Liability insurance – Protects a driver financially if he or she is found legally responsible for causing injury to another person or their property.
There are two categories of damages that liability insurance covers—bodily injury liability (BI) and property damage liability (PD). Liability insurance also provides the insured person a legal defense against a lawsuit alleging bodily injury or property damage from an accident.
Full Coverage or Comprehensive insurance – Protects a driver financially if he or she is found legally responsible for causing injury to another person or their property and for damages to the driver’s car.
Comprehensive insurance is optional coverage that protects you in the event your vehicle is damaged either in a collision or due to something other than a collision. This includes theft, vandalism, flood, hailstorm, and fire. In some states, comprehensive coverage includes glass replacement with no deductible—this varies by state, so ask your All Solutions Insurance Agent about the specifics when you purchase your policy.
Comprehensive coverage is usually sold with a deductible amount. A deductible is the out-of-pocket expense the insured agrees to pay before any payment from the insurance company kicks in. Deductibles of $250, $500 or $1,000 are fairly common. As a general rule of thumb – the higher the deductible, the lower the corresponding coverage premium.
Although comprehensive insurance is not required by any state, your lending institution may require this coverage if you are financing your auto in order to protect their insurable interest. Be sure to work with your All Solutions Insurance agent in assessing your needs to see which auto insurance types best fit you. If you are financing your auto—depending on the term of your loan—it is possible that the vehicle will depreciate more quickly than the value of your loan. Keeping track of your vehicle’s depreciation value can help assess the benefits of paying the difference to the lender or purchasing gap insurance, which covers the difference between a vehicle’s actual cash value and the sum owed to the lender. At All Solutions Insurance, our specialists will constantly monitor your records to ensure that you never overpay for insurance and you are well protected at all times.
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For more general information regarding insurance, call:
Moreno Valley Office at (951) 247-2003 or San Jose Office at (408) 225-4300
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