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What Car Insurance Coverage Do I Need?
Decide how much liability coverage is enough for similar type of drivers.
Liability vs Full Coverage Auto Insurance
Liability Auto Insurance vs. Full Coverage Auto Insurance: Understanding the Differences
Auto insurance is the most important thing for every car owner. But that does not mean you need to pay more than the requirement. Your main goal should be, have your required protection by paying the exact amount of premiums.
When looking for auto insurance, many individuals get lost in trying to understand the different types available. Two main types of auto insurance are liability and full coverage. Knowing what type of insurance is needed demands both a thorough knowledge of a state's laws as well as an idea of what type of insurance a person's lifestyle requires.
What Is Liability Auto Insurance?
Liability insurance covers damage done, in the event of an accident, to another vehicle. Many, if not most, states have a minimum requirement for liability insurance. Although this insurance is both a necessary and good thing to have, keep in mind that it will cover only the damage done to another vehicle and not the damage is done to the insurance holder's vehicle. For a fuller idea of what kind of liability insurance to purchase, look into the different state requirements.
Minimum liability car insurance requirements by state
| State | Minimum car insurance limits |
| Alabama | Liability: 25/50/25 |
| Alaska | Liability: 50/100/25 |
| Arizona | Liability: 15/30/10 |
| Arkansas | Liability: 25/50/25 |
| California | Liability: 15/30/5 |
| Colorado | Liability: 25/50/15 |
| Connecticut | Liability: 20/40/10 UM/UIM BI: 20/40 |
| Delaware | Liability: 15/30/10 PIP: 15/30 |
| District of Columbia | Liability: 25/50/10 UM BI: 25/50 UMPD: $5,000 |
| Florida |
Liability: 10/20/10 |
| Georgia | Liability: 25/50/25 |
| Hawaii | Liability: 20/40/10 PIP or PPO: $10,000 |
| Idaho | Liability: 25/50/15 |
| Illinois | Liability: 25/50/20 UM BI: 25/50 |
| Indiana | Liability: 25/50/10 |
| Iowa | Liability: 20/40/15 |
| Kansas | Liability: 25/50/25 UM/UIM BI: 25/50 PIP: $4,500 medical/$900 work loss |
| Kentucky | Liability: 25/50/10 PIP: $10,000 |
| Louisiana | Liability: 15/30/25 |
| Maine | Liability: 50/100/25 UM/UIM BI: 50/100 Medical payments: $2,000 |
| Maryland | Liability: 30/60/15 UM/UIM BI: 30/60 UMPD: $15,000 PIP $2,500 |
| Massachusetts | Liability: 20/40/5 UM/UIM BI: 20/40 PIP: $8,000 |
| Michigan | Liability: 20/40/10 PIP: Medical and work loss PPI: $1,000,000 |
| Minnesota | Liability: 30/60/10 UM/UIM BI: 25/50 PIP: $40,000 |
| Mississippi | Liability: 25/50/25 |
| Missouri | Liability: 25/50/10 UM BI: 25/50 |
| Montana | Liability: 25/50/20 |
| Nebraska | Liability: 25/50/25 UM/UIM BI: 25/50 |
| Nevada | Liability: 15/30/10 |
| New Hampshire* | Liability: 25/50/25 UM/UIM BI: 25/50 Medical payments: $1,000 *Insurance not mandatory in New Hampshire |
| New Jersey | Liability: 15/30/5 (standard policy) UM/UIM BI: 15/30 UMPD: $5,000 PIP: $15,000 |
| New Mexico | Liability: 25/50/10 |
| New York | Liability: 25/50/10 UM BI: 25/50 PIP: $50,000 |
| North Carolina | Liability: 30/60/25 UM BI: 30/60 UMPD: $25,000 |
| North Dakota | Liability: 25/50/25 UM/UIM BI: 25/50 PIP: $30,000 |
| Ohio | Liability: 25/50/25 |
| Oklahoma | Liability: 25/50/25 |
| Oregon | Liability: 25/50/20 UM BI: 25/50 PIP: $15,000 |
| Pennsylania | Liability: 15/30/5 First party benefits (PIP): $5,000 |
| Rhode Island | Liability: 25/50/25 |
| South Carolina | Liability: 25/50/25 UM BI: 25/50 UMPD: $25,000 |
| South Dakota | Liability: 25/50/25 UM/UIM BI: 25/50 |
| Tennessee | Liability: 25/50/15 |
| Texas | Liability: 30/60/25 |
| Utah | Liability: 25/65/15 PIP: $3,000 |
| Vermont | Liability: 25/50/10 UM/UIM BI: 50/100 UMPD: $10,000 |
| Virginia | Liability: 25/50/20 UM/UIM BI: 25/50 UMPD: $20,000 |
| Washington | Liability: 25/50/10 |
| West Virginia | Liability: 25/50/25 UM BI: 25/50 UMPD: $25,000 |
| Wisconsin | Liability: 25/50/10 UM BI: 25/50 |
| Wyoming | Liability: 25/50/20 |
Source: pciaa.net, www.iii.org.
