If you just have the required minimum, then any additional costs may be your responsibility and your loss.
To drive in the state of Missouri, you need to carry the mandatory minimum auto insurance coverage. The mandatory minimum is “liability insurance.” This is the type of insurance that will cover the other driver’s damages and injuries if you are in an accident and deemed at fault. It will also cover your injuries up to a specified amount, but it will not cover any costs of repairs or property loss that you sustain. If you just have the required minimum, then any additional costs may be your responsibility and your loss.
What is Collision Insurance?
Collision insurance is an additional policy coverage that you can take out to cover your own car if you are at fault in an accident. Fault is determined in Missouri through the theory of negligence. To be found at fault, it means that you either did something negligent and that led to the accident happening, or that you didn’t do something, and your failure to act was responsible for the accident. So if you are found negligent, then you are at fault. Collision insurance will ensure that even if you are at fault for an accident, your car will be covered and so will any additional property damage sustained.
If You Owe Money on Your Car
If you have a car that isn’t paid off yet and you get into an accident, and the vehicle is totaled, then you will still be obligated to pay for the money that you owe on the car. This means not only will you be minus a car, but you will continue to have to pay for a car that has been totaled. Depending on how much you owe, that can have a huge impact on your financial status. If you are financing your car at all, the additional cost of collision insurance is well worth it to avoid financial ruin.
You Have an Expensive Car
Even if you don’t owe a dime on your car, if the vehicle would be expensive to repair or to replace, then it is a good idea to add collision insurance. Although people often think about collision insurance as coverage for if they were in a minor fender bender, the reality is that if you are in an accident, the repairs are never inexpensive. Although you can live with a dent and not worry about fixing it, if you are in an accident where the car is not drivable if you don’t pay to have it repaired, that can be a disaster.
Many people opt out of getting collision insurance on their car to save money on the monthly premium. But the truth is that if something should happen and you get into a significant enough accident, not having the additional coverage can put you into some serious financial trouble. Before you decide not to fully cover yourself when driving, it is important to consider all the things that can go wrong to make sure you are protected.