Full Coverage Auto Insurance: What’s Included and Who Should Buy It?

Full Coverage Auto Insurance

Full Coverage Auto Insurance

Whether you are a new driver or have had years of experience, it is important that you obtain car insurance to provide yourself with financial and legal protection in case of unforeseen events.

While most countries require drivers to get liability coverage by law, it may not be enough to cover all expenses, repair costs, and medical bills that may incur as a result of an accident, natural disaster, or theft. That’s why many people choose to purchase full coverage auto insurance instead to get even greater financial protection.

In general, full coverage car insurance is a type of insurance policy that combines several coverage together. Although it is not required by law, it can be very useful in certain circumstances to help you avoid paying out of pocket for common car insurance claims.

In this post, we outline everything you need to know about full coverage auto insurance and whether you should consider buying it.

What’s Included in Full Coverage Auto Insurance?

As already explained, the term “full coverage car insurance” doesn’t refer to a special policy type, but rather a combination of several coverage, most often a liability, collision, and comprehensive coverage. These three types of insurance coverage make for a solid foundation for a car insurance policy that will provide you with the best financial and legal protection you need.

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Depending on your location, you may be required to purchase additional coverage types, such as personal injury protection and uninsured motorist coverage. That’s why it is important to do research and find the best one that suits your needs and preferences.

For instance, if you live in Canada, click here to find out what types of coverage you can include in your full coverage auto insurance so you can get the right policy that suits your budget and needs.

Who Needs Full Coverage?

When it comes to determining who should obtain full coverage car insurance, there are certain drivers who will benefit the most from having it.

For example, you may need it if you financed your vehicle and still have a balance on your auto loan, or if you lease your car. This is because your lender technically owns your ride until you pay off your loan or your lease agreement ends. With full coverage, they will be paid in case your car gets damaged before your loan is paid off or return the vehicle when your lease ends.

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Other drivers who can benefit from having full coverage include:

  • Those who have a new or expensive car;
  • Those who regularly commute in heavy traffic;
  • Those who live in places with extreme weather conditions and high car theft rates;
  • Those who cannot afford to repair or replace their car if it’s damaged or stolen.

The Cost of Full Coverage!

Since full coverage auto insurance is a combination of several coverage, it can be significantly more expensive than basic coverage policies. In general, the liability portion of the full coverage policy will cost the most.

However, there are other factors that can also affect the overall price of full coverage auto insurance. Some of these include the types of coverage you choose to add, the limits, your vehicle’s year, make and model, and the deductibles you select.

For instance, most insurance providers would recommend their clients increase their deductibles so they can save more on their premiums. While it may be more expensive, you will get more benefits in the long run.

So, before purchasing full coverage auto insurance, it is important that you shop around and get quotes from multiple reputable insurance providers to customize a policy that best suits your budget and lifestyle.

Apply for Discounts to Save on Full Coverage!

Keep in mind that there are other things you can do to make the full coverage more affordable. One of these is to apply for any discounts you qualify for. Most insurance providers offer excellent discount options for drivers who:

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  • Have an excellent driving record with no accidents and traffic violations;
  • Install anti-theft or safety devices in their vehicles;
  • Take a driver’s education course;
  • Have a great credit score.

Final Thoughts

Although you may be required by law to obtain liability car insurance, it may not be enough to cover damages and expenses that may incur as a result of an accident, natural disaster, or theft. In fact, it is recommended that you obtain full coverage auto insurance instead to receive greater financial and legal protection in the case of unforeseen events.

Be sure to refer to our post and learn everything you need to know about this combination of coverage, including who should buy it and how much it costs.

About Aditi Singh 356 Articles
Aditi Singh is an independent content creator and money finance advisor for 5 years. She is recently added with Investment Pedia. Internet users are always welcome to put comments on her contributions.

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