Most states in the US require the basic policy composing mainly of liability coverage. So probably, this is the main reason why you buy auto insurance in the first place. But this type of insurance covers for the damages or injury that you cause to others in case you are at-fault in an accident. Question is how about if during that accident your own property or you get damaged or injured? Do you have enough funds to cover the cost of damages for your newly purchased vehicle or for your medical bills? This is when cheap full coverage car insurance becomes handy.
While ‘full coverage auto insurance’ doesn’t necessarily carry all the other supplemental coverage or eliminates the deductible, at least this type of coverage protects you too in case of an accident in which you are the guilty driver. So what actually constitutes a full coverage?
With full coverage, it means you the policy carries both liability coverage (others) and the comprehensive and collision; also known as property damage coverage. The collision part of it pays for the damages in your vehicle in case of an at-fault incident; while the comprehensive aspect covers for the injuries caused by unforeseen acts, natural forces or the so-called ‘acts of God’ such as fire, water, hail, vandalism, and so forth.
Is it necessary for you personally to have the full coverage car insurance? By and large, it depends on the type, make and model of your vehicle (or the real value of your car), and on whether or not it is financed by your bank. Most banks would like to have both comp and collision coverage because naturally, they don’t want to be reimbursed in case you wreck your car in an accident.
You can also assess the current worth of your vehicle. For example, it may be wiser and cost-effective if you won’t pay extra for a later car model. Bottom line is you have to consider the possibilities in the future. Assess your personal risks and decide on the policy that covers those potential risks.
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