When it comes to auto insurance, understanding your coverage options is key to making the right decision. One of the biggest choices drivers face is whether to carry liability-only insurance or full coverage insurance. At Preferred Insurance Agency in La Crosse, WI, we want to help you understand the differences so you can make an informed choice.
What is Liability-Only Insurance?
Liability-only insurance covers damages and injuries you cause to others in an accident, but it does not cover your own vehicle. It includes:
- Bodily Injury Liability – Covers medical expenses, lost wages, and legal fees for the other party if you’re at fault.
- Property Damage Liability – Covers repair or replacement costs of the other person’s vehicle or property if you cause an accident.
This type of coverage is the minimum requirement in Wisconsin and is generally the most affordable option. However, if you’re in an accident, you’ll be responsible for paying out of pocket for any damage to your car.
What is Full Coverage Insurance?
Full coverage insurance includes liability coverage plus additional protection for your own vehicle. It typically consists of:
- Collision Coverage – Pays for damage to your car from an accident, regardless of fault.
- Comprehensive Coverage – Covers non-collision incidents like theft, vandalism, hail damage, and animal collisions.
Full coverage is usually required if you have a loan or lease on your vehicle. Even if it’s not required, it provides peace of mind by covering your vehicle in various situations.
Which One Should You Choose?
The right coverage depends on your individual circumstances. Consider these factors:
- Vehicle Value – If your car is older or has a low market value, liability-only might be enough. If it’s newer or worth a lot, full coverage is a smart choice.
- Budget – Liability-only is cheaper upfront, but full coverage can save you from large repair or replacement costs after an accident.
- Risk Tolerance – If you can’t afford to replace your car out of pocket, full coverage is the safer option.
- Loan or Lease Requirements – If you’re financing your car, full coverage is often mandatory.
Get the Right Coverage for Your Needs
Whether you choose liability-only or full coverage, the team at Preferred Insurance Agency in La Crosse, WI is here to help. We’ll assess your situation and find the best policy to protect you and your vehicle.
Contact us today for a free quote and expert advice on your auto insurance options!
Preferred Insurance Agency
401 King St. La Crosse WI 54601