As drivers, many of us may not fully understand auto insurance and what’s covered under different policies. Many of us have a general understanding of what’s required by law but little else is fully understood. The Berks County Insurance agency of Reading, PA is dedicated to making sure drivers understand their options when it comes to auto insurance. It’s simply not enough to only understand what’s legally required to drive in your state. Our agency is committed to educating drivers, not the many options available to them. One of the first things that drivers should explore is the differences between liability and comprehensive auto insurance.
Liability Insurance…What is it? Why Do I Need it?
Liability insurance only covers damage that results from a collision. It covers damage to other people’s property, as well as any injuries that others may sustain as a result of a collision where you’re at fault. This is a limited auto insurance policy however, it’s required by law in most states. However, the state minimum requirements may vary from state to state. As a driver in Philadelphia, you are required to carry $15,000 per person and $30,000 per accident. Driver’s must also carry $5,000 in property damage liability coverage as well as uninsured motorist coverage. Motorists must carry $15,000 per person and $30,000 per accident. It’s important to understand that liability insurance doesn’t cover anything that’s not collision-related. Motorists need liability insurance to legally drive in the state of Philadelphia. The price difference between liability and full coverage or comprehensive insurance can be significant. Liability insurance covers injuries and damage and to other people’s property.
Comprehensive auto insurance covers both collision and non-collision related damage. Full coverage/ comprehensive auto insurance covers the cost of damage to your car and to others. Comprehensive coverage will pay for the cost of repairing or replacing your vehicle. This coverage kicks in even if your car is stolen. It also covers damage your car sustains that’s unrelated to a collision. This includes damage to your car that may result from fire, wind, hail, flood, theft, and vandalism. This coverage also includes damage caused by falling objects and hitting an animal. Comprehensive auto insurance coverage isn’t required by state law. However, there are situations when a motorist might be required to carry it. If you take out a car loan or lease a car, your lender will more than likely require you to carry full coverage or comprehensive insurance. We are committed to helping motorists understand their options when it comes to auto insurance. We want to explore your options so that you understand your options and make choices that best suit your unique needs and situation. Give us a call. Were here to help.