Auto insurance policies are designed to be as unique as their drivers. Yet, in general, plans can be broken into two main categories: full coverage and liability. While everyone needs liability, not all drivers require the extra protection provided by full coverage policies. Find out if you're ready to drop the added coverage with this helpful guide. 

What Does Full Coverage Entail?

Full coverage plans offer a broad level of protection for the policyholder's vehicle to prevent a financial burden because of an at-fault or no-fault incident. If you're deemed responsible for a vehicle accident, the collision aspect of the policy kicks in to effect to help cover repairs or even a replacement.

The comprehensive part of the auto insurance, on the other hand, extends to acts of nature, like hail or fire, as well as unknown perpetrators, like theft.  

What Does Liability Cover?

Liability insurance is primarily focused on costs related to other parties. These basic plans offer financial assistance related to medical and property damage costs in at-fault accidents.

In North Carolina, drivers are legally required to carry at least $25,000 in property damage coverage and $30,000 for bodily injury for one person or $60,000 for two or more people. However, none of these protections extend to your vehicle, so all repair costs are out-of-pocket. 

Which One Is Right for You?

Lenders are a main factor in determining whether a driver needs to maintain full coverage or not. Many auto loan providers require that owners carry full coverage throughout the duration of the loan. You also need to consider affordability.

While liability plans usually offer lower premiums, you could face significant repair costs. If you don't have the financial means to cover these expenses up front, then it may be more cost-effective to carry full coverage. 

Keep your vehicle and wallet protected with the help of ​MP Davis Insurance Agency in Randolph County, NC. For over 40 years, drivers across the Piedmont Triad Area have turned to the local agency for dependable protections. From motorcycle and RV to auto insurance, the team is committed to providing a personalized experience.  Learn more about your coverage options online and request an insurance quote today at (336) 498-7606.