Insurance is such an important thing to have. You should not operate your personal vehicle without being properly insured. Because, not only is it against the law in most towns and states, but it's generally a great gamble. Because if you get into an auto accident, or you hurt someone, then you may be held personally liable to cover the damages.
Most states and towns employ a mandatory amount of insurance coverage that you should have on your vehicle. This is commonly referred to as liability. The state is saying that they want you to have a specific dollar amount in liability coverage available at all times, just in case you get into an accident.
While most auto insurance agencies do offer basic liability coverage for the state and town level, many also offer coverage plans that exceed basic liability. This is usually referred to as full coverage or partial coverage.
Depending on the type of accident you may get into, is what will determine the type of coverage that will kick in.
So, for example, if you are in a motor vehicle collision, then you might expect your auto insurance policy to cover you. But, on the other hand, if you just put your key in the ignition and then your car suddenly explodes, then your regular auto insurance policy may not cover you if you have just a basic auto insurance coverage plan.
You will generally pay significantly more for a full coverage plan than what you would pay for just having basic liability coverage.
If you are living in a small rural town where things are spread out, and you are driving an old clunker for a vehicle, then you might consider just carrying basic liability. Because, the car is old and worn and the population is less dense than a booming metro area.
On the other hand, if you are driving a more modern car, say less than 5 years old, and you live in a booming metro area, than you might want to consider full coverage. You may need to pay more for your policy, but it might just be worth the peace of mind you're gonna get. Because simply put, so much more is at stake.
A full coverage plan may reimburse you for vehicular repairs, and even offer you a higher insurance cash payout if you were to get into an accident.
Liability, on the other hand, will only pay out the very minimum amount set forth by the state's jurisdictional guidelines.
But, what should you choose? Should you opt for full coverage? This answer truly depends on many different factors. You should take many things into consideration before you set your mind in stone.
If you are sharing your vehicle with a teenage driver, then full coverage would make great sense. Because of the inexperience of this new driver, accidents are more prone to happening.
If you are an older driver, or you are sharing with a mature driver, then again, full coverage might make sound sense here.
You might want to save a few dollars, especially if you're working with a fixed income, but in the event of an accident, that fixed income is basically history! So, you want to make a sound decision and don't put yourself in financial jeopardy for just a few extra dollars more. That full coverage might be exactly what you need to operate with peace in mind.
To really determine what type of coverage you should opt for, you might consider shopping around for different car insurance agencies and comparing their plans side by side. Also, be sure to sit down with all other drivers in the house and discuss a plan that would make sense for everybody who will be behind the wheel.
Just remember to take your time and be mindful about your blind spots.
Oh, and always remember to buckle up!
Thank you for reading!
