There are a few things to consider when selecting coverage. The age of the vehicle is one of them. Typically, if the car is over 10 years old, comprehensive and collision
coverage (aka full coverage
) are not recommended. The reason being, the amount you pay for the insurance is typically more than what would be paid out on the car in the event of a claim. This means that your car would not be covered for physical damage under your insurance policy. So in the event of an at-fault accident, single-vehicle accident, fire, theft or vandalism, your car will not be repaired. It may sound scary to not have that coverage but remember you don't want to pay for coverage when the payout would be less than your insurance. With that being said, if you are financing your vehicle the finance company may require comprehensive and collision to protect their interest in the vehicle. You would need to contact your finance company to find out their exact requirements.
As for what coverage would you get if you do not have full coverage? Liability
is required on every policy and will cover damages and injuries that you are responsible for, up to the limits you have. Each state has different requirements of what coverage and limits are required. In Missouri
, you are required to have:
- Bodily injury limits at $25,000 per person with a maximum of $50,000 per accident for injuries you cause to others
- Property damage limits of $10,00 per accident for damages that you cause to another car or property
- Uninsured Motorist Bodily Injury limits of $25,000 per person with a maximum of $50,000 per accident for your injuries caused by an uninsured driver.
Insurance is complicated and since this is your first time buying insurance, take a look at our site for different articles that help explain Insurance in Plain English
or just ask.