If a branch had fallen on her car during the storm instead of a crash, her Comprehensive coverage would have handled it. The Moral of the Story
Leo’s insurance company steps in, but only for the other person.
Leo is on his own for his sedan. Since he doesn't have Collision coverage, his insurance won't pay a dime for his totaled car. He has to take the bus to work the next day and start saving from scratch for a new vehicle. 2. Sarah’s Experience (Full Coverage) car insurance full coverage vs. liability
The car in front of them slams on its brakes to avoid a stray dog. Leo, distracted for a split second, rear-ends the car. Sarah, right behind Leo, swerves to avoid him but hydroplanes into a concrete light pole. Both cars are totaled. The Aftermath 1. Leo’s Experience (Liability Only)
To illustrate the difference between and Full Coverage , let’s look at two friends, Leo and Sarah, who both drive through the same busy intersection on a rainy Tuesday. If a branch had fallen on her car
His Liability insurance pays for the damage to the car he hit and the medical bills for that driver.
Because she has Collision coverage, her insurance pays the "Actual Cash Value" of her SUV, minus her deductible. If she has Rental Reimbursement, they also provide a temporary car while she shops for a replacement. Since he doesn't have Collision coverage, his insurance
is "protection for your asset ." It ensures that no matter who is at fault—or if a "act of God" occurs—you aren't left walking.