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

drives an older sedan he paid off years ago. To save money on monthly premiums, he carries Liability-Only insurance—the bare minimum required by law. car insurance full coverage vs. liability

The car in front of them slams on its brakes to avoid a stray dog. Leo, distracted for a split second, rear-ends the car. Sarah, right behind Leo, swerves to avoid him but hydroplanes into a concrete light pole. Both cars are totaled. The Aftermath 1. Leo’s Experience (Liability Only) If a branch had fallen on her car

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 car in front of them slams on

Leo’s insurance company steps in, but only for the other person.

Sarah’s situation is messy, but her financial hit is capped.

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.