What Is Full Coverage Auto Insurance?
Full coverage insurance covers both collision and comprehensive auto insurance. Collision insurance will, in the event of an accident with either another car or another object, pay for the damage done to your vehicle. Comprehensive covers damage done by vandalism, broken glass, and weather, and also provides coverage in the event of auto theft. Other things often covered by comprehensive include towing fees, paying for rental cars and medical bills, and uninsured motorist coverage. Once again, deciding on exactly what kind of full coverage insurance is needed will depend on the rules of the state as well as the requirements caused by lifestyle and the type of vehicle.
How much does full coverage cost?
| State | Liability Only - State Minimum | 50/100/50 BI/PD | Full Coverage $1,000 deductible | Full Coverage $500 deductible | Full Coverage $250 deductible |
|---|---|---|---|---|---|
| Alaska | $426 | $434 | $1,350 | $1,533 | $1,677 |
| Alabama | $638 | $695 | $1,772 | $2,003 | $2,194 |
| Arkansas | $616 | $678 | $1,717 | $1,921 | $2,089 |
| Arizona | $600 | $696 | $1,467 | $1,635 | $1,782 |
| California | $723 | $911 | $2,268 | $2,574 | $2,771 |
| Colorado | $646 | $725 | $1,598 | $1,783 | $1,938 |
| Connecticut | $1,097 | $1,278 | $2,270 | $2,424 | $2,555 |
| DC | $1,054 | $1,139 | $2,209 | $2,531 | $2,797 |
| Delaware | $1,520 | $1,553 | $2,528 | $2,816 | $3,021 |
| Florida | $1,058 | $1,372 | $2,410 | $2,548 | $2,680 |
| Georgia | $743 | $804 | $1,823 | $1,988 | $2,156 |
| Hawaii | $386 | $422 | $980 | $1,095 | $1,187 |
| Iowa | $403 | $451 | $1,177 | $1,347 | $1,539 |
| Idaho | $546 | $601 | $1,369 | $1,514 | $1,667 |
| Illinois | $543 | $602 | $1,307 | $1,499 | $1,649 |
| Indiana | $633 | $691 | $1,498 | $1,711 | $1,912 |
| Kansas | $526 | $581 | $1,372 | $1,603 | $1,783 |
| Kentucky | $607 | $663 | $1,641 | $1,814 | $1,937 |
| Louisiana | $909 | $1,143 | $2,626 | $2,819 | $2,988 |
| Massachusetts | $866 | $996 | $1,678 | $1,950 | $2,088 |
| Maryland | $958 | $1,023 | $1,795 | $2,003 | $2,163 |
| Maine | $513 | $519 | $1,192 | $1,367 | $1,524 |
| Michigan | $2,446 | $2,145 | $3,208 | $3,535 | $3,819 |
| Minnesota | $864 | $868 | $1,574 | $1,784 | $1,962 |
| Missouri | $506 | $576 | $1,355 | $1,534 | $1,708 |
| Mississippi | $639 | $701 | $1,684 | $1,856 | $1,995 |
| Montana | $467 | $502 | $1,698 | $1,987 | $2,189 |
| North Carolina | $385 | $426 | $918 | $979 | $1,030 |
| North Dakota | $512 | $527 | $1,475 | $1,793 | $2,053 |
| Nebraska | $472 | $508 | $1,269 | $1,480 | $1,659 |
| New Hampshire | $587 | $629 | $1,331 | $1,514 | $1,656 |
| New Jersey | $1,086 | $1,462 | $2,377 | $2,550 | $2,735 |
| New Mexico | $612 | $652 | $1,513 | $1,675 | $1,809 |
| Nevada | $641 | $786 | $1,636 | $1,770 | $1,891 |
| New York | $891 | $973 | $1,725 | $1,923 | $2,095 |
| Ohio | $579 | $602 | $1,235 | $1,392 | $1,524 |
| Oklahoma | $712 | $805 | $2,182 | $2,476 | $2,717 |
| Oregon | $1,007 | $1,072 | $1,697 | $1,855 | $1,989 |
| Pennsylvania | $560 | $626 | $1,427 | $1,614 | $1,772 |
