When financing or leasing a vehicle, your lender may use the term full coverage. That means that they require you to carry all-inclusive and collision, plus anything else your state requires. Liability coverage is mandatory in almost every state, while comprehensive risk and collision (physical damage) coverage are optional. However, lenders may have their own rules about what coverages they require.
Learn more about car insurance requirements by state and liability. In most cases, when an insurance company, agent, or lender refers to full-coverage car insurance, they usually refer to all-risk and collision insurance, in addition to any other coverage required by their state. The additional amount depends on many factors, such as the year, make and model of the vehicle you want to protect. In addition to the car insurance deductible you choose, the cost of comprehensive and collision coverage will decrease if you choose a higher deductible.
Keep in mind that a policy with extensive coverage may be more affordable than you think, since Progressive offers several discounts on car insurance that can help you get affordable car insurance with the right coverages for you. That's why it's also important to know how much car insurance you need, so as not to jeopardize your personal assets in the event of an accident. By requiring specific liability insurance for victims of an accident caused by you, they can receive financial help for injuries and property damage without seriously affecting their own financial well-being. A high deductible can save you more money on car insurance per policy period, but you could end up with high out-of-pocket costs if you file a claim.
However, drivers who choose not to purchase auto insurance must show that they have sufficient funds to meet the state's financial responsibility requirements (PDF) in the event that they cause an accident. When choosing car insurance coverages, always keep in mind how much you could pay for injuries, damages, repairs, or even a new car. This information is not an insurance policy, does not refer to any specific insurance policy, and does not modify any provision, limitation or exclusion that is expressly stated in any insurance policy. The main reason why car insurance is mandatory in almost every state is because of your personal liability (liability) if you cause an accident.
From liability insurance to medical payment coverage, there are all kinds of ways to protect yourself from the unexpected with car insurance. Comprehensive car insurance and collision insurance are also common types of car insurance coverage, although no state requires them.