Auto Insurance

What is Auto Insurance?

Auto insurance is a policy that provides financial protection in case of accidents, theft, or damage involving your vehicle. It typically includes:

• Liability Coverage – Covers costs if you cause injury or property damage to others.
• Collision Coverage – Pays for repairs to your vehicle after an accident.
• Comprehensive Coverage – Protects against non-collision incidents like theft, vandalism, or weather damage.
• Uninsured/Underinsured Motorist Coverage – Helps cover expenses if you're hit by a driver without sufficient insurance.

If you don’t have auto insurance, you risk serious financial and legal consequences. In most states, driving without insurance is illegal and can result in fines, license suspension, or even vehicle impoundment.

What is the difference between full coverage & liability only coverage?

The main difference between full coverage and liability coverage in auto insurance is the level of protection they provide:

• Liability Coverage – This is the minimum required by law in most states. It covers damages and injuries you cause to others in an accident but does not cover your own vehicle’s repairs or medical expenses. It includes:
• Bodily Injury Liability – Pays for medical expenses for other parties injured in an accident you cause.
• Property Damage Liability – Covers repairs for other people’s vehicles or property.
• Full Coverage – Includes liability coverage plus additional protections for your own vehicle. It typically consists of:
• Collision Coverage – Pays for repairs to your car after an accident, regardless of fault.
• Comprehensive Coverage – Covers damage from non-collision incidents like theft, vandalism, fire, or natural disasters.
• Uninsured/Underinsured Motorist Coverage – Helps with expenses if you're hit by a driver with little or no insurance.

While liability coverage is the bare minimum to drive legally, full coverage provides broader financial protection, especially if you have a newer or financed vehicle.