| Rhode Island | $1,026 | $1,113 | $2,014 | $2,226 | $2,417 |
| South Carolina | $654 | $717 | $1,572 | $1,741 | $1,859 |
| South Dakota | $431 | $467 | $1,309 | $1,550 | $1,766 |
| Tennessee | $656 | $717 | $1,625 | $1,810 | $1,949 |
| Texas | $783 | $818 | $1,983 | $2,182 | $2,317 |
| Utah | $629 | $685 | $1,359 | $1,485 | $1,610 |
| Virginia | $536 | $600 | $1,275 | $1,418 | $1,541 |
| Vermont | $487 | $541 | $1,315 | $1,470 | $1,591 |
| Washington | $671 | $713 | $1,516 | $1,651 | $1,773 |
| Wisconsin | $578 | $653 | $1,649 | $1,874 | $2,123 |
| West Virginia | $669 | $773 | $1,633 | $1,886 | $2,072 |
| Wyoming | $410 | $429 | $1,345 | $1,587 | $1,792 |
When considering full coverage and liability auto insurance, car owners should think about a few things. First, they should take a look at their car:
- How old is it?
- What type of car is it?
- How much money will be spent in replacing or repairing a damaged or stolen vehicle?
Insurance needs to match the type of car. Don't get too much insurance for an old, beat up vehicle, or too little insurance for a beautiful, new, showcase model. Other things to consider include the deductible rate and the vehicle owner's lifestyle. All auto owners should keep in mind that while a cheap rate may seem desirable right now, if an accident happens, individuals may wish they had invested in a more expensive policy with more coverage. But don't settle for a too expensive policy, shop around and find the best deal possible.
Deciding To Switch From Full Coverage to Liability Only
To save yourself from paying off too much amount from your pocket at the time of an accident, you need to follow the certain insurance laws of your state. Car accidents are something that can make a poor individual bankrupt. To save money, some people want to leave the insurance coverage just because they don’t have the ability to afford it. But this is not the right way. The best way to save your money is to switch from full coverage to liability only. To start your processes just compare the quotes and offers from the different car insurance companies and calculate properly that from where you will get the safer coverage with a cheaper rate and go for the best one.
When You Can Drop Full Coverage Car Insurance
- If you get the clear title of your car, you can drop your full coverage insurance and go for liability only.
- If you don’t need to have the complete coverage than your requirement you can drop it because with the process you will be able to save some money easily.
- You can also drop the coverage if your car is old and it can be costly for you to carry out the full coverage and the premiums are sometimes more than the car value.
When Not to Drop Full Coverage Auto Insurance
- If you don’t have enough amounts of savings or fast cash to handle the expenses of an accident, don’t drop your full coverage terms.
- If a person still owes money for the car and the cost of the car is more than the replacement expenses that beyond the affordability of the person.
Expert:
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