Is full car insurance coverage worth it?

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It depends on whether or not drivers have significant assets they would like to be able to keep in their own names. They also may be concerned about the inheritance they would like to leave to their survivors. In these cases, full car insurance coverage would be worth it.

Finding cheap car insurance rates for your full car insurance coverage can be found very easily online. Not everyone has collected assets yet but they are hoping to be able to do so over the years. If these people do not have full car insurance coverage, their ability to accumulate any savings may be in jeopardy. Get started now by putting in your ZIP code and enjoy the  FREE car insurance search tool!

The Liability Coverage Requirement

With full car insurance coverage, drivers have the required liability insurance that will give them the ability to pay the medical bills when they injure someone in a car collision. The property damage liability coverage drivers also must procure helps them pay to have the vehicle they damage repaired. Generally, liability coverage is all that is required in most states.

What Happens When There Is Liability Coverage and When There Is Not

With liability coverage, people with assets are not in danger of having them taken away because they need to pay other people’s medical bills and property damage bills. In tort states, drivers who have been hurt or had their property damaged by another driver have the ability to sue the at-fault driver. If the judgment is larger enough, the at-fault driver may need to sell assets.

Those who are not yet financially well established can also be the victim of a lawsuit. Although they cannot pay the bills in full, the judge can have their wages garnished for several years until the debt has been paid.

Optional Car Insurance Coverage

The other part of full car insurance coverage is the portion that will cover the medical bills and damages done to the at-fault driver’s vehicle. After fault has been assigned for a collision, the at-fault driver’s car insurance company will pay third party bills. Because this is liability coverage, it will not apply to the at-fault driver.

Full car insurance coverage would be a very good option for those with assets and those without.

Those with assets do not necessarily want to spend their money on repairing or replacing their vehicles or paying their own and their passenger’s medical bills out-of-pocket. Full coverage will prevent them from having to do this.

Those who are not in a financial position to pay to have their cars replaced if they are incapable of being repaired will be without a vehicle. Full coverage would be even more important for drivers who do not have a large sum of money to pay the huge bills that can result from a car accident.

Types of Optional Car Insurance Coverage

The types of optional coverage that drivers can purchase under their full car insurance policy are:

  • Collision Coverage
  • Comprehensive Coverage
  • Uninsured/Underinsured Motorist Bodily Injury
  • Uninsured/Underinsured Motorist Property Damage
full car insurance coverage worth it

With collision coverage, it doesn’t matter who caused the collision; the car insurance company will take care of the policy holder’s repair bills minus the deductible in most cases. Uninsured/Underinsured Motorist coverage will pay the bills when the other person is at fault but has no means of paying the bills or does not have enough insurance to cover them fully.

The Definition of Uninsured and Underinsured

Uninsured motorists do not have an insurance company to pay the bills, and they may not have any assets to apply toward these bills. Underinsured motorists have purchased liability coverage in the minimum amounts required by their states, but this is not enough to pay all of the bills.

After the underinsured motorist’s car insurance company pays the amount required under the terms of the policy, it will stop paying even if the injured are generating more bills. The injured party can sue the at-fault driver, but this may not lead to the bills being paid in a timely fashion. With the underinsured motorist coverage, the bills will be paid right away.

Insuring a New Car

Full car insurance can be worth it when someone has a new car. If the car is being leased, the financing company will, most likely, require that the lessee purchase collision and comprehensive coverage. If the vehicle is not being leased, this coverage can still have advantages for new car owners.

In the event that new car owners cause an accident and the vehicle is very expensive to repair, these people may not be prepared to meet this expense. It’s at these times that car insurance companies would choose to consider the car a total loss and offer the policy holder a sum of money to replace the car. Without full car insurance coverage, the new car owner will have lost the new car and would not have the means to purchase a new one.

Insuring an Older Car

If the car is new, full coverage is worth it, but if the car is old, the owners can forgo full coverage. An older vehicle has depreciated so much that it would cost policy holders more to pay for the coverage over the years than they would receive back if the car is ever considered a total loss. For this reason, collision and comprehensive coverage are not generally suggested to people with older cars.

An Alternative to Car Insurance

People who have the financial means to make a deposit with the county judge or the comptroller can go without full coverage car insurance in some states.

Every state has laws about how people must prove that they will take financial responsibility if they cause an accident, and some states allow for people to leave the deposit rather than purchase a car insurance policy. For example, if someone has $50,000, this person can leave the deposit and drive freely without a car insurance policy at all.

Since the option above is not available to most people, it would be worth it to purchase a full coverage car insurance policy if the car is newer and they are not in a position to be able to pay for any necessary repairs after a collision.

How To Keep Car Insurance Premiums Lower

The reason that people will decide that it may not be worth it to purchase a full coverage car insurance policy is because they want to keep their car insurance bills as low as possible. Liability coverage is all that they really need to purchase in most cases, and since they are not planning to cause an accident, they believe that liability will be enough. Get started by entering in your ZIP code into our FREE car insurance search tool!

To help people make the decision to purchase a full car insurance policy, they will need to find a car insurance company that can offer them full coverage for a very reasonable price. After doing this, they will be able to purchase the policy in the same day if they want to!

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