You need full coverage if your car is leased or financed. Full coverage car insurance is not mandatory in any state, but lenders and lessors generally require 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.
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