When is Full Coverage Car Insurance Required?

In most cases, drivers are only required to carry a minimum amount of liability insurance as determined by their state. These requirements vary depending on where you are, but generally include certain limits of bodily injury and property damage liability.

Full coverage car insurance is rarely required, but it can happen. If you have a car loan on a vehicle or are financing a car, a lender will usually require you to carry full coverage car insurance. On rare occasions, full coverage may be court mandated.

What Does Full Coverage Car Insurance Cover?

Most full coverage car insurance policies include:

• Comprehensive Coverage: Comprehensive coverage provides compensation for damages to the vehicle due to fire, wind, hail, lightning, smoke, theft, vandalism and other incidents not involving collision.
• Collision Coverage: Collision coverage provides compensation for damages to the vehicle due to collision with another vehicle or object.
• Liability: Liability insurance covers accidents of bodily injury and property damage the driver may cause someone else while operating the insured vehicle.
• Medical Payments: Medical payments coverage, also known as personal injury protection depending on where you live, provides compensation for injuries to the driver and their passengers after an accident, no matter who is at fault.
• Uninsured/Underinsured Motorist: This coverage provides compensation for accidents involving a driver not carrying insurance.

Full coverage typically comes with $100,000 per person for injuries, $300,000 per accident for injuries, $100,000 for property damage and a $500 deductible for both comprehensive and collision coverages.

How Much is Full Coverage Car Insurance?

There are many factors aside from coverage limits that can influence the cost of your car insurance, including your location. Premiums vary per state, but the average cost of full coverage car insurance in Texas is around $1,823 a year. This is over $1,000 higher than the average cost of state minimum in Texas, which is close to $538 a year. Keep in mind, however, that minimum liability requirements will not cover damage to your vehicle or injuries of you and your passengers after an accident, which means you would have to pay for expensive repairs and medical bills out of pocket.

Other factors that can influence your car insurance rates include your driving record, age, gender, credit score, claims history and the value of your vehicle. Whether you choose minimum coverage or full coverage, be sure to ask your insurance agent about discounts.

Also Read: What Happens When You Buy The Legal Minimum Of Auto Insurance?