When you insure your Toyota Highlander, you have some choices to make. Not every policy is the same, and the type of coverage you select for your vehicle is important. You could choose to purchase a full coverage policy that protects you in most situations. Or you could go with the state-mandated minimum and pay less each month.
The lower premiums that come with liability-only insurance are tempting. While you might save money in the short run, you also face the risk of paying out of pocket after an accident. Having full coverage protects you against the claims of other drivers while also paying for your own losses.
The difference between these types of policies is only one of the factors that influence the cost of your car insurance. An experienced agent can help you understand what to expect to pay each month.
The primary reason to select full coverage auto insurance is to avoid the risk of paying out of pocket if you are in an accident. This type of policy can pay for your own losses as well as for any damage you do to other drivers. Full coverage car insurance offers liability, comprehensive, and collision coverage.
Liability insurance protects you from third-party claims. In other words, it pays for any damage you cause to other drivers when you are at fault for a crash. Liability insurance generally covers bodily injuries and property damage.
Collision insurance is used to pay property damage claims following a collision. This could be a collision with another driver, a pedestrian, or a fixed object. Collision insurance is different than comprehensive coverage, which pays for your other property damage claims. This coverage includes things like hail damage or vandalism.
State Minimum Liability
On the opposite end of the spectrum is state minimum liability insurance. This is the least amount of car insurance you can purchase and lawfully drive on public roads. Minimum insurance is generally only liability coverage.
Each state sets its own minimum insurance requirements. For example, Missouri requires drivers to carry at least $25,000 for bodily injuries per person, $50,000 for bodily injuries per accident, and $25,000 for property damage per accident.
Missouri also requires uninsured motorist coverage, which is a good deal regardless of whether your state requires it or not.