Auto insurance companies have two main choices when it comes to your insurance needs. You can choose from full coverage insurance or liability insurance.

Full coverage insurance requires the car insurance companies to cover both the damages to your car and any vehicle or object that you damage in a collision. This insurance covers your car even when you are not driving it. If you have an accident or loan your car to a neighbor that has an accident then usually the only part that you are required to pay for is the deductible.

Liability auto Insurance only allows for the damage property to be repaired. That means that if you run into a fence or another car the insurance company will only pay for the damage that you caused to the other property. They will not cover the cost of fixing your vehicle and you will still need to pay the deductible.

The main reason that people choose to have liability insurance is that it is the least expensive and is required by law. If both insurance policies cost the same amount of money then everyone would want to be fully covered.

There are other types of coverage out there too such as uninsured motorists that can cover you should a person hit your car with a car that is uninsured.

When you are contemplating the insurance policy that you should get, keep in mind the large expense that fixing a car can be if you are responsible for paying for the whole thing.