When someone tells you they have liability only it usually means they do not have comprehensive and collision coverage on their car. The short answer: if there car is stolen or if they are in a wreck that is their fault they have to pay for everything on their own. They just lost a car and will get nothing for it. Or what ever damage was done in the wreck they are paying for all of it.
Another part of an auto policy is comprehensive and collision coverage. Some folks will refer to this part as having full coverage. These 2 coverages cover damages to your car. Comprehensive covers theft, vandalism, flood, falling trees, and hail. With comprehensive coverage you typically pick what deductible you want to cover out of your pocket. For example if you car is stolen, taken on a joy ride and $5,000 worth of damage was done, you would pay the first $500 (or $1,000 or whatever deductible you have) worth of damage and the insurance company would pay for the rest to get your car fixed. Typically the higher deductible you have the lower your premiums are. Why? Because you are less likely to make a claim.
Collision coverage is when you are at fault in an accident and your car needs to be repaired. You also have a deductible for this coverage. Typically it is the same amount as your comprehensive deductible. Collision coverage would cover the repairs to your car, after deductible, for hitting a tree, parked car, rear ending someone etc. If you do not get in wrecks very often and I mean once every 3 to 5 years or so, look into raising your deductible to $1,000 and see what the cost savings would be over a 5 year period. If you haven’t been in a wreck in 10 years and you have $250 deductibles, how much money could you have saved? It is beneficial for both you and the insurance company for you to have higher deductibles, just like it is to have higher liability limits.
Like most businesses we appreciate and highly value referrals. When a client or a friend refers someone to us we treat it as a huge compliment. A note that one of our clients sent:
Thanks Sharon, your guidance has been greatly helpful. I’ve appreciated your professional and efficient assistance since we’ve been with Hoffman Insurance. The side issue is that I’ve gotten used to this standard and when working with other agencies, there’s a large gap between you and the other agencies’ staff.