WHAT IS FULL COVERAGE FOR CAR INSURANCE?
Every vehicle is Minnesota is required to have at least a minimum about of insurance to pay for damages if the vehicle is at fault in a car accident. There are four parts to this required auto insurance in MN: 1. liability (which pays for injury caused to a person if you are at fault), 2. property damage (to pay for damage to another vehicle or other property you cause), 3. PIP (to pay for medical bills if you are injured – $20,000 maximum in most cases), and 4. Uninsured/Underinsured (to provide you with some compensation if the other driver is at fault and not insured or does not have enough insurance. Those four types of insurance come with every auto insurance policy in Minnesota, no matter what. The amount of coverage can vary depending on what you select, but there will at least be a minimum about of coverage in every case, unless you are completely uninsured.
When people talk about automobile “full coverage,” they are generally referring to collision and comprehensive coverage. This coverage is optional in Minnesota, and the purpose is to pay for damage to your car if you are at fault in causing the crash, or if there is non-accident damage that occurs, e.g. a tree falls on your car and damages it. Full coverage can be great to have if you cause an accident or something happens to damage your car, or if even if you are hit by another car but that car is uninsured. However, since full coverage (collision/comprehensive) is not required in Minnesota, people will look at how much it costs and decide for themselves if they want to pay for it. Whether it makes sense to get full coverage for your car really depends on how much the insurance costs and how much your car is worth. If you are driving a $2,000 car, and collision/comprehensive coverage costs $500 per year, you might want to think twice about getting it. It really depends on your particular situation.
However, it is important to know that even if you don’t have full coverage, i.e. you only have liability coverage for your car, you are still entitled to many rights and compensation if you are injured in a car accident. For more information, call us and speak with a lawyer for a free consultation.