Everyone knows that having car insurance is a must, but there is always the question of how much is enough. Navigating the insurance world can be tricky, and one asset that can become a huge expense when not properly covered is your car. As with many things in life there are different levels to car insurance. So where do you stand when it comes to picking the right one for you?
Full-Coverage Car Insurance
Technically, there is no such thing as full-coverage car insurance. Instead, it’s a term used to describe the highest level of coverage for your vehicle. When you are fully covered, you’ll have a full spectrum policy. The coverage would include:
- No-fault insurance or state-required liability
- Collision
- Comprehensive
No-fault/state liability covers property damage and bodily injury in collisions you cause, while collision covers the cost of fixing damages your vehicle sustains during a collision. Comprehensive coverage covers damages that don’t occur during an accident, like theft or vandalism.
The Benefits of Full-Coverage Car Insurance
While it’s true that you’re never 100% covered, full-coverage keeps you pretty protected. One of the main benefits of full-coverage car insurance is the assurance that damage will be repaired without a lot of extra out-of-pocket costs. Just because you have car insurance doesn’t mean the insurance company has to cover everything—which is why selecting full-coverage can add an extra layer of protection against unwanted financial surprises.
Another benefit is having coverage for non-collision damage. Make sure to read the fine print, but the right full coverage policy will secure you against wild weather, animals and vandalism. One of the most popular benefits of full coverage is having everything inside your car insured as well—like your cell phone, guitar, brand new kicks or luggage.
Insurance Add-Ons
Again, it’s a helpful reminder that full-coverage insurance doesn’t necessarily cover everything. That’s where add-ons come in. You can select from additional coverages to make your car even more fully covered. Some of these add-ons include:
- Emergency road service – It’s there when you need someone to help change a tire or gas you up
- Towing – Covers the costly expense of towing your vehicle
- Rental reimbursement – Provides a vehicle when your car is in for repairs
- Uninsured and underinsured motorist – If you’re in an accident with a person who is under- or uninsured, this will make sure all your repair costs are covered
- Medical payments – Pay for your medical costs, even if you were at fault
- Gap insurance – This is ideal for expensive cars—it will pay the balance of what you owe beyond the estimated cash value
- Other things to look into are glass coverage and OEM endorsement
What Coverage is Right for You?
One of the hardest things about insurance is justifying the monthly payment. What if you never need it? What if you paid that higher price for nothing? Those are questions only you can answer. Many people appreciate the peace of mind having full-coverage car insurance can give you. Others have had to use it, and were grateful that they had it when they needed it most.
When choosing whether to get full coverage, ask yourself a few questions. What is the fair market value of your vehicle? Is it worth the price of full coverage? Look at your medical insurance and see what it covers. Your location is also a huge factor—do you live in a high car theft area? Is there a lot of vandalism? Are there frequent accidents? Your budget should play a role, and a good rule of thumb is to get as good of insurance as you can afford without overstressing your finances.
If you choose to go the full-coverage route, make sure to read your documents carefully and ask questions if you have them.
Getting Car Insurance
It’s smart to shop around for car insurance and get quotes from different policy providers. One company may stand out against the rest for pricing and coverage. Remember that your driving record will determine your rates, so avoid incidents if possible. Ask potential policy holders about types of discounts as well. You may be able to get a lower rate for good grades, safety equipment or extra driver’s education.
Sometimes it feels that car insurance doesn’t do much more than put a dent in your wallet, but it can be an essential benefit if the unexpected happens, especially if you’re fully covered.
