When you are deciding on the right type of auto insurance, you might be wondering if you should get liability insurance or full coverage. Most states require at least liability coverage on any vehicle you drive, but there are full and comprehensive policies that include more coverage and more protection. Here are some of the top pros and cons of full coverage to help you decide.
Pro: It Covers Other Drivers
One of the biggest benefits to a full coverage insurance policy is that it often includes others who drive your car. This means if you are on vacation and leave your vehicle behind for your sister to use, she is covered in case she gets into a collision. This is different than liability insurance, which typically only covers you and your spouse.
Con: It Costs More
Naturally, a full coverage auto insurance policy is going to cost more. You are paying more for the extra services the policy provides: coverage if your vehicle is stolen, coverage to get major repairs (even if it is your fault), and coverage for other drivers. These are just some of the extra services you are paying for when you get full coverage. But even though full coverage costs more, you can still get a good deal if you compare different auto insurance quotes.
Pro: Car Rental Services Are Included
What if your vehicle brakes down and the repairs will take up to a week? In this case, you might need to rent a car to get to work and run your errands. Luckily, a full coverage policy often includes care rental services. You don’t need to pay an exorbitant fee for your rental car, because it is partially or completely covered by your auto insurance policy.
Con: Not All Extras Are Included
Some people forget to read between the lines and they assume that full coverage literally covers everything. Full coverage does not include all the extras you can add to your auto insurance policy. Full coverage offers more than liability, but some extras you still need to add on for a higher premium. For example, many full coverage policies include uninsured motorists, but not all of them. It may also not pay for gap insurance or towing services.
Pro: It is Recommended for Financed Cars
If you are going to buy a new or used car and use the dealership’s financing, they may require you to have full coverage. Not only is it often a requirement, but it is a good idea. You will still owe money on this car, so the last thing you want to do is pay for extra repairs or risk losing the car if it is still totaled. Even if you are not driving the car, you still have to pay your monthly payments until it is paid off. With full coverage, you have some help paying for extensive repairs.