Start with what each coverage does
Auto insurance combines several coverage parts. The names and requirements vary by state, so review the declarations page rather than treating “full coverage” as a precise term.
Common coverage parts
- Bodily injury liability: eligible injuries you cause to others
- Property damage liability: eligible damage you cause to another person's property
- Collision: damage to the insured vehicle from a collision, subject to a deductible
- Comprehensive: certain non-collision losses such as theft, hail, falling objects, glass, or animal contact
- Uninsured or underinsured motorist: losses involving a driver with no insurance or insufficient limits, depending on state law and policy terms
- Medical payments or personal injury protection: eligible medical and related expenses, depending on the state
- Rental reimbursement and roadside assistance: optional convenience coverages with their own limits
Limits matter
A low liability limit can leave personal assets exposed after a serious crash. Compare the limit with realistic injury and property-damage costs, not only the minimum legal requirement.
Deductibles are a tradeoff
A higher collision or comprehensive deductible can reduce premium, but the policyholder must be able to pay that amount after a loss. Keep the deductible in emergency savings.
Review drivers and use
Household drivers, young drivers, commuting, delivery work, rideshare activity, vehicle modifications, garaging location, and annual mileage can affect coverage and eligibility. Update the insurer when circumstances change.