Purchasing a new car or paying off an older one gives you an opportunity to review your current insurance policy. In some cases, you’ll have the option of choosing either liability or full coverage insurance, and knowing which one is the most beneficial for your circumstances can help you make the right decision.
Pro: Meet Lender Requirements
When you get an auto loan, the lender prefers to know they’ll receive the full value of their investment back if something were to happen to the vehicle. For this reason, you’ll likely find your lender requires you not only to get full coverage insurance but also to demonstrate proof you did.
Con: Pay a Higher Premium
With good things, there typically comes a cost. Of course, most people prefer to pay as little as possible for their car insurance San Diego, and full coverage does usually cost more than liability-only coverage. Fortunately, you’ll be able to see the point of paying a little more if you ever have an accident.
Pro: Avoid Being Solely Responsible for Paying Damages
Even a minor car accident can have devastating consequences for your finances. With full coverage insurance, you’ll be able to drive with confidence that any damage you cause to another person’s vehicle will be covered. Since full coverage auto insurance also includes coverage for injuries, you’ll be off the hook for having to pay for high medical bills as well.
Con: Potentially Face Higher Premiums After a Claim
You’ve probably heard filing a claim leads to higher insurance rates. This is true in some cases. If you’re in even one accident, your insurance company may deem you as being at higher risk for having another one. However, this isn’t always the case. Talk to your insurance company about what happens after an accident to fully understand whether or not this potential downside applies to your policy.
Pro: Get Protection for Multiple Types of Accidents
Accidents where the two parties communicate and handle the situation appropriately tend to be the norm. Yet there are some situations where you could be left on your own if you have liability-only coverage. For example, full coverage auto insurance may provide financial assistance if you experience a hit-and-run accident, where the other party leaves you without coverage from his or her policy. You might also need insurance if a tree branch falls on your car or you experience some other type of unforeseen weather calamity. Since these types of accidents tend to already be stressful enough, knowing you’ll be able to repair the damage to your car makes having full coverage insurance worth every extra penny you spend.
Whether you need reliable, affordable auto coverage or dependable business, homeowners, or auto insurance National City 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.