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What Are The Pros And Cons Of Full-Coverage Auto Insurance?

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Auto insurance is a product you need if you drive or own a car. But did you know that you can customize your plan to suit your needs, budget, and desires? Everyone who buys a policy gets to customize it to their needs, and you can talk to an insurance agent to learn more about your options. One option is full-coverage insurance. Understanding its pros and cons can help determine if this is the right choice.

The pros

A full-coverage auto policy provides multiple forms of insurance for drivers and car owners. The first is liability coverage, which protects you against financial losses you cause to others. For example, another car might encounter damage if you collide with them. Your liability coverage pays the claim if you're responsible for the collision.

Additionally, full coverage gives you protection for your vehicle in several forms. Collision coverage protects you against damages you encounter from a collision you cause. Comprehensive protects you from other forms of damage you might encounter, such as hail damage or vandalism.

Full-coverage insurance also meets your lender's requirements. If you have a loan, the lender requires a full-coverage insurance plan. In addition, your full-coverage plan covers you if you experience a collision caused by an uninsured driver. Full coverage comes with uninsured insurance protection, which kicks in after an uninsured driver collides with you.

Fully protecting your car through full-coverage insurance is wise if you have a car loan. But it's also wise if the vehicle is valuable to you.

The cons

The primary downside of full-coverage auto insurance is the costs. It costs a lot more to protect your car with full coverage compared to liability-only insurance. The other con is that you might not have coverage for everything. For example, if you don't add gap coverage to your car insurance, you might owe money if you total your car. Gap coverage pays the difference between your car's loan balance and its value. If you don't have gap protection, you'll owe this money if you total the vehicle.

Choose the coverage you want

Full-coverage insurance is a great idea if you can afford it and want more protection. When you have full-coverage insurance, you have protection against most risks associated with driving and owning a vehicle. Talk to your agent to learn more about the coverage options and costs. Then, choose the right policy and coverage options for your situation.

Contact a local company to learn more about full coverage car insurance.