Do You Really Need Full Coverage?

Person QuestionA lot of people try to shrug off full coverage car insurance and say that you don’t need it. However, if you have a car that’s still financed you’re generally required to have it. The finance company wants to protect its investment. Even if you owe the car outright, it’s a good idea to have full coverage insurance. The reason behind that is that it’s very costly to fix a car if it’s been in a bad accident.

A wreck can cause thousands of dollars worth of damage, and most people don’t have the money to get their car repaired. Keep in mind that full coverage insurance should really depend on the value of the car.

If it’s only valued at a couple thousand dollars because it’s very old and high mileage, you really don’t need full coverage insurance. If, on the other hand, the car is valued at five to ten thousand dollars or more, paying that little bit extra for full coverage insurance ensures that you won’t have to pay much out of pocket if the car is wrecked. If the car is damaged beyond repair your insurance company will consider the car totaled and will give you a check for the value of the car. That’s a big help in being able to afford another car, so be aware of what your car is worth when deciding on full coverage insurance.

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