Do You Need Full Coverage Insurance?
When deciding on whether you need full coverage car insurance, it’s best to first understand what exactly it is and how it works. Let’s say you’ve just purchased a brand-new car and you want to ensure that it is fully protected. Your state has minimum requirements for your auto insurance policy, and if you have a loan on your car or are leasing there may be even more needed coverage.
But, you want the best insurance coverage – that will cover you, your car, and provide the most coverage in case of an accident in which people are injured or property is damaged. Where do you start?
Full coverage isn’t exactly a car insurance coverage that you can buy and set limits on. It’s more a combination of several different types of coverages on top of your standard liability limits. So, what are all the coverages that make up a full coverage policy?
We're here to guide you through your options and help you find a cheaper car insurance policy along the way.
The Different Types of Full Coverage Auto Insurance
The 6 main car insurance coverages that can help build your policy are:
- Liability Coverage
- Collision Coverage
- Comprehensive Coverage
- Uninsured or Underinsured Motorist Protection
- Medical Payments Coverage (MedPay)
- Personal Injury Protection (PIP)
What is Liability Insurance Coverage?
Liability coverage protects you in the situation where you have caused injury to another driver or to his or her vehicle and/or property. This is the coverage that most states set a minimum requirement to and many drivers associate it as a standard or basic insurance policy. The amount of coverage that the policy will pay out to the driver or parties involved is established through the liability coverage limits.
Liability Coverage Limit Explanation
Coverage limits are displayed through three values, separated by slashes. For this example, we will be using the limits 100/300/100. This stands for $100,000/$300,000/$100,000.
The first number represents the maximum amount of coverage for bodily injury per person; the second represents the maximum coverage for bodily injury for all injuries related to a single accident; the third number represents the total coverage for property damage for a single accident.
These are all payouts to the other party or parties involved in which you are at fault. If property damage or bodily injury costs exceed these limits, then you will be responsible to cover the remaining balance. If you can’t cover these out of pocket costs, you may face further litigation from the other parties involved.
Collision VS Comprehensive: Which Provides the Best Coverage?
When you’re searching for a reliable full coverage policy, the two most important coverages that you’ll be comparing are collision and comprehensive. We’ve noticed that many drivers are confused about what these coverages protect against, and the differences between them. We’re here to help explain!
How Does Your Vehicle Match Up?
We have analyzed rates from 10 of the most popular vehicles in the U.S. to show the price differences between state minimum and full coverage. We compared customer’s rates from state minimum policies against full coverage policies. The standard state minimum coverage varies state by state but for full coverage, we set coverage levels for liability to 100k/300k/100k, comprehensive deductible to $1000, collision deductible to $1000, and $100k of uninsured motorist protection. See how your rates compare.
|Make & Model||State Minimum||Full Coverage|
|Dodge Ram 1500||$1,488||$3,453|