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Cheap auto insurance with liability and full coverage

Most consumers, when shopping for cheap auto insurance, will lean toward basic liability coverage. This is definitely the least expensive policy to purchase, as far as premiums go, and in this way it can save you money. But it’s important to understand the difference between liability and full coverage before making a final decision.

Liability insurance covers only damage caused to other vehicles, property, or injuries to passengers. Coverage at least at this level is mandated across the country, although specifics can vary from state to state, and is limited to a set dollar amount. If an accident causes more bodily injuries or destruction to property than the predetermined limit, you can be held legally responsible for the rest by the injured parties and sued for damages.

Some states require motorists to purchase an additional uninsured or under-insured policy specifically against this occurrence. However, this is considered an extra add-on that will increase your monthly premium.

Full coverage is not going to be the most cheap auto insurance, but it does offer more protection. It is required by lenders if your car is still under lease, and might be a good idea if your car is less than two years old, even if it’s paid off, because its value is still relatively high.

This kind of policy really consists of a basic liability policy plus one or two extras. These are called collision and comprehensive. Although you can carry comprehensive without purchasing collision, you cannot purchase collision without comprehensive.

Comprehensive is sometimes described as “other than collision” because it covers damage to your car from unlikely sources such as hailstorms and other weather, fire, vandalism, and theft. In short, it protects you from events for which you are not at fault and could not prevent. Collision covers exactly that: collisions. It pays for damages to your own vehicle in case of an accident, something liability insurance does not do.

It’s great to have cheap auto insurance, but be sure you’re still getting the kind of coverage you need.