Liability or Full Coverage Auto Insurance FAQs

Liability or Full Coverage Auto Insurance FAQs You Need To Know

At Farmers insurance, we intend to make it easy for you to understand your Liability or Full Coverage Auto Insurance insurance options.  That’s why we are presenting this information on Liability or Full Coverage Auto Insurance where we will review the types of coverage’s available and briefly discuss some important factors you will want to think about when selecting which plan is right for you and your family.  First off, lets review the types of coverage’s available.  The primary type of auto coverage is known as liability insurance.  This coverage pays for the injury if you’re legally responsible for accidentally injuring someone or for damaging another vehicle or another property as a result of an auto accident.

Auto liability coverage falls into two categories and sometimes compared to the question should I get Liability or Full Coverage Auto Insurance .  The choice you make can have a big impact on price and the out of pocket potential.  First there is bodily injury liability, this covers medical expenses, pain and suffering, lost wages and other special damages.  The next category is property damage liability.  This covers damage to property, for example, it will fix the car that was involved in the accident or property if you hit a lamp pole or house.  So, you’re most likely aware that in many states, drivers are required to carry a minimum amount of liability coverage with in order to register their vehicle or obtain a drivers license, and each state sets its own minimum liability coverage limits.  For example, the minimum limits for California are $15,000 per person, $30,000 per occurrence and $5,000 for property damage.  So what this implies is that if you are in a collision that you were found to be responsible, your insurance company can pay as much as $15,000 for an individuals injuries in the accident and the maximum that they will pay is $30,000 total for that accident, or what is also often known as per occurrence.

So, to clarify, with basic minimum liability coverage levels, no one person will receive more than $15,000 for bodily injury plus the insurance firms will only pay out a maximum $30,000, regardless of how many people are involved in the accident.  The other factor of this liability coverage is the simple $5,000 for property damage.  It will pick up the bill for the other parties property.  So if are in an accident and also you hit someone else’s car, your insurance company would spend up to $5,000 on your behalf to have the damaged car fixed or replaced, and that’s it.  You see choosing Liability or Full Coverage Auto Insurance can have a big impact on price and the out of pocket potential.

So you may be thinking to yourself, $5,000 to replace a vehicle?  Or $15,000 to cover injuries?  Well, in a different article we discuss some guidelines for selecting the suitable auto insurance coverage levels and then take a good look as to just why the state minimum coverage’s might not be enough.  So one last point about liability insurance, because it would appear to cause a little confusion for people.  Liability insurance only pays for the other parties injuries and damages to their vehicle.  In the event you simply have liability insurance set up, you would be forced to be pay from your pocket to pay   to fix your car or truck and your medical expenses. Again, in this case having medical may be a good choice for either Liability or Full Coverage Auto Insurance can have a big impact on price and the out of pocket potential.

So moving on, the 2nd type of insurance is named uninsured/underinsured motorist liability.  Such coverage is available to shield you or your passengers who are hurt on account of another driver’s negligence, that when don’t have insurance.  That’s a right, uninsured motorist coverage behaves like the other drivers insurance and addresses your injuries and property damages up to any extent possible of one’s uninsured motorists coverage.  So, you might be considering, what makes it a good idea to have uninsured motorist coverage when it’s mandatory for many drivers to have insurance?  Well, the actual answer simple.  Typically, 25% of drivers do not have any insurance and another 30% don’t have enough.  So you can see why uninsured motorists coverage is a wonderful way to make sure that you and your family are fully protected, even when it’s not your fault.  You will notice that uninsured and underinsured motorist coverage are recommend in the cases of Liability or Full Coverage Auto Insurance as it is only available under Full Coverage.

The next kind of coverage is what’s referred to as comprehensive coverage.  This sort of coverage protects you from losses that result from fire, theft, falling objects, riots, storms, earthquakes, floods in addition to when there is a collision develop a bird or animal.  Another different way to think about comprehensive insurance is the idea that it applies when no accident is involved. You should know that comprehensive coverage is normally required if your vehicle is leased or financed otherwise they will put forced placed insurance on your policy to protect their interest and it will not be cheap.  Not so much a factor of You see choosing Liability or Full Coverage Auto Insurance can have a big impact on price and the out of pocket potential.

The next kind of coverage is collision insurance.  This kind of insurance pays for damages to your car or truck as a result of an accident where you are actually determined to be at fault.  So earlier we discussed liability coverage.  That’s the coverage that pays for the other party’s vehicle if you end up at fault, whereas collision coverage would pay the bill for damages to your automobile, even if you are discovered to be at fault.  Again, not a big deal in comparing Liability or Full Coverage Auto Insurance as collision is only available in full coverage.

The next type of coverage we offer is medical coverage.  This coverage might help pay for many medical expenses that won’t be covered by your existing medical insurance plans.  It can also provide coverage for you or a family member when riding in another person’s vehicle.  You will find some people take the medical over in both Liability or Full Coverage Auto Insurance.

Next up is our towing and roadside assistance service.  By way of this coverage, you will get emergency roadside assistance 24 hours a day, 7 days a week.  This coverage provides assistance if you require a tow, you lock your keys in your car, you obtain a flat tire or a dead battery.  This coverage is more or less the identical that you get with AAA, but in such cases there is no such thing as annual fee.  The other difference is AAA give you maps and discounts and insurance roadside assistance is assigned to the insured car, not the person.

The next coverage is loss of use coverage, or that is occasionally called rental car coverage.  This coverage pays a flat $25 or $50 each day for loss of use while your car or truck is being repaired after covered loss, plus the good thing is, you are given money whether you rent a car or not.  When you select the $50 each day option, it may also include lodging, travel and meal expenses when a loss occurs over 50 miles from your home.  Here you are limited with Liability or Full Coverage Auto Insurance and getting the Loss Of Use/Rental Coverage as it is only available if you have the comprehensive coverage discussed above.

Next up is our glass deductible buyback.  This type of coverage can be quite useful because one among the most common claims is for damages to windshields.  With these glass deductible buyback available, your deductible is lowered to $100 for practically any glass replacement and offers free repairs for small chips and cracks that may develop into total windshield replacement if untreated.  In some states like Arizona, the deductible buyback is lowered to $0.

So we hope we have helped answer some questions you might have had regarding auto insurance coverage levels.  Call us today at 480-491-8585 if you are in Arizona or California on help choosing the right coverage to protect your family.


* Disclaimer – Please check with your insurance agent as coverages are different between states and insurance companies.

Topic: Liability or Full Coverage Auto Insurance