In the United States, before you are able to register your vehicle with you local DMV, you need to show proof that you are properly covered by third party liability. Now, the minimum requirements depend on each state law. However, basically, there will be minimum and maximum limits for bodily injury and death as well as a certain amount for property damage. If you think that this basic coverage is enough to secure your future and save you from sleepless nights, then you might be wrong. It is commonly advised that people who can afford to pay more should subscribe to full coverage car insurance. Better and more coverage means that in the event of an accident, you will never go broke paying off damages and lawsuits.
To complete a full coverage car insurance package, you need to also buy comprehensive, personal injury, and collision policies. Some states also advise or require uninsured/underinsured motorist coverage. Comprehensive insurance will pay off repairs on your car for damages brought about by natural and uncontrollable factors. Your insurer will cover the major repairs for damages caused by calamities such as hurricanes or even minor dents caused by a stone from nowhere. Collision, on the other hand, will reimburse you of repair costs on your car for damages where no one is at fault or it is not determined who caused the collision. Lastly, personal injury will cover your hospital expenses and will compensate you for lost income up to the limits. This also covers your passenger who also got hurt during the accident. The suggested uninsured/underinsured motorist coverage will make sure that you will be completely taken care of in case the third party’s liability policy is not enough for your expenses and lost income.
It is no wonder that full coverage car insurance can become an expensive product to invest on. By just looking at the list of coverage, one can deduce that this is not cheap at all. However, consider this an investment for your future. Moreover, do not be overwhelmed because there are actually ways to cut on costs while still paying for the value of your money.
Most insurers will provide you a quote for full coverage car insurance based on the risks you pose on the road. The number one factor is age. They also check on your driving history and records, the community you live in and your credit rating. If you have a positive rating and your records are clean, then you are most likely qualified for discounts.