WalletHub, Financial Company
@WalletHub
You need full coverage if your car is leased or financed. Full coverage car insurance is not required by law, but lenders and lessors generally want it, and it is a good idea to maintain full coverage if you cannot afford to repair or replace your car in the event of a total loss.
How to Decide if You Need Full Coverage
You should consider your car’s value and your location when deciding if you need full coverage. If you own your car outright but it’s particularly valuable, your full coverage premium is likely a good investment compared to the car’s worth.
Similarly, even if you could afford to repair or replace the vehicle, it’s smart to keep full coverage if you live in an area with frequent collisions or thefts. After all, full coverage usually refers to a policy that includes collision and comprehensive coverage in addition to the state’s minimum required insurance.
If you are trying to save on your premium but cannot drop full coverage, you might be able to raise your deductible, as long as it isn’t dictated by your insurer or lender. But bear in mind that you should always choose a deductible that you’ll be able to afford in the event of a claim.
People also ask
Does GEICO offer full coverage insurance?
Yes, GEICO offers full coverage car insurance. Full coverage from GEICO typically includes at least a state's minimum required car insurance coverage along with collision and comprehensive insurance to protect the policyholder's vehicle.
Full coverage car insurance from GEICO costs $2,886 per year, on average, and is more expensive than a liability-only policy since it provides more coverage.
Cost of GEICO Full Coverage by Driver's Age
| Driver | Annual Cost |
| ... | $5,236 per year |
When should you drop full coverage on your car?
You should drop full coverage insurance on your car when the cost of the insurance equals or exceeds the potential payout, should a covered event occur. You may also want to drop full coverage if you are willing to pay for repairs out of pocket, or if you would prefer to replace your vehicle if it’s damaged.
For example, an older car with high mileage may not be worth costly repairs, and you might want...
read full answer by WalletHub, Financial CompanyDo I need full coverage on a financed car?
Yes, you need full coverage on a financed car. Any reputable lender will require drivers with a financed vehicle to purchase comprehensive and collision insurance, in addition to the state’s minimum required car insurance coverage. Your contract with the lender might even require you to choose a specific deductible to ensure that you will be able to pay it if you file a claim.
Why You Need Full Coverage on a Financed Car
...
read full answer by WalletHub, Financial CompanyDid we answer your question?
Important Disclosures
Ad Disclosure: Certain offers that appear on this site originate from paying advertisers. For full transparency, here is a list of our current advertisers.
Advertising impacts how and where offers appear on this site (including, for example, the order in which they appear and their prevalence). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.
Advertising enables WalletHub to provide you proprietary tools, services, and content at no charge. Advertising does not impact WalletHub's editorial content including our best picks, reviews, ratings and opinions. Those are completely independent and not provided, commissioned, or endorsed by any company, as our editors follow a strict editorial policy.