The law states that you must insure your vehicle, but you also want to protect it, and insurance is a good way of doing just that. The minimum insurance required by the state is liability insurance, but if you want, there is also full coverage insurance. These two main types of insurance share many similarities, but that’s not what’s being discussed today, instead, this article will explain the differences between the two, and whether one is the better option over the other. So, if you are looking for good, cheap car insurance in Joliet, here are the differences between the two main insurance types you’re going to be offered.
#1. Liability only insurance
Liability insurance covers medical and property damages caused by any accident where you are the one at fault. Liability is the bare minimum insurance most states require of their drivers. For example, minimum coverage is usually shown listed as three numbers, which for the sake of example, we’ll have as 25/50/15. These would be short for $25,000, $50,000, and $15,000. The first would be the total amount of medical bills for a single person, the second would be the amount spent on medical bills for everyone in the accident, and the third would be the amount used to cover any property damage caused by the accident. Any costs that exceed these limits must be paid off by you. The main drawback to liability only insurance is that, while other cars are covered in terms of cost, yours is not. You would have to pay every last cent of damage caused to your vehicle out of pocket.
#2. Full coverage insurance
Full coverage as the name implies, is coverage that not only includes liability insurance, but also a number of added coverages that liability insurance lacks. For one, both yours and the cars of other people in an accident are covered by full coverage insurance. It also adds comprehensive and collision insurance into the mix, so there’s an added bonus. Full coverage insurance may be more expensive, but it’s usually the better option compared to liability only insurance. However, it may be mandatory in the case of a lien holder still being on your vehicle, meaning that you’re still paying for it.
Ultimately, which one you choose is up to you. Liability only insurance may be limited compared to full coverage insurance, but if you’re tight on money, it’s better to have some insurance than no insurance. And if you feel like you want all of the protections on your vehicle, as well as feel like you can pay for it, full coverage will give you the peace of mind you want.
