3 Reasons It Is Worth It To Get Full Coverage On Your Vehicle
When people talk about full coverage, they may be referring to collision and comprehensive coverage. Collision coverage can pay to fix your vehicle if you are the responsible party for an accident. Collision coverage will also pay to fix your vehicle if it is damaged due to hitting another object, like a tree or a building. Comprehensive coverage is designed to pay to fix or replace your car if it is damaged outside of a collision-based accident, such as by a hails storm, or if is damaged via vandalism.
Full coverage, which includes collision and comprehensive coverage, as well as your primary liability coverage as required by your state, can cost more than just basic coverage. Full coverage may not be for everyone. However, there are certain situations where it may be worth paying for full coverage.
1. Own an Expensive or New Vehicle
If you own an expensive or new vehicle, it can make sense to pay for full coverage. One way to tell is by adding up the cost of your premium for a few months with the cost of a deductible should you get into an accident, and then subtract that cost from the value of your vehicle. If the result is more than you could afford to pay out-of-pocket to fix or replace your car, it is worth it to pay for full coverage.
2. Have a Loan on the Vehicle
If you have a loan on your vehicle, you don't have much choice when it comes to full coverage insurance. Many auto loan providers require individuals to carry full coverage on their car as a condition of issuing a loan. This requirement is designed to protect the collateral on your loan for your lender.
If you have an auto loan, you should consider getting gap insurance as well, so if your vehicle is damaged, and you owe more on the vehicle than it is worth, your insurance can take care of that balance for you.
3. Drive in Heavy Traffic
If most of your driving is done in heavy traffic, it can be worthwhile to carry full insurance. If you drive in heavy traffic regularly, there is a higher chance you could get into an accident. Just a moment of distraction can lead to a read-end accident that could be ruled your fault, and without full coverage, you would be left with a damaged vehicle.
If you own a new or expensive vehicle, have an auto loan on your car, or drive in heavy traffic regularly, you should consider paying the extra for full insurance coverage. Contact an insurance company for more information on affordable car insurance.