Difference Between Liability Insurance & Full Coverage?
Hello, my name is Jerry Becerra. I’m with Barbary Insurance Brokerage, and today we’re going to be talking a number of property and casualty insurance issues. A lot of people wonder what’s the difference between liability only coverage and full coverage on personal auto insurance. Well, liability only usually, literally means liability which is bodily insure and property damage to third parties; meaning some other person. You hit their car, they’re injured and the car is damaged, they’ll be coverage for that party. Full coverage can actually mean different things to different people. But, it includes a whole list of other coverages. Insurance agents are required by law to offer you uninsured motorist coverage which is coverage for you if you’re hit by a motorist that’s not covered by liability. It also can include something called underinsured motorist coverage which fills the gap if they didn’t have enough coverage. But, what most people consider full coverage is the comprehensive and collision coverage on their vehicles. Comprehensive is everything but collision, that’s your fire and theft and vandalism, a rock hitting the windshield and then collision is collision; you collide in with another party or an inanimate object. That collision coverage is damage on your vehicle and subject to a deductible. Other things that can be included in full coverage are towing and labor and rental reimbursement. A lot of people expect the rental reimbursement to be there at the time of reclaim, but they may not ask for it. So, it’s important to ask for these items to make sure that you have what you considered to be full coverage. This is Jerry Becerra with Barbary Insurance Brokerage. I hope this was helpful for you.