Understanding Liability Law For Your Vehicle
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.
The financial institution that holds the title for your vehicle will require that you carry full coverage so that if you get in an accident, their property will be covered. If you cause severe damage to the vehicle and cannot get them fixed they know that you will probably stop making the payments or at least will have a harder time doing it. With the full coverage policy, the insurance company should help to pay for your repairs.
The insurance policy companies know that if you only held liability insurance and the policy would not cover to get your vehicle fixed, you may not make the future payments if you cannot drive it. While it may be inconvenient to pay for the full coverage policy, it will make a difference if you get into an accident.
Another thing to consider if you own an older model vehicle that you hold the title to is what the value of your vehicle is. Insurance policies, both full coverage and liability, come with a deductible on the covered damages.
If your deductible is five hundred dollars and the vehicle is only worth five hundred dollars, you will not get anything from the insurance policy because your deductible and the cost to total out the vehicle negate each other.
Even if the value of your vehicle is low you will still be required, in most states, to have an insurance policy on your vehicle. If your vehicle value is low and the deductible is higher than the value than it may be a wise decision to purchase the liability insurance policy. - 21396
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.
The financial institution that holds the title for your vehicle will require that you carry full coverage so that if you get in an accident, their property will be covered. If you cause severe damage to the vehicle and cannot get them fixed they know that you will probably stop making the payments or at least will have a harder time doing it. With the full coverage policy, the insurance company should help to pay for your repairs.
The insurance policy companies know that if you only held liability insurance and the policy would not cover to get your vehicle fixed, you may not make the future payments if you cannot drive it. While it may be inconvenient to pay for the full coverage policy, it will make a difference if you get into an accident.
Another thing to consider if you own an older model vehicle that you hold the title to is what the value of your vehicle is. Insurance policies, both full coverage and liability, come with a deductible on the covered damages.
If your deductible is five hundred dollars and the vehicle is only worth five hundred dollars, you will not get anything from the insurance policy because your deductible and the cost to total out the vehicle negate each other.
Even if the value of your vehicle is low you will still be required, in most states, to have an insurance policy on your vehicle. If your vehicle value is low and the deductible is higher than the value than it may be a wise decision to purchase the liability insurance policy. - 21396
About the Author:
April Kerr owns website JeriMoberly which has info on low cost home umbrella insurance and cheep excess umbrella liability insuranse.
posted by X - Men @ 1:53 AM
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