Is Full Coverage Insurance Necessary?

Many people are looking to save money on their car insurance, and one of the easy ways to do this is by taking away full coverage. Full coverage is usually considered to be insurance that not only has bodily injury liability and property damage liability but also comprehensive and collision coverage. Having full coverage increase yearly costs by anywhere between two to five hundred dollars.

There are a number of different factors to consider when debating whether or not to include full coverage. When cars are being leased, or are purchased through a loan, some companies require the driver to have both options. This should be the first consideration made when purchasing insurance as loan terms should be upheld.

The second consideration if the car is already owned is the depreciated value. Insurance companies will give the driver the depreciated value of the car when it is totaled or stolen. If the deductible is higher than the depreciated value there is no real point in having full coverage.


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