Do You Need Full Coverage Auto Insurance or Can You Do With Liability Coverage Only?

If your vehicle is old and not worth much, you may want to drop Collision Coverage and just have the state required minimum

Crashed Car / Do You Need Full Coverage Auto Insurance or Liability Coverage Only?
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February 20, 2017

Do you want to save money on auto insurance? Depending upon your situation, you might save a substantial amount of money on your auto insurance premium by dropping full coverage and carrying liability coverage only.

Full Coverage Auto Insurance Versus Liability

Liability insurance protects other people and property if you are at fault for a collision. Full coverage, or comprehensive coverage, will also pay for damages to your vehicle should you be responsible for a collision or if fault for a collision cannot be determined. Most finance companies in North Carolina require full coverage for as long as the vehicle is financed. Doing so protects the value of your vehicle should you be responsible for a total loss.

Use Your Car's Value To Determine if you need full coverage auto insurance

Generally, if you own a vehicle that is still worth a lot of money, you should have full coverage, also known as comprehensive or collision coverage. Full coverage auto insurance includes liability coverage. If your vehicle isn't worth much, you might consider liability coverage only.

Must Maintain state minimum auto insurance coverage

You must maintain at least liability insurance in North Carolina. Failure to do so will result in a revocation of your license plate and an inability to drive. Driving without insurance in North Carolina is a misdemeanor crime. North Carolina requires:

  • $30,000 for bodily injury liability, per person per accident
  • $60,000 of bodily injury liability total per accident
  • $25,000 of property damage liability, per accident

Dropping Coverage Is Always a Risk

Whenever you increase your auto insurance deductible or remove coverage altogether, you are increasing your risk should you suffer damages. The more auto insurance coverage you have, the less your risk. The trade off is that you'll end up spending more money.

Whatever decision you make, be sure that you understand the risks involved with your decision and always seek out your insurance agent if you have additional questions or need guidance.

Save Money On Auto Insurance

Are you looking to save money on your auto insurance coverage but aren't ready to drop full coverage? We have some helpful information to save money on auto insurance.

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