You have decisions to make when it is time to purchase insurance for your Dodge muscle car. You can often save money by only purchasing the minimum liability insurance required under the law. However, you could also choose to protect yourself even more with full coverage policies.
The type of policy you choose will partially determine what you pay each month for car insurance. However, there are other factors that go into determining what your policy is going to cost each month.
When you purchase full coverage car insurance, you can expect to pay more each month compared to minimum liability coverage. While this is a notable downside, it is important to understand the major benefits that come with full coverage.
A full coverage policy includes three different types of insurance coverage. This policy not only pays for your losses in an accident, but it can also cover the damage you cause to other motorists when you are at fault for a crash.
In total, three different types of coverage come with these policies: liability, comprehensive, and collision. Liability coverage is what is mandated by the state, and it pays for property damage and bodily injuries for other parties when you are responsible for an accident.
Collision coverage — as the name suggests — pays for your losses when you collide with someone or something. This includes collisions with other vehicles or fixed objects. Finally, comprehensive coverage pays for damage that does not occur in a collision, for example, when a limb falls on your parked vehicle.
State Minimum Liability
Instead of paying for full coverage, you have the option to select the minimum level of liability insurance allowed by law. Every state requires motorists to carry liability insurance to provide compensation for drivers when they are faultless in an accident. While these policies are cheaper than full coverage, they do not provide anything for your own losses in a crash.
Each state has its own approach to liability insurance. Generally, the law requires drivers to have a minimum amount of coverage for bodily injuries per person, bodily injuries per accident, and property damage per accident. For example, Missouri requires drivers to carry $25,000 for injuries per person, $50,000 for injuries per accident, and $25,000 for property damage per accident. This state also requires uninsured motorist coverage, which is a cheap addition you should consider adding if your state does not require it.