Comprehending Liability Law For Your Auto
In many states it is a requirement in order to drive that you carry an insurance policy that covers your vehicle. It can be very expensive to have an insurance policy that is full coverage. A full coverage policy covers any damages that are done to the policy holder’s vehicle and property as well as any damage to the other party’s property and vehicle. A liability insurance policy only covers damage done to the other party’s vehicle and property.
A liability insurance policy is less expensive to purchase than a full coverage policy. Most states do require you to have an insurance policy in order to own and operate a vehicle. It is acceptable to have only a liability policy as long as you have full ownership of your vehicle.
If you are still making payments to a bank or financial institution to purchase a vehicle, the bank or financial institution still holds the title to the vehicle so they require that you have a full coverage policy on the vehicle. This is because if you were to get into an accident, they would like your policy to cover the damages to your vehicle so you can get it fixed and continue to drive it.
They know that if you only had a liability policy and the vehicle was damaged to the point that it was not drivable, the chances are very good that you will not be able to make the payments if you are not able to drive the vehicle to your work. Even though it costs more on a monthly basis for a full coverage policy, you will be able to get the vehicle fixed after the accident and should have no problem continuing with the payments.
Finding out the value of your vehicle is a very important part of the decision about whether you should have a full coverage policy or a liability policy. With any policy that you choose you will have a deductible to pay if you are in an accident.
If the deductible is more than the total value of the vehicle then paying for the higher priced full coverage policy may not be a good option for you. If you get into an accident and it will cost more to fix the vehicle than the value of the car then the insurance company will probably total your vehicle out and only cover you for the value.
Whether your vehicle is not worth much or not, you will probably still have to purchase an insurance policy if you want to drive. If your vehicle is not worth that much than you may be better off paying the lower price for the liability policy and just looking for a new vehicle to replace the old one if you get into an accident.
April Kerr owns website JeriMoberly which has info on cheapest home umbrella insurance and cheep excess umbrella liability insuranse.
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