What Is Partial Insurance?

Insurance policies cover many different types of assets, such as your vehicle, your home and your health. The amount of coverage available to you depends on what you are approved for and what you wish to pay. "Partial insurance" describes insurance policies that do not include full coverage or only pay for a portion of the total bill when a claim is filed. Partial insurance policies are often available at a cheaper rate or under special circumstances.

Partial Health Insurance

Partial coverage for health insurance policies is available in conjunction with some income-based plans. With this type of health plan, the policy covers a partial amount of medial costs until an annual deductible is met. As the policyholder, you are responsible for paying the difference. Deductibles are determined based on income and family size, and plan options vary by state.

Partial Auto Insurance

Partial auto insurance is commonly called "liability insurance." This type of coverage is often less expensive than full coverage, but it only offers coverage to damage your car causes to other cars and property in an accident. Damage your car suffers is not covered with partial auto insurance. This type of auto insurance doesn't appeal to everyone; if you're driving an older vehicle that is paid off, you might find that the savings on insurance premiums are greater than the cost to replace the car.

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