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 owners. 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 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
PIP: $10,000
BI liability not required by Florida but many carriers require 10/20

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?


StateLiability Only - State Minimum50/100/50 BI/PDFull Coverage $1,000 deductibleFull Coverage $500 deductibleFull 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 to 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 the 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 different car insurance company 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 owe money for the car and the cost of the car is more than the replacement expenses that beyond the affordability of the person.

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