When do I need full coverage?

Enter your Zip Code below to get a Free Quote. We suggest getting quotes from multiple companies to ensure you get the best rate. There is no obligation to purchase.

  • You could save 15% or more
  • 24 hour claims service
  • Get a FREE instant quote, today!
First, it’s important to understand that although you can certainly call up your car insurance provider and tell them you want a full coverage policy, full coverage insurance actually isn’t specific kind of auto insurance; rather, “full coverage insurance” is a phrase people use to describe an insurance policy that provides more than just your state’s minimum liability insurance requirements.

Second, be aware that you can tack on a variety of coverage types to your existing policy, but the two kinds of coverage that are most often associated with full coverage are:

  • Collision coverage, which covers your vehicle’s repair costs if you’re involved in a collision, and,
  • Comprehensive coverage, which covers your vehicle’s repair costs if it sustains damages from something other than a collision – most often vandalism, weather, and objects that aren’t other vehicles such as lamp posts and fences.

When to Buy Full Coverage Insurance

State’s mandate liability insurance requirements to make sure the party that isn’t at fault in a car accident receives compensation for bodily injuries and property damage incurred during the accident; collision and comprehensive coverage, on the other hand, is designed to protect the interests of the person (or entity) that owns the vehicle that becomes damaged.

Therefore, a full coverage policy is necessary when the owner of the vehicle wishes to thoroughly protect his or her investment.

Common instances in which full coverage is necessary (or just a smart idea) include when:

  • There’s a lien on the vehicle. Lienholders pretty much always require full coverage until the would-be owner pays off the auto loan and transfers the title.
  • The vehicle is leased. The reasoning here is the same as the reasoning for vehicles with liens; however, unless the driver outright buys the vehicle, odds are they’ll have to keep full coverage the entire time.
  • The vehicle is still fairly new and/or valuable. Usually, it costs more to repair or replace a new or valuable vehicle than it does an older vehicle. Without full coverage, the owner would have to pay those costs out of pocket.
  • The owner doesn’t have a significant savings account. Avoiding collision and comprehensive coverage when they’re not necessary might seem like a way to save money, but making monthly full coverage payments makes more sense if the vehicle becomes damaged or totaled and the owner doesn’t have money set aside to repair or replace it.
To learn more about purchasing full coverage, talk with your auto insurance provider.

Visitor Comments

No visitor comments posted. Post a comment

Post Comment for "When do I need full coverage?"

To post a comment for this article, simply complete the form below. Fields marked with an asterisk are required.

User Opinions

100% thumbs up 0% thumbs down (1 vote)

How would you rate this answer?



Thank you for rating this answer.

Continue
DMVAnswers.com (the Site) is a privately owned, for-profit Web site owned by OnlineGURU, Inc. The Site specifically disclaims any and all connection with any state bureau, division, or Department of Motor Vehicles, or any state or federal government agency. DMVAnswers.com does its best to get the correct information but does not claim responsibility for the accuracy of the information displayed herein. It is not complete or certified information. The information provided on DMVAnswers.com is not legal advice, DMVAnswers.com is not a lawyer referral service, and no attorney-client or confidential relationship is or should be formed by use of the site. Additionally, the Site expressly disclaims any and all liability for third party links or resources on the Site and any claims of negligence arising from same. For official information, please consult your state motor vehicle department.