Full coverage car insurance offers extensive protection, but is it worth the extra cost? This guide explains when full coverage makes sense and when you might be better off with a basic policy.
What Does Full Coverage Include?
Full coverage typically consists of:
- Liability Insurance (Covers damage to others)
- Collision Insurance (Covers damage to your vehicle)
- Comprehensive Insurance (Covers theft, vandalism, and natural disasters)
When Is Full Coverage Worth It?
- If you have a new or expensive car
- If you live in an area prone to theft or natural disasters
- If you have a loan or lease on your vehicle (lenders usually require it)
When You Might Not Need Full Coverage
- If your car is older and its value is low
- If you can afford to repair or replace your car out of pocket
- If your premiums are higher than the car’s worth
Final Thoughts
Full coverage is beneficial for those with new or valuable cars, but if your vehicle is older, you might save money by dropping collision and comprehensive coverage.