What's the difference between...?

Question

Full coverage auto insurance and liability auto insurance? My step daughter wrecked my car last night. We carry full coverage on our car. The accident was her fault. I don't know what kind of coverage the other people have. What should I expect next?

Answer 1

Insurance agents tend not to use the term "full coverage" because it's ambiguous. The main kinds of insurance coverage for autos are:

Liability (mandatory in most states)
Uninsured/underinsured (available in most states)
Medical payments (mandatory in most states)
Comprehensive (always optional unless you're leasing)
Collission (same as above)

Liability covers any damage to persons or property that you may cause while driving your vehicle.

Uninsured/underinsured covers you for any damages caused by someone else driving their vehicle should they not have sufficient insurance to pay for your damages. It also covers you in the case of a hit and run. This will also cover you if you are a pedestrian.

Medical payments covers payments for you and your passengers should you be injured in a car accident.

Comprehensive covers damages to your car that are not caused by an accident or by you. Vandalism, weather damage, theft, getting keyed in the parking lot, etc. Oddly enough, this also covers hitting an animal such as a deer.

Collision covers damage to your car cause by you while driving it. You run into something, this is what covers you.

Liability, uninsured/underinsured, and medical payments are pretty cheap. Comprehensive is relatively expensive, and collision is downright pricey. Collision is likely to cost as much as the other kinds of coverage combined.

In your case, your liability coverage will cover any damages to the vehicle and people your step-daughter hit. There is no deductible for this. They'll pay everything up to the limits of your coverage.

The damages to your car will need to be paid for through a collision claim. You will have to pay a deductible, then your insurance company will pay up to and including their assessment of the value of the car. If they decide that the car will cost more to repair than it's worth, they'll just give you the money and take the car.

Contact your insurance company and file a claim. They'll send an adjuster out shortly.

Answer 2

Normally, when people say they have "full coverage" they are talking about comprehensive and collision insurance. These types of insurance cover YOUR vehicles. In this case, your collision coverage would cover the damage to your car. Comprehensive and collision insurance have a deductable. For example, you might have to pay the first 500$ in damage to your vehicle.

Liability insurance is the bare minimum insurance that is required in SOME states. It covers damage to other vehicles and the people in them if your (or someone else covered by your policy) has an at-fault accident. There is no deductable on liability insurance. Your insurance company pays from dollar one.

If the accident was 100% your step daughter's fault, it really does not matter what type of insurance the other vehicle has. Your liability insurance would cover damage to that vehicle and bodily injury claims up to your policy limits. It would also cover the cost of the other person's rental vehicle.

If the accident was partially the fault of the other driver(this is called comparative neglagence), a couple things could happen, depending on the state you live in. Partially at fault NORMALLY means 1 - 49% at fault.

1. In a minority of states, the other person's insurance must cover all of the damage to their vehicle if they are even 1% at fault

2. In most states the other person's insurance is responsible for the percentage that they are at fault. For example, if they are 30% at fault, their insurance pays 30%. Normally when this happens, the driver of the other vehicle would submit the claim to their insurance company. That insurance company would pay the entire claim, then come back to your insurance company for the 70%. This process is called subrogation. If your step daughter is more than 50% at fault, your insurance would have to cover 100% of the damage to your vehicle (along with the 70% to the other vehicle from the example).

In most states, if the accident is 50-50 (i.e. both parites are equally at fault), each persons' insurance pays for their own vehicle (regardless of the damage to each vehicle)

Hope this helps

Answer 3

If you have full coverage that means you carry collision and comprehensive coverage (that pays for your vehicle regardless of fault if it's a covered loss). You will have to pay your deductible for the repairs. It does not mean you have rental coverage, as that is optional, and you'd have to check and see if you bought it. This is in addition to your liability coverage. Your liability coverage pays for the other person's damages if you are at fault. It would not matter in this case what the other person carries, since they would present a claim against your liability coverage and your carrier would pay it.

What you can expect next- assuming you reported it already- your company will talk to everyone, confirm it's a case to pay and see both cars. They will issue payment based on their estimate to the other person and pay for a rental if one is needed. They will see your vehicle and give you an estimate and issue payment for your damages less your deductible. You will put the car in the shop (if it's repairable) and pay them the deductible when the repairs are done to your satisfaction, or pay them in full if you got the check. Sorry to hear about the accident. I hope everyone was ok.

Answer 4

Full coverage really doesn't mean everything is covered. Liability insurance only pays for the other person's vehicle when you hit someone else. It will not pay for any of your damages or injuries. Just pays who you owe up to the limit on the policy.
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All other types of coverages typically are regarding your vehicle and your damages.
Collision coverage and comprehensive coverage cover your car. Collision coverage pays for the damage to your car less whatever your deductible is on the coverage (typically $250 or $500) but their is also Loss of Use coverage for your car (it is reimbursement of rental expenses up to a specified limit on your policy for while your car is being repaired. Then their is med pay and personal injury protection (PIP). These coverages are for medical expenses for anyone in your own vehicle during an accident.

You would want to know if the other party is injured. and you will want to know what your liability coverage limit is to make sure you are not responsible for damages if the damages or the injuries are severe in the other vehicle and might go over you insurance policy's limit.

Answer 5

Full coverage insures your car. Liability pays for damages cause by your car to others. The best thing to do is call your insurance company and tell them what happened. Then they will start your claim to to fix your car and when the other people contact them it will make it easier for them to start a claim to get their car fixed.
If you have a good agent they will guide you through the process.

Answer 6

Your collision coverage will handle repairs to your car less the deductible amount (your portion you will owe to the repair shop). Your liability will cover the other car, rental and loss of value (if any). Just bite the bullet and report it ASAP to your company. They will handle everything from there with the other party. Do not talk to the people in the other car or make any deals -- just in case.

Answer 7

Full coverage is usually liability, comp/coll coverage. It will pay for your damages. The coverage that the other people have is irrelevent as it was her fault. As she was at fault, they will NOT pay for your damages. You will expect your rates to go up due to the at fault accident.

Answer 8

With full coverage, both vehicles will be fixed by your insurance, and it won't matter what they others carry. You will have to pay any deductible of course.