Full Coverage vs. Liability Coverage in Atlanta, GA

 

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When selecting auto insurance, you must assess your needs and be aware of the different types of available coverages. In some circumstances, full coverage may be right for you, while it may make sense to carry a liability-only policy in others.  

The knowledgeable team at Peachstate Insurance can discuss your situation and help you secure the optimal auto insurance. Contact us today to get started. 

What’s the Difference Between Liability and Full Coverage? 

Auto insurance provides coverage for vehicle-related causes of loss, and the type of policy you choose determines which events are covered. Liability-only and full coverage policies vary in scope and cost; understanding their differences is crucial to being adequately insured.

Liability Insurance 

Liability insurance provides coverage for third-party losses if you are at fault in an auto accident that causes property damage or bodily injuries. It may also pay for associated legal expenses if you are sued. Many states, including Georgia, require drivers to carry minimum liability insurance. 

Depending on your circumstances, you may elect to only carry liability insurance; if you do so, that is known as a liability-only policy. Liability-only policies are generally cheaper than policies with full coverage because they insure against fewer causes of loss. For example, liability insurance does not cover your own injuries or damage to your vehicle if you are responsible for an accident. It also may not provide coverage for your passengers’ injuries if they are members of your household.  

Full Coverage Policies 

Drivers may determine they want more financial safeguards than a liability-only policy provides. This may lead to selecting a full coverage policy, which typically includes collision and comprehensive coverage in addition to liability insurance.  

Collision coverage may pay for damages to your automobile from collisions with other vehicles or objects (e.g., fences or signs), regardless of fault. Comprehensive insurance may provide payments to repair damage to your automobile from non-collision events (e.g., vandalism, hail and animal strikes). It may also pay to replace your vehicle or its parts if they are stolen. Because of these added financial protections, full coverage policies typically cost more than liability-only policies.  

Additionally, states have different laws and may only consider you fully covered if you carry liability, collision, comprehensive and any other coverages they may require (e.g., uninsured/underinsured motorist and personal injury protection). If you are leasing your car, lenders also often have coverage requirements. Make sure to check these stipulations before financialize your insurance portfolio. 

Other Coverages 

In addition to the types of insurance listed above, other coverages may be available, such as gap insurance, rental car reimbursement, medical payments insurance and roadside assistance. 

Contact Us 

The experienced team at Peachstate Insurance can help you get the auto insurance that best suits your needs. Contact us today for more information or a quote.