Do terms like full coverage and liability-only make selecting auto insurance confusing? Do you ever wonder what full coverage insurance is and whether or not it’s worth the extra cost? There are many factors to consider when choosing your coverage, and understanding the value and benefits of each coverage type is essential to ensuring you have the protection you need. We are here to break down the differences and help you determine which type of protection is right for you. Continue reading at bobwheatoninsurance.com to learn more about the differences between full coverage auto insurance and liability.
The Risks of Minimum Coverage
Auto insurance is a legal requirement for every driver in Minnesota. The State of Minnesota has set forth a minimum amount of coverage, but many drivers choose to purchase additional protection that exceeds those limits so as to protect themselves and their assets in the event of an accident. Choosing to carry the minimum amount of coverage could leave you vulnerable to significant damages and financial losses.
Consider, for instance, the case of a driver who carries the Minnesota state minimum coverage only. She accidentally runs a red light, slamming into a brand new vehicle. She is sued for $30,000 to cover the total loss of the victim’s vehicle, as well as an additional $100,000 for unpaid medical bills and lost wages for each of the injured passengers. With only $10,000 in property damage liability and $60,000 in total bodily injury liability, the driver could face an out-of-pocket judgment for an additional $60,000. Not to mention, liability-only coverage does nothing to cover damages to the driver’s own vehicle.
It is worth noting that Minnesota has a no-fault policy, meaning that all drivers must also carry personal injury protection that pays for personal and household medical expenses and lost wages regardless of who was at-fault for an accident. Drivers must also carry uninsured and underinsured motorist protection that pays for medical claims that exceed the limits on your personal injury protection if you are injured by a driver who is uninsured or underinsured.
Full Coverage Auto Insurance
Have you considered how much it would cost to repair your vehicle after an accident? A full coverage auto insurance policy is designed to compensate you for your losses and shield you against major lawsuits.
What is full coverage?
Technically, full coverage does not exist. Instead, it is a term used to describe several different coverage types designed to provide you with more protection when combined with liability only coverage.
It allows you to build upon the minimum amount of insurance required in Minnesota by raising liability limits and adding additional coverage types, such as comprehensive and collision insurance.
Since higher limits and additional coverage is optional, you may wonder whether they are worth the extra cost. However, consider that the extra insurance can pay for damages to your vehicle if you are responsible for an accident, as well as repair or replacement costs if your vehicle is stolen or damaged by a covered non-accident event. It can also save the day if you are stranded on the side of the road or in need of temporary transportation while your vehicle is being repaired.
Though the specific coverage types offered will vary, your full coverage auto insurance policy can include:
- Rental Reimbursement
- Special Equipment Coverage (i.e. expensive stereo systems)
- Towing and Labor Expenses
Full Coverage Auto Insurance in Forest Lake, MN
If you are in search of full coverage insurance or would like to speak with an agent about your coverage options, contact Wheaton Insurance. We work for you – not the insurer – to find quality protection at a competitive price you can afford. Call us today to request your free quote. We look forward to serving you soon.