The reasons to buy full coverage auto insurance

Buying a car is the second most expensive investment of your life, the first being a home. Therefore, to protect your investment from all potential perils, you must buy an auto insurance policy. Having minimum car insurance is mandatory to drive a car on road, in most US states. However, minimum insurance may not provide your car with maximum coverage. Therefore, for providing your investment with optimal protection, you must buy a full coverage or comprehensive auto insurance policy for your automobile.

Importance of comprehensive auto insurance

A full coverage or comprehensive auto insurance plan consists of multiple components. The components may include liability coverage and collision coverage.

• Liability coverage ? Having liability insurance for an automobile is compulsory in most of the US states. It provides essential coverage to the damaged property and injured person, in the event the policyholder is deemed to be liable for any accident. You?ll find 3 numbers in a liability insurance document. The numbers are typically put in the sequence like 100/200/50. It denotes the amounts covered by the insurance policy; personal injury/ property damages / medical expenses. For example, if you?re deemed for an accident, your liability insurance policy will provide the person whose property is harmed with up to 100,000 USD as personal injury compensation. He or she will also get up to 200,000 USD for the refurbishment of the property and up to 50,000 USD for potential medical expenses. However, being the policyholder, you won?t get any coverage through your liability insurance.

• Collision coverage ? Collision coverage will be in effect, if your car strikes anything like another car or a tree or a building. Damages occurred to your car due to that collision will be covered under collision insurance. However, it won?t provide any coverage, unless and until you pay stipulated amount of deductibles. The more you pay as deductible, the less you need to pay as premium. Your car is eligible to get collision coverage, if it is struck by someone uninsured.

• Other coverage ? Apart from liability coverage and collision coverage, a comprehensive auto insurance policy covers even more. If your car is damaged by some acts of God like a flood or a fire, or stolen or vandalized, then also you will get coverage through your full coverage auto insurance policy.

Buying a full coverage auto insurance policy for your car may cost you much. However, when it comes to protecting your investment, you must not compromise. Stay insured and drive smart.

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