Carrying auto insurance is an essential part of driving a car. But what kind of auto insurance is required? It depends on several factors, including whether you have a car loan. Some drivers are required to have full coverage auto insurance, while others may only need liability insurance.

If you need help understanding the difference between these two types of auto insurance, the professionals at Einstein Insurance, serving Portland, OR, can assist you. We can answer your questions about auto insurance and help you decide which type of coverage is best for your needs.

What Is Liability-Only Auto Insurance?

Liability insurance pays to repair or replace the vehicle owned by the other driver if you cause an accident. However, liability auto insurance does not cover repairs or replacement for your own vehicle in the event of a collision.

What Is Full Coverage Auto Insurance?

Full coverage auto insurance is a combination of several types of auto insurance, including liability insurance, to provide the maximum amount of coverage for the driver.

Full coverage auto insurance is often required if you are financing a car with a loan. Lenders mandate this type of insurance to ensure the car will be repaired or replaced if it is damaged while the loan is being paid off.

What’s the Difference?

The primary difference between these two types of insurance is the amount of coverage provided. If you want comprehensive protection for your vehicle, full coverage is the better option. On the other hand, if you want to save money on your insurance and your vehicle isn’t worth much anymore, liability insurance may be sufficient.

Do you need auto insurance? Call the professionals at Einstein Insurance, serving Portland, OR, to get started today.