Thursday, March 16, 2017

Liability Only or Full Coverage - Which Auto Insurance is Best for You?

Did you know that getting just one ticket for failure to provide proof of insurance is a 4-point hit to your driving record? It only takes a total of 8-points within an 18 month period to suspend a license in the state of Missouri. All licensed drivers are required to carry state minimum liability insurance coverage in Lake of the Ozarks and are required to carry proof of insurance at all times in their vehicle. Naught-Naught Agency at Lake of the Ozarks wants to make sure you know the minimum state requirements and the difference between "Full" coverage and liability only coverage.

Missouri state law requires liability coverage. The minimum level of coverage required by state law is:
  • $25,000 per person for bodily injury
  • $50,000 per accident for bodily injury
  • $10,000 per accident for property

Liability Coverage

Liability insurance will cover property damage and bodily injury when the incident is your fault.
Liability for bodily injury covers immediate medical expenses, including emergency care. If the injured person is not able to return to work, it will cover loss of income. Bodily injury liability also covers medical expenses for long-term complications, funeral costs and lawyer defense fees for the policyholder. Property damage liability typically covers vehicle damage to others or replacement costs, and expenses for repairs to damaged buildings. It also covers repairs for other nonmoving objects such as street lights.

To cover your own vehicle regardless of fault you would need to purchase physical damage coverage for your vehicle subject to a deductible.  Some people call this "Full Coverage" as you add coverage for your vehicle to the auto liability policy.  This is a misconception as there really is no such thing as full coverage since policies always have exclusions.  In any case, the term full coverage typically refers to the fact that there is coverage for the insured's vehicle as well as liability coverage for damage to others.  

The bank may require the borrower to purchase "Full" coverage for physical damage to the vehicle they are have an interest.  This coverage can be purchased as Comprehensive Coverage and Collision Coverage.

Collision Insurance pertains to covering your auto when it is in an accident such as colliding with another vehicle or other object.  There is typically an out-of-pocket deductible for this coverage.

Comprehensive Coverage

Comprehensive Insurance will take care of damage to your vehicle, if the damage isn't collision related. For example, a comprehensive policy at Lake of the Ozarks will cover a crack in your windshield or body damage from a falling tree or hail.
It covers damages caused by storms and natural disasters, vandalism and theft, objects falling on your vehicle, fire or hitting a deer. Similar to Collision, Comprehensive coverage comes with a separate deductible, meaning you'll pay some out-of-pocket cost to fix your car and the policy will cover the rest up to the actual cash value of your car. If the damage is greater than the value of your vehicle the company may declare a total loss and pay you its book value.

Unfortunately, every year there are thousands of people in Missouri who are involved in accidents that have no coverage. Review your insurance premiums in Lake of the Ozarks and visit with a local agent about the proper coverage for your specific needs so you are not leaving yourself open to lawsuits or breaking the law.

If you're unsure if you have correct coverage contact the best insurance agent at the Lake of the Ozarks to discuss your coverage needs. Our goal is to meet with clients about their specific insurance requirements and how to best protect them.

Request a Free Quote Online! Contact Insure the Lake today for all your Lake of the Ozarks insurance needs! 

About the Author: Steve is a double back-flip insurance ninja. He was named Young Insurance Agent of the Year by the Missouri Association of Insurance Agents in 2010 and is a Certified Insurance Counselor. When he is not helping customers, he enjoys community service, Latin dancing with his beautiful wife and going on adventures with his two awesome sons.

Steve Naught, CIC
3736 Osage Beach Parkway
Osage Beach, MO 65065
Next to Golden Coral