Car insurance is almost always mandatory if you’re buying or leasing a vehicle, but the amount of insurance you want to invest in is completely up to you. While some drivers choose the least amount of insurance possible, others prefer to purchase as much insurance as possible in case any incidents occur with their car.
Even though full coverage car insurance costs more than a bare-bones policy, it may save you thousands of dollars in repair fees. Without coverage on all fronts, you might have to cover damage to your vehicle on your own. Even worse, if you get into an at-fault accident with another driver, you might have to cover most of the damages done to the other person’s car, as well as your own. Most Americans should pay extra for full coverage car insurance, especially those living in areas in which vehicles are higher risk, including crime-ridden cities or places in which abnormal weather is common.
What is full coverage car insurance?
Full coverage car insurance is not an official name for a car insurance policy, but rather auto insurance lingo. If you have full coverage, you are protected by comprehensive insurance, collision insurance, and liability insurance. Most insurance holders are required to have liability insurance, but many only opt for either comprehensive or collision insurance.
How much does full coverage insurance cost?
The cost of a full coverage insurance policy varies based on the car owner’s state of residence, driving record and other personal factors. A 30-year-old male with a clean driving history will pay less than a 16-year-old male, for instance.
Why would you need collision and comprehensive insurance?
You should pay for both collision and comprehensive car insurance if you live in a location in which natural disasters, crime or even wildlife such as deer are common. A lot of drivers only purchase collision insurance, as they see two-car accidents as the primary dangers to their vehicles, but other factors that are completely out of their control may be just as common. It’s not just fender benders putting your car at risk; hitting a deer or having expensive hardware stolen can cost more in repair and replacement fees. Even if you live in a location in which natural disasters or animal-related accidents aren’t common, comprehensive car insurance could be a lifesaver.
Is it worth it?
Let’s look at a scenario in which collision insurance is imperative. You get into an accident with another driver and both of you experience minor injuries. Without insurance, you’d need to pay for your injuries (and potentially the injuries of the other driver and his or her passengers if you are the one at fault), the repairs on your own vehicle and possibly the repairs on the other driver’s vehicle. Sounds like a lot, right? It is. With full coverage insurance, your injuries would be covered by your PIP (Personal Injury Protection) and your repairs and the repairs on the other vehicle would be covered by your collision insurance. In addition to the monthly premiums you’d be paying, all you would pay for this coverage is the cost of your deductible.
Now let’s look at an instance in which comprehensive insurance could save you money. You park your car in a parking lot for an extended period of time and when you return to your vehicle, you notice that a window has been smashed, your impressive GPS system has been taken, your airbags are gone and your hubcaps have been removed and stolen. If you don’t have comprehensive insurance, you’re probably freaking out. If you do have it, however, you can take a deep breath and call your insurance provider. You’ll need to pay the cost of your deductible, but other than that, your auto insurer should be able to cover the rest.
You might be thinking, What are the odds of this happening to me? Especially if you’ve never been in an accident or experienced a loss or disaster surrounding your vehicle, you might think getting your vehicle covered on all fronts isn’t completely necessary. Accidents happen, no matter how safe of a driver you are. Preparing for the worst is imperative. Full coverage car insurance could save you thousands of dollars in repairs if something happens to your vehicle. Though you’ll be paying more, it could be completely worth it.