Car Insurance Full Coverage Vs. Liability -

His Liability insurance pays for the damage to the car he hit and the medical bills for that driver.

Sarah’s situation is messy, but her financial hit is capped. car insurance full coverage vs. liability

If a branch had fallen on her car during the storm instead of a crash, her Comprehensive coverage would have handled it. The Moral of the Story His Liability insurance pays for the damage to

Because she has Collision coverage, her insurance pays the "Actual Cash Value" of her SUV, minus her deductible. If she has Rental Reimbursement, they also provide a temporary car while she shops for a replacement. The Moral of the Story Because she has

is "protection for your wallet against others ." It stops you from being sued into bankruptcy for a mistake, but it leaves your own car vulnerable.

To illustrate the difference between and Full Coverage , let’s look at two friends, Leo and Sarah, who both drive through the same busy intersection on a rainy Tuesday.