What Coverage Does Your Car Really Need?

When it comes to car insurance, one of the most common (and most confusing) phrases people hear is “full coverage.” The truth is, there is no single policy called full coverage. Instead, auto insurance is made up of different types of coverage that work together to protect you, your vehicle, and your finances.

In this post, we’ll break down the core auto coverages, explain what they do, and help you decide what coverage your car really needs.

The Foundation: Liability Insurance

Liability insurance is required by law in most states and is the starting point for any auto insurance policy. It covers damage or injuries you cause to others if you’re at fault in an accident.

Bodily Injury Liability – Pays for medical expenses, lost wages, and legal costs if you injure someone else.

Property Damage Liability – Covers damage you cause to someone else’s property, such as their vehicle, fence, or building.

What liability does not cover: Your own vehicle or your own injuries.

Protecting Your Vehicle: Collision Coverage

Collision coverage helps pay to repair or replace your vehicle if it’s damaged in an accident, regardless of who is at fault. This includes accidents involving another car or objects like guardrails or poles.

This coverage is especially important if:

• Your car is newer or has a higher value

• You couldn’t easily afford to replace or repair your vehicle out of pocket

  
  

Coverage Beyond Accidents: Comprehensive Coverage

Comprehensive coverage protects your vehicle from non-collision losses, such as:

• Theft

• Fire

• Vandalism

• Falling objects

• Weather-related damage (hail, wind, flooding)

If something happens to your car while it’s parked or due to an event outside of your control, comprehensive coverage is what responds.

Other Important Coverages to Consider

Depending on your state and personal situation, additional coverages may be available or required:

• Medical Payments or Personal Injury Protection (PIP): Helps cover medical expenses for you and your passengers.

• Uninsured/Underinsured Motorist Coverage: Protects you if you’re hit by a driver with little or no insurance.

• Rental Reimbursement: Helps pay for a rental car while your vehicle is being repaired after a covered loss.

So, What Coverage Does Your Car Really Need?

The right combination of coverages depends on several factors:

Vehicle Value: If your car is older and has a low market value, you may decide that collision and comprehensive coverage are no longer cost-effective.

Loan or Lease Requirements: If your vehicle is financed or leased, your lender will typically require both collision and comprehensive coverage (and it may be smart to look into Gap Insurance as well!).

Budget: While adding coverage increases your premium, it can significantly reduce your financial risk after an accident or loss.

Risk Tolerance: Consider how comfortable you are paying for repairs or replacement out of pocket if something happens.

Example Scenarios

Scenario 1: You drive a 15-year-old vehicle with a low market value and no loan. You may choose liability coverage only.

Scenario 2: You recently purchased a newer vehicle or rely heavily on your car for daily transportation. Carrying liability, collision, and comprehensive coverage may make more sense.

Final Thoughts

Rather than asking if you have “full coverage,” it’s more important to understand what coverages you have and what risks they protect against. A well-built auto policy is one that fits your vehicle, your finances, and your lifestyle.

If you’d like help reviewing your current auto insurance or building a policy that truly meets your needs, give us a call. One of our licensed agents would be happy to walk you through your options.

(207) 363-7894 | www.tapleyagency.com | 300 York St . PO Box 808 . York, Maine 03909