When it comes to auto insurance coverage, you need to carry at least the state minimum to ensure you are meeting the legal requirements to be on the road. However, you may want more coverage than that.
With full coverage, you will enjoy collision, comprehensive, and liability coverage on your vehicle. Full coverage can be expensive, though, and isn't for everyone or every car, which is why it is important to know when full coverage is worth it.
Reason #1: You Own an Expensive Vehicle
If you own an expensive vehicle, repairing that vehicle would also be costly. Higher-end cars tend to have higher-end parts and often require more labor to fix, further driving up the cost of repairing the vehicle. Carrying full insurance will mean you only have to pay the deductible if your car is damaged.
Reason #2: You Have a Car Loan
If you have a car loan, be it you are just leasing the vehicle for a few years or paying off the loan with the hopes of entirely owning the vehicle someday, you may be required to have full coverage. Many loan providers require you to carry full coverage on your car as a way for the bank who is providing you with the loan or lease to protect their collateral on the loan.
Reason #3: You Are a Frequent Commuter
If you frequently commute long miles every day and drive in heavy traffic, you will want to carry full coverage. Being on the road for lots of hours and miles every week increases the chances of you getting into an accident. With full coverage, no matter whose fault the accident is, the damage will be covered.
Reason #4: You Have Extreme Weather
All damage to your vehicle is covered with full coverage, including weather-related damage, such as that caused by a high windstorm or by hail. If you live in an area where severe weather is typical, it is a good idea to carry full coverage. That way, if your vehicle suffers weather-related damage, you can have it fixed.
Reason #5: You Live in an Area With High Theft Rates
Some areas have higher theft rates of vehicles than others. Research the theft rate for vehicles in your area, and if it is high, get full coverage. With full coverage, if someone steals your car, and it isn't recovered, your insurance will pay to replace the vehicle.
Reason #6: You Have Low Funds for Repairs
If you couldn't easily pay to fix your vehicle if you got into an accident that was your fault, or if you couldn't easily buy a new vehicle if your vehicle got into an accident, it is a good idea to carry full coverage. Full coverage may be expensive, but it doesn't cost as much as replacing or fixing your vehicle on your own if it is damaged in a severe accident.
If you own a new vehicle, are carrying a loan, drive a lot during commuting hours, live somewhere with extreme weather or high theft rates, or don't have funds to replace your vehicle if it was seriously damaged, you should consider carrying full coverage on your car. For more information about auto insurance, contact a local insurance agency.