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Is Full Coverage Car Insurance Required for Financed Vehicles?

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Do You Need Full Coverage on a Financed Car in San Diego, CA

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Vehicle financing makes it easier to handle this major purchase, and being able to secure a loan could be what you need to be able to buy your dream car. During the car-buying process, one of the biggest questions you’ll need to consider is what type of insurance to get for your new vehicle. Auto insurance coverage comes in several different forms. Liability insurance covers repairs and other financial costs incurred by someone you hit in an accident. Full coverage insurance adds additional protection by covering your car repairs if you were at fault for the accident. Knowing why you need full coverage can help you understand the importance of upgrading your auto insurance when you buy a car.

Stick to Your Loan Agreement

In most cases, you won’t have a choice regarding which level of coverage you purchase when you get financing for a car. The majority of lenders require you to carry full coverage car insurance as part of the loan agreement. This is put in place to protect their investment in your vehicle, since some people might not pay off their loans if their cars are totaled, and lenders can’t recoup their costs on vehicles that no longer function.

Make Paying for Repairs Easier

You may also prefer to be able to fix your car without suffering a huge hit to your bank account. After an accident, you may already be dealing with tremendous stress. The last thing you need to worry about is paying to get your car fixed. Full coverage insurance makes those expensive car repairs more affordable so you have less to worry about.

Continue to Work to Pay for Your Car

A catastrophic car accident could leave you facing even more damage to your financial standing. Being without a car could keep you from being able to get to work. As someone with a car loan and other bills to pay, you could quickly end up in dire financial straits if you can’t drive to your workplace. Depending on your policy, you might be eligible for rental car assistance to help you get to work while your car is being repaired. Fixing your car faster can also help you get back to work without having to miss too many days.

Maintain the Value of Your Vehicle After an Accident

Your car is an investment, and you’ll want to know you can sell it to someone else once you no longer want to drive it yourself. With good car insurance, you won’t have to make decisions such as whether or not to get a major dent repaired. Being able to fix your car properly means you’ll be able to get the most money you can when you’re ready to sell it as a used vehicle or trade it in for a new car.

Whether you need reliable, affordable auto coverage or dependable business, homeowners, or renters insurance, turn to Altra Insurance Services. For high-quality coverage and outstanding customer service, reach out to our experienced agents. Give us a call today at (800) 719-9972 to learn how you can save money on all your insurance needs.

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