Keeping it Simple: Insurance Basics

I want to educate my readers about auto, home and life insurance one question at a time. Please submit your questions to me, and I will answer them every week.

Do you remember when you were a child, and your mom told you to wear a helmet when you rode your bike? She would also remind you to tie your shoe laces before you went outside.

Even as children, we are conditioned to take preventative measures against accidents. This is because as humans we all possess an intrinsic quality to preserve ourselves and our families. Buying insurance plays into this very philosophy.

Unfortunately, too many of us are so entrenched in our day-to-day lives that we forget to pay attention to some very important details in our coverages. We end up paying thousands of dollars in repairs because our insurance was inadequate.

We are stuck without roadside assistance, and the only car we can "rent" while our car is being fixed is that old, beat up pick up that has been sitting in our dad's driveway for the last five years.

We have all heard these stories. That's why I have decided to start this blog. I want to educate my readers about auto, home and life insurance one question at a time. Please submit your questions to me, and I will answer them every week. Picking the right coverage doesn't have to be rocket science. At the end of the day, we all want to feel secure.

So here's to a fresh start! Cheers!

This week's question is from Larisa in Alpharetta:

"What is the difference between full coverage and liability only coverage?"

Larisa, full coverage covers damage to your vehicle in the event of an accident or some other perils. If your car is totaled, the insurance will pay for the replacement cost of your vehicle less the deductible.

Full coverage can be broken down into comprehensive and collision coverage.

  • Comprehensive coverage includes everything that happens to your vehicle that is not your fault; for instance, if a tree falls on your car.
  • Collision coverage covers your vehicle damage if you collide with something, and it is not your fault; for example, if you rear end someone. If you have a loan on your car, it is likely that you are required to have full coverage by the lender.

Liability only coverage does not have comprehensive and/or collision coverage. If your car is damaged, you are on your own for the repairs. This type of coverage is much cheaper. The liability covers damages to other people's property; if the other party was to sue for damages, you would be covered up to your limits for medical payments, pain and suffering, property damage etc. The state requires liability coverage at a minimum.

Do you have questions about your coverage? We would love to help. Submit your questions to us, and we will answer them in our next blog. For personal assistance, you can contact the Barry Hancock State Farm Agency at 770-645-1002.

This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.


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