Choosing The Right Full Coverage Auto Insurance

Choosing the right full-coverage auto insurance can be a daunting task. It's important to do your research and understand the different types of insurance coverage available. Full-coverage auto insurance typically includes liability, collision, and comprehensive insurance, but it's important to note that there is no universally accepted definition of full-coverage car insurance. When deciding on full-coverage auto insurance, consider your financial situation, the value of your car, and your tolerance for risk. While full-coverage auto insurance offers more protection, it also comes at a higher cost. It's recommended to shop around, compare quotes, and look for discounts to find the best policy for your needs.

Comprehensive coverage

The cost of comprehensive coverage depends on factors such as your location, driving history, the year, make, and model of your car, and the coverage limits you choose.

Collision coverage

When deciding on collision coverage, consider the following:

• The cost of your car and the potential cost of repairs.
• Your willingness to pay for repairs under the amount of the deductible.
• A higher collision deductible means you will cover more of the repair costs when they arise, which lowers your monthly premium. A lower monthly premium is convenient but can put you at risk if a collision occurs.

Full coverage auto insurance usually refers to a combination of liability, comprehensive, and collision insurance. It provides coverage for most scenarios, including damage to your car from accidents, natural disasters, vandalism, or collisions with animals. While full coverage insurance is not legally required, it is often recommended for financial protection and may be mandatory if you have an auto loan or lease.

Liability coverage

When considering full-coverage auto insurance, it's important to understand what is meant by "full coverage". While there is no consensus on what constitutes "full coverage", it typically includes liability and physical damage coverages (comprehensive and collision). Liability coverage is mandatory in almost all states and covers damages or injuries you cause to another vehicle or person, up to a certain limit. Here are some key things to know about liability coverage:

Customizing Your Liability Coverage

When selecting liability coverage, you will need to choose a coverage limit, which is the maximum amount your policy will pay for injuries or property damage you cause to others. It's recommended to choose a liability limit that matches or exceeds your total net worth to adequately protect your assets. The specific coverage limits will depend on your state's requirements and your personal circumstances.

Benefits of Liability Coverage

Exclusions of Liability Coverage

It's important to note that liability coverage does not cover your own injuries or damage to your own property. It only applies when you are legally responsible for someone else's damages. To protect yourself and your vehicle, you may consider adding optional coverages such as collision and comprehensive insurance, which cover damage to your own vehicle.

Uninsured/underinsured motorist coverage

Uninsured motorist coverage becomes essential when you are hit by a driver with no auto insurance. On the other hand, underinsured motorist coverage comes into play when the at-fault driver doesn't have adequate insurance to compensate for the damages or injuries they caused. In both scenarios, you could be left paying for medical bills or vehicle repairs out of your own pocket without this coverage.

It's worth noting that some states may require a deductible for UMPD/UIMPD, but UMBI/UIMBI generally doesn't include a deductible. Additionally, this coverage typically extends to hit-and-run accidents, providing valuable protection in such situations.

When deciding on the insurance limits for uninsured/underinsured motorist coverage, consider matching the amount with your liability coverage limits. For property damage, you can select a limit close to the value of your vehicle, especially if you don't have collision coverage.

Personal injury protection

PIP is required in 15 states and Puerto Rico, including Delaware, Florida, Hawaii, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon, Pennsylvania, Utah, and Washington, D.C. In other states, it is either optional or not available. Minimum coverage requirements are set by state governments and can vary, with maximums typically set by insurance companies. While PIP provides valuable coverage, it does not cover all injury-related expenses. For example, if you cause an accident that results in injuries to others, you will need to rely on the bodily injury portion of your liability car insurance.

When considering whether to include PIP in your full-coverage auto insurance, it is important to understand the specific requirements and offerings in your state. While PIP provides comprehensive coverage for medical expenses and related costs, it may not be mandatory or available in all states. Additionally, the minimum and maximum coverage limits may vary, so it is essential to review the details of your policy to ensure you have adequate protection.

Frequently asked questions