As a driver, you’re only required to carry auto liability insurance. However, other situations may require you to carry more than the state-required minimum coverage. At Taake Insurance Agency, our team knows that understanding auto insurance can be confusing. It’s not easy to know what type of coverage you need. We’re here to help our Columbia, IL residents understand and explore their options.

State-Required Auto Insurance Coverage

All states require drivers to carry liability insurance. Liability insurance provides coverage for any accident where you’re deemed at fault. However, it doesn’t cover any personal injuries that you may incur. It also doesn’t cover any damage to your vehicle or personal property. Any insurance agent can help you determine if liability insurance is enough for your personal situation. If you have a car loan, lenders usually require you to carry full coverage auto insurance. 

I just paid off my late-model car. Do I still need full auto insurance coverage?

Most lenders require you to carry full coverage auto insurance if you’re financing your car. Liability coverage isn’t enough. However, many drivers are uncertain about continuing full coverage auto insurance once they’ve paid their car loan in full.

More often than not, if you own a late-model car, you should continue to carry full coverage auto insurance. Especially if you can’t afford to pay for auto accident repairs out of pocket. Generally speaking, many insurance companies recommend continuing to carry full coverage if your car’s value exceeds the cost of your deductible and your full coverage auto insurance policy. Many late-model car owners couldn’t replace their cars without a full coverage auto insurance policy. If you have questions regarding how much auto insurance you need, call us. We can help you explore your options.