« Back to Home

Full Coverage Auto Insurance: Is It Right For You?

Posted on

Has the time come for you to purchase a new auto insurance policy, or perhaps renew your existing policy? If so, it is important for you to take a hard look at your insurance needs before deciding whether to purchase basic liability coverage or full coverage auto insurance. Taking the time to ask yourself the questions outlined below can help you to make this important decision.

How Much Is Your Vehicle Worth?

People often get confused when it comes to the value of their insurance coverage. This is because while many people think they can ensure a bigger payday by choosing a policy that offers more coverage, the truth is, all auto insurance policies will be limited by the value of your vehicle. Consequently, purchasing a large insurance policy to cover a vehicle with very little resale value will only result in you wasting money on high monthly premiums.

When deciding whether or not to make a larger investment in full coverage insurance, it is important for you to consider the resale value of your vehicle. If the cost of your annual insurance premiums is more than 15% of this value, you will likely find that you are better off maintaining basic liability coverage.

What Risks Are Your Vehicle Exposed To?

Full coverage auto insurance is designed to protect you against a variety of different threats, such as vandalism and theft. The more risks that your vehicle is exposed to, the higher your chances will be of actually needing your insurance coverage.

When choosing between liability and full coverage auto insurance, take a moment to perform your own risk assessment. Ask yourself questions such as:

  • Where is your vehicle parked during the day?
  • Is your vehicle regularly parked on the street?
  • Do you live in a high crime area?
  • Is your vehicle popular on the black market?

The answers to these questions can help you to determine whether or not your vehicle is truly at risk. If you find that your vehicle has several different risk factors, investing in full coverage insurance may prove to be a wise investment.

In Conclusion

Full coverage auto insurance can prove extremely beneficial for some drivers, however, this coverage will not be right for everyone. If you find that you are struggling with the task of assessing your own insurance needs, engaging the services of an insurance agent from a company like Kirby Soar Insurance can help you to perform this task and ultimately locate the perfect insurance policy for your needs.