When it comes to car insurance, "full coverage" is a term that gets thrown around a lot. But what exactly does it mean? And is it always necessary to have comprehensive and collision coverage? In this blog post, we'll explore what full coverage entails, the differences between comprehensive and collision coverage, and when it might make sense to skip one or both of these options.
First, let's define what we mean by "full coverage." In general, full coverage refers to a combination of liability, comprehensive, and collision coverage. Liability coverage is typically required by law and helps cover the costs of damage or injuries you may cause to others in an accident. Comprehensive and collision coverage, on the other hand, are optional coverages that can help cover the costs of damage to your own vehicle.
So, what's the difference between comprehensive and collision coverage? Essentially, collision coverage is designed to cover damage to your vehicle in the event of a collision with another car or object. Comprehensive coverage, on the other hand, covers damage to your vehicle from non-collision events, such as theft, vandalism, or weather-related damage.
Now, let's discuss when it might make sense to skip one or both of these coverage options. In general, if you have an older car that's worth less than your deductible plus the cost of comprehensive and collision coverage combined, it may not be worth it to carry these coverages. Similarly, if you have enough savings to cover the cost of repairing or replacing your vehicle in the event of an accident, you may also be able to skip comprehensive and collision coverage.
However, it's important to keep in mind that skipping these coverages does come with risks. If you're in an accident that's your fault and you don't have collision coverage, you'll be responsible for paying for the repairs to your own vehicle. Similarly, if your car is stolen or damaged in a non-collision event and you don't have comprehensive coverage, you'll be on the hook for the cost of repairs or replacement.
In conclusion, "full coverage" typically refers to a combination of liability, comprehensive, and collision coverage. Comprehensive and collision coverage can be valuable options for protecting your own vehicle, but may not always be necessary, particularly if you have an older car or enough savings to cover potential damages. If you're unsure whether or not you need comprehensive and collision coverage, be sure to contact us a Noble Insurance Agency to evaluate your options and find the coverage that's right for you.