When it comes to auto insurance, there is not a “one-size-fits-all” solution. Each auto insurance policy can be customized to meet the unique needs of the policy holder, as well as their budget. Liability coverage is mandatory in most states to drive legally. This type of insurance only covers the damage you may inflict on others while driving. It doesn’t cover any damage to your own vehicle. For this reason, if you finance your automobile, you are typically required to have full-coverage auto insurance that includes collision and comprehensive coverage as well as liability coverage.
“Full-coverage auto insurance” can be a confusing term because there isn’t one standard definition. You have to consider your property and assets, your risk tolerance and your budget for premiums. Then you must decide what type of limits and deductibles your full-coverage auto insurance policy will have. Fortunately, your insurance agent can help you navigate these options and arrive at the customized solution that best meets your unique situation, needs and budget.
Almost all full-coverage auto insurance policies include some collision and comprehensive coverages. Collision coverage will help repair your vehicle if it is damaged while on the road, whether an accident is your fault or not and whether the damage is caused by another vehicle or other object. Comprehensive coverage will also cover damage that occurs when your vehicle is not on the road, from events like vandalism, theft, flood or an animal. When choosing a full-coverage auto insurance policy, you can also consider additional options like roadside service and towing or rental reimbursement.