Full Coverage Auto Insurance

When buying a car, you will likely find that auto loan providers require that you carry full coverage auto insurance. This protects their investment from loss in case your car is damaged or stolen. Here are a few facts about full coverage insurance and what it actually covers.

Despite its name, full coverage auto insurance doesn't cover every possible thing that can happen to your car. Maintenance and typical repairs, for instance, remain your responsibility. It also doesn't pay for bodily injury or damages caused to other people's property in the case of an accident. Also, of course, no auto insurance will pay the costs if you intentionally damage the vehicle.

Full Coverage Insurance Explained

What full coverage car insurance does do is cover the costs of damage to the insured car. It will even pay for the car's replacement in the event of heavy damage or the theft of the vehicle. Damage to your car doesn't have to come from road accidents or the negligence of others - the insurance will also pay for the cost of damage from things like storm damage or vandalism.

When you make a claim, your insurance provider may require you to work with certain auto shops to secure repairs. They will also likely have procedures in place for filing police reports and other required paperwork. This helps to keep the cost of premiums down and reduces fraud. With most reputable insurers, the process won't be overly complicated.

Pros and Cons of Full Coverage

Full coverage insurance has both pros and cons. The biggest con is its cost - owners of older vehicles often find that the expense of carrying this insurance is worth more than their car would be. Therefore, owners of low-value vehicles may find it best to get a different type of policy.

On the positive side, full coverage car insurance makes it extremely easy and convenient to have accident-related repairs done. Even the best drivers can have a tree fall on their car or suffer some other unfortunate event. With full coverage, you don't have to scrimp and save to deal with things like this. Because of this benefit, it's usually best to carry this type of policy as long as your car retains enough value to make it worthwhile.