What is full coverage auto insurance?
Full coverage auto insurance is a type of policy that typically combines several types of coverage to offer broader protection for drivers and their vehicles. Despite the name, "full coverage" doesn’t mean every possible risk is covered.
Instead, it generally refers to a combination of liability insurance, collision coverage, and comprehensive coverage.
What does full coverage insurance cover?
Liability insurance covers damages and injuries you may cause to others in an accident, while collision coverage pays for damages to your vehicle resulting from a crash with another vehicle or object. On the other hand, comprehensive coverage, protects against non-collision events such as theft, vandalism, fire, or damage from natural disasters.
It’s important to note that full coverage does not include things like roadside assistance, gap insurance, or uninsured motorist protection unless they are specifically added.
Is full coverage auto insurance required?
Full coverage requirements vary from situation to situation. The law does not require full coverage auto insurance—most states only mandate that drivers have a minimum amount of liability insurance, which varies by state.
However, if you have a car loan or lease, lenders often require you to have full coverage, as it offers a more complete level of financial protection for their investment.
Do I need full coverage insurance if my car is paid off?
Once you’ve paid off your car, you are no longer required to carry full coverage auto insurance unless it's mandated by your state (which is rare). However, deciding whether you should keep full coverage depends on several factors, including:
- Value of the Vehicle: If your car is older and its value has significantly depreciated, the cost of premiums and your deductible might outweigh what you’d get from an insurance claim.
- Risk Tolerance: Full coverage can provide peace of mind by protecting your car from various risks, including accidents, theft, and weather damage. If you prefer the extra security, keeping full coverage might be worth it, even after the car is paid off.
How do I get full coverage auto insurance?
When it comes to full coverage auto insurance, it’s important to work with a trusted insurance advisor who can help you evaluate your needs and find coverage options that fit your lifestyle and needs. At Leavitt Group Texas Select, our knowledgeable agents are here to guide you through the process.
Don't wait until it's too late—let us help you drive with confidence and security. Learn more about our auto insurance coverage options.
