The Difference Between Minimum and Full Auto Insurance Coverage

Though most states require drivers to carry auto insurance before they hit the road, each state has its own unique requirements. This means that not only will the amount of coverage you need vary by state, but the amount you’ll pay for that coverage will vary, too. Of course, this can make it more difficult to figure out exactly what kind of insurance policy will fit your car and your budget. Fortunately, we’re here to tell you everything you need to know about the differences between minimum and full coverage and how to find the best rates on it.

Do I need auto insurance?

Almost every state requires drivers to carry auto insurance, and drivers who get caught without it tend to face both legal and financial consequences. In fact, there are only two states in which it’s legal to drive without coverage: Virginia and New Hampshire. But even though it might seem tempting to move and avoid the expense of auto insurance altogether, drivers still face financial repercussions for getting into accidents in these states.

The Virginia Department of Motor Vehicles still requires drivers who choose to drive without insurance to pay a $500 fee. Additionally, in both Virginia and New Hampshire, drivers are still responsible for damages or injuries that may occur in an accident. If you’ve ever dealt with insurance before, you know that these expenses can really add up. Ultimately, drivers who opt out of an insurance policy can easily end up out more money than they save if they’re involved in an incident on the road.

The good news, though, is that auto insurance may be less expensive than you realize. Comparing quotes from multiple insurers is an easy way to make sure you’re getting the best rate and take advantage of discounts you didn’t realize you could get.

Can I just get the minimum auto insurance coverage required by my state?

As we mentioned before, each state has different requirements for minimum auto coverage. Auto insurance consists of a few different types of coverage. States may require a mix of four types of basic coverage: bodily injury liability, property damage liability, personal injury protection, and uninsured or underinsured motorist protection. Under each of these types of protection, auto insurance policies provide a certain amount of coverage per person or per accident (or both).

Typically, state minimum coverage requirements include liability insurance. These minimums are often denoted with numbers like “25/50/25” which signifies the amount your policy would provide in the event of an accident. In this example, it would mean the state requires your policy to cover up to $25,000 per person for bodily injury, $50,000 per accident for bodily injury, and $25,000 per accident for property damage.

However, the minimum liability amounts required aren’t always enough to cover expenses incurred. Drivers are responsible for expenses their insurance doesn’t cover, which again, can add up extremely quickly depending on the seriousness of the situation.

What counts as full coverage auto insurance?

There’s technically no single full coverage policy, but a combination of types of coverage can help drivers mitigate the risk of having too little coverage. So, “full coverage” would be a policy that protects drivers (physically and financially), the vehicle’s occupants, other vehicles and their passengers, and surrounding property in the event of an accident. Typically this includes liability insurance, collision insurance, and comprehensive insurance.

Though there are a few things full coverage doesn’t cover, it’s designed to provide the best possible coverage in the event of an incident. The level of coverage you purchase is up to you, but you may find that it’s more affordable than you think. Whether you’re shopping for the minimum state requirements or full coverage, make sure to compare quotes to ensure you’re getting the best rate at whatever level of coverage you need.