Driving is a great responsibility. Accidents are very common and almost everyone will have an accident if they drive long enough. It is not only important that you drive safely to help prevent an accident, but it is important that you protect yourself in case of an accident as well. Insurance provides the protection you need. It can help to cover the costs of property damage and injuries from an accident. In most states, some level of insurance coverage is required by law.
When choosing insurance for your vehicle, it is important to understand the various types of coverage available. Many policies also come with various deductibles. Understanding these aspects of insurance can help you determine which option is best for you and your personal needs. Most states require at least liability insurance, however, full coverage can provide complete protection when you are on the road.
A full-coverage policy provides drivers with a combination of the various types of insurance to provide protection for you and your vehicle. This type of policy provides liability insurance, collision insurance, and comprehensive insurance. There are also additional types of coverage and deductible options available with these policies. Full coverage can provide coverage for collisions, theft, and other damages to your vehicle. It also helps to minimize your financial and legal exposure when involved in an accident.
Liability insurance is the type of insurance that most states require every driver to have. Each state has its own set minimum limits that a driver must carry to provide the proper protection when on the road. This insurance provides coverage for the other vehicle’s damage and injuries when you are at fault for the accident. The high costs of vehicle repair and medical bills can be financially ruinous. Liability insurance helps to pay those costs for you up to the limits of your policy. Unfortunately, this coverage does not pay for the damages to your own vehicle.
Collision insurance provides coverage for your vehicle in any type of accident. This includes those accidents where you are at fault. It provides coverage for collisions that do not include another vehicle as well. Your damages can be covered with accidents that involve animals, such as deer or other wildlife. It also provides coverage for collisions involving other property, such as mailboxes or other inanimate objects. This coverage does come with its own deductible that must be paid by you first before the other damages are covered.
A vehicle can be damaged by various other events that do not fall into the category of a collision. These damages are not covered by collision insurance. Fortunately, collision insurance is often coupled with comprehensive insurance. This insurance provides protection for those situations. It can provide protection when a vehicle is damaged due to a natural event, such as hail or a tree falling. It can even cover repairs in cases of theft and vandalism. This helps to protect your vehicle in almost any situation.
There are additional coverage options that can be added to an insurance policy to provide more protection when you are on the road. Uninsured/underinsured insurance offers coverage when the other driver is at fault but does not have enough or any insurance to cover the costs of the damages they caused. Additional options can include roadside assistance, car rental coverage, and OEM insurance. All of these are not normally included in a full coverage policy and should be discussed with your insurance agent.
Full Coverage Drivers
Full coverage insurance is a great way for drivers to protect themselves and their property from the various threats on the road. In cases where a vehicle is financed, full coverage may be required by the lending institution. Many lenders require full coverage to protect their investment in your loan. Without full coverage, a serious accident could leave you without a vehicle but still on the hook for the car loan.
For those who own their car without financing, full coverage may still be a good idea. A new or newer vehicle can cost $30,000 or more. This is a lot of money for anyone. If you wreck that vehicle, it can be a major financial burden to pay for the repairs or replacement out of pocket. Even if you are in a position to pay out of pocket, it is still an awfully large expenditure that did not need to be made. An insurance policy is far less than the cost of a replacement vehicle. It may be in your best interest to carry this protection.
Even if your vehicle is used and considerably less expensive than a newer vehicle to replace, full coverage may still be a better option. An accident can happen at any time. If you do not have the cash on hand to purchase a new vehicle, you may be unable to get around until you have enough to purchase the vehicle or pay for repairs. If you are unable to get to work, this may be impossible. Full coverage can protect you from this risk.
Keeping Full Coverage
As you reach the end of your financing agreement or as your vehicle gets older, you may consider whether to keep your full coverage. For some lower valued vehicles, it may not be cost-effective to maintain this coverage. The best way to determine this is to consider the value you would receive if you totaled your vehicle. You should also factor in the amount of your deductible on your policy.
The 10% rule is a fair way to consider if full coverage is a viable option for you. If your annual premium is more than 10% of the replacement value, then full coverage may not be the best option. For example, if your vehicle’s replacement value is $5000 and you have a $1000 deductible, you would only receive $4000 for your car. If your annual premium is more than $400, then it may be a better option to reduce to liability coverage and put the extra cash in an account to save in case of an accident.
Finding the Right Coverage
Knowing the right amount of insurance coverage, you need can be a confusing process. Far too often, drivers pay for way too much on their insurance. The best method for finding the best value on car insurance is to shop around and compare prices at various companies. Fortunately, there is an easy method for comparing different companies. Compare-Discounts.com allows you to easily compare quotes from many of the top insurance companies in one location. Simply enter some basic information on their website and choose the type of coverage you want. You can then review the various quotes and determine which is best for you and your situation.
Compare-Discounts.com can also provide you with information about the various discounts these companies offer. Some companies offer safe driver discounts to help lower your premium costs for your responsible driving habits. Some offer discounts for senior citizens. Compare-Discounts.com can direct you to the discounts to help you save even more on your policy. In most situations, full coverage insurance is the best option for any driver. It is not easy to come up with the money to replace your vehicle after an accident. Full coverage helps to keep you protected from this financial burden. Although no policy provides protection for every situation, full coverage comes close. Find the right insurance for you today at Compare-Discounts.com.