What Is the Average Auto Insurance Coverage?
If every driver operated the same vehicle, had the same driving record and followed the same driving patterns, it would be fairly simple to identify the average auto insurance coverage. With so many variations, however, it can be difficult to ascertain the averages that are based on sound figures. Still, even with the infinite number of coverage possibilities, some selection combinations are more common than others.
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Liability Only
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Liability only is a common package selection among drivers with low fair market valued vehicles. The package is designed to only meet the state's requirements and not insure damages to vehicle. Depending on the state's mandated coverages, a liability only package includes coverages such as bodily injury and property damage, uninsured and underinsured motorist, personal injury protection, medical payments and tort.
Leased Coverages
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Many lease agreements require owners to maintain liability limits of at least 100/300/50, or $100,000 per person, $300,000 per accident and $50,000 for property damage. These higher limits help reduce the institution's risk of monetary loss. Leased vehicles must also be returned in the same condition as they were at the contract's inception, less the agreed upon miles. As a result, lessees are required to insure their vehicles against damage by carrying comprehensive and collision coverage.
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Physical Damage Packages
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The physical damage package, or full coverage, is similar to the lease coverages but with more leniency. This package includes liability, comprehensive and collision coverages, but the driver is not required to select higher liability limits. Policyholders have the option of selecting liability coverages as low as state minimums, though higher coverage is always recommended. Policyholders may also add rental reimbursement and roadside assistance options. These options are available with lease packages.
Considerations
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It is important that you secure the policy coverages that meet your individual needs. If you are unsure of your insurance requirements or unfamiliar with policy terms, speak with your insurance carrier or agent for assistance.
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