How does a first-time car buyer know what coverage will be the best?

Since there isn't a loan, do I need full coverage? How do I know what liability limits to get? I bought my first car and will be picking it up tomorrow. It is a 2016 Ford Explorer and I was able to pay cash for it.

Answer provided by
Shannon Martin
Answered on Jun 25, 2021
Shannon is an expert in personal lines liability insurance with 13 + years of insurance industry experience. She also served as a special insurance liaison to AARP members for 6 of those years. She is a graduate of UL Lafayette and currently resides in NY with her family. Shannon is also an amateur juggler, ukulele player, and is a time travel paradox theory enthusiast.
“The first time you purchase insurance can feel daunting, but it doesn’t have to be! The easiest way to get insurance is to shop for car insurance quotes online. This way, you can see all of your options at one time.
Even though you don’t have a loan, a 2016 Ford still has a good amount of value to it. If the vehicle was in an accident and it was a total loss, would you be able to buy another car right away? If not, make sure to add comprehensive coverage and collision coverage to your policy. The most popular deductibles are $500 or $1000.
The liability limits are easy; the recommended amount to carry is 100/300/50. Some people may advise you to save money on insurance and carry just the state minimums.
Please don’t listen to them, that is a bad idea! The state minimums leave you open to lawsuits if you have an accident that exceeds the low limits they require.”

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