The Difference Between Full Coverage And Liability

Many young folks purchasing insurance for the first time may be confused by full coverage and liability insurance. Other than the cost difference (full coverage costs more) there are other distinctions.

Full coverage

Full coverage is a fusion of collision and comprehensive coverage. It ensures your vehicle is covered if damage occurs from another vehicle or object. If your car is hit, you hit a car, or an object damages your car, it will be covered in most cases.

Liability

Liability insurance covers anyone struck by your vehicle and covers medical costs that may occur from the accident. In other words, your insurance will cover the damage you cause to someone else or their vehicle but not your own.

So, if you have a new car it may be best to purchase full coverage, while older or used cars may be best covered by liability insurance.