Should I get full or minimum coverage?
Asked by: Evelyn Schamberger | Last update: May 31, 2025Score: 4.3/5 (68 votes)
Is minimum coverage worth it?
Note that your state's minimum car insurance requirements are just that — minimal coverage. It's always a good idea to carry more liability coverage than what you're legally required to so you're not left paying the difference. Bodily injury: 57% of Progressive customers choose more coverage than their state requires.
What are the disadvantages of full coverage?
Cons. Premiums for full coverage are higher. Full coverage, because it potentially will pay more if something goes wrong, is more expensive and thus could be harder to budget for than liability.
Is it cheaper to pay in full for insurance?
Generally, you'll pay less for your policy if you can pay in full. But if paying a large lump sum upfront would put you in a tight financial spot — say, leave you unable to pay your car insurance deductible — making car insurance monthly payments may be a better option for you.
At what car value should you drop full coverage?
Your vehicle holds a low value: As with collision, consider dropping comprehensive coverage if your vehicle's market value is lower than a few thousand dollars. Figure in your deductible as well and the potential insurance payout may not be worth the price of the coverage.
Q&A Should I carry liability only coverage or full coverage on my car? | SCOTT AGENCY INC.
When should you take off full coverage?
If your auto insurance premium equals 10% or more of your car's value, you might want to think about a Liability-only policy. For example, if the market value of your car is $5,000 and you're paying $500 or more per year for “full coverage” insurance, it may not be worth the cost. Your deductible.
What is a good coverage limit for car insurance?
Typical coverage amounts: Insurance experts recommend at least $100,000 per person and $300,000 per accident for bodily injuries, and $100,000 for property damage.
Why you should get full coverage insurance?
Auto insurance with full coverage pays out if your car is damaged, while minimum insurance typically only covers damage to another car or person. If you don't want to be stuck paying for repairs to your car — or wouldn't be able to afford paying for them — you may benefit from this extra coverage.
What is a good 6 month premium car insurance?
The average 6-month car insurance premium is $947 per year, but some insurers offer lower rates; Nationwide offers 6-month car insurance at $774.
Is buying more than minimum coverage insurance a waste of money?
Final answer: Buying more than minimum coverage insurance is not necessary and a waste of money is false because higher coverage limits protect against risks and expenses, reduce the risk of being underinsured, and provide adequate protection in unforeseen events.
What happens if I don't put full coverage on my car?
Having only the minimum liability required by your state with no additional coverage leaves a large gap when it comes to repairing your vehicle after an accident.
Why am I paying so much for full coverage insurance?
Driving record
Incidents such as accidents (even if you weren't at fault), speeding violations, reckless driving, and driving while intoxicated can increase premiums. If you've filed a claim in the past few years, this might also result in an increase to your premium.
When to drop collision insurance?
One general rule of thumb is to skip collision coverage for vehicles that are more than ten years old. Your collision premiums and your deductible are more than 10 percent of your vehicle's blue book value.
What is a good insurance coverage amount?
Getting insurance equal to your net worth means your policy should be able to cover the full cost of an accident without putting your home and other assets at risk. However, insurance companies limit the amount of liability coverage you can get in an auto policy.
What are the disadvantages of having full coverage car insurance?
The only real disadvantage of “full coverage” car insurance is the possibility that you may be paying for more car insurance than you need, given your vehicle's value and your financial situation.
Do I need comprehensive and collision?
Unlike property damage liability insurance (which covers damage to other people's property), collision and comprehensive insurance are optional in California.
Is a 6 month or 12 month insurance policy better?
A six-month car insurance policy is generally best if you prefer more flexibility, while a 12-month policy is best if you want to lock in insurance rates for a longer period. Here's what you need to know to make a smart decision.
Is Progressive or Geico better?
According to the J.D. Power 2024 U.S. Auto Claims Satisfaction Study, both companies scored below average for customer satisfaction. That said, Geico did score higher than Progressive, with 692 out of 1,000 compared to 672. Keep in mind that these are scores based on customer feedback.
Is 200 a month a lot for insurance?
Is $200 a lot for car insurance? Paying $200 per month is a little higher than average for car insurance. Nine states have average rates for full coverage that are higher than $200 per month, and no state has average rates that high for minimum coverage.
What insurance coverage is most important?
Maximize Liability Coverage
Most drivers should opt for auto insurance with the highest level of liability coverage available. Many should also buy additional liability coverage, which we'll discuss later on. Some states (like California) only require drivers to have as little as $30,000 in liability coverage.
Does full coverage cover at-fault accidents?
Full coverage car insurance covers the costs to repair damage to your vehicle in an at-fault accident. However, in most states, it doesn't include coverage for bodily injuries that you or your passengers sustained. In “no-fault” states, your auto insurance does cover your bodily injuries up to the limits purchased.
Does full coverage cover theft?
Car Theft Insurance: When Am I Entitled to Coverage? Downey drivers whose cars are stolen in Califonia will have car theft insurance if they have comprehensive coverage. That should cover you up to the Actual Cash Value (ACV) of your vehicle. If your car is damaged due to a break-in, you'll also be covered.
What is the 50% rule in insurance?
In California's personal injury cases, the concept of 50/50 liability applies when both parties are equally responsible for an accident or incident. This shared responsibility is also referred to as equal fault or shared fault, and it falls under the broader category of comparative fault.
What is the ideal insurance amount?
It's ideal to get a life cover 10-12 times your annual income that would take care of all these expenses along with inflation in your absence.