When it comes to auto insurance, all policies are not created equal. There are many components of auto insurance. One thing that never changes is the requirement that all Kansas drivers carry a minimum amount of liability insurance, but what about all the other types of coverage? At Integrity Insurance Agency, we are often asked what makes full coverage auto insurance so much better than basic liability policies. Continue reading to find out why nearly every driver needs full coverage, hands-down.
Full Coverage Protects Your Investment
The term “Full Coverage Car Insurance” can be a bit misleading as there is no such thing as “Full Coverage Insurance”. Full coverage implies that everything will be covered 100% for any circumstance. The fact is, there is no insurance company that makes this promise.
What we know as “Full coverage” is actually a combination of collision and comprehensive insurance that is added to a basic liability policy. Together, they help pay for the repair or replacement of your vehicle after a covered accident or loss. This might include damage from a runaway shopping cart slamming into the side of your vehicle, a falling tree, or significant damage from a fender-bender.
A new vehicle is never a small or insignificant purchase. In 2015, the average cost of a brand-new vehicle was more than $33,000. Money like that can take years to save for or pay off. Could you afford to repair or replace your vehicle with your cash reserves if something were to happen to it? When you purchase full coverage auto insurance, you are selecting coverage that protects your investment. If you are involved in an accident or your car is damaged by other means, your only out-of-pocket cost to repair or replace your vehicle would be your deductible.
As you can imagine, removing full coverage on your car could cost you big. Consider that the primary reason most people remove full coverage from their policies is to save on auto insurance. Assuming a driver saves just $350 per year, the savings equal barely more than $1,000 in a three-year span. If a car is severely damaged, totaled or stolen during that time, the savings on premiums are likely not even close to enough money needed to repair or replace the vehicle.
Full Coverage Protects Your Lender
You may not be the only one interested in keeping your vehicle in tip-top shape. If you borrowed money from a lender to finance the purchase of your car, your loan agreement probably includes terms that require you to maintain full coverage auto insurance. Lenders use vehicles to secure the loans they provide. Should you ever default on your loan agreement, your lender may exercise the right to repossess your vehicle. Of course, it is in the best interest of the lender that your car remains in good condition – not damaged– in case it ever needs to be sold to pay off the balance of your loan.
Integrity Insurance Agency is located in Burlington and Topeka, Kansas. We help drivers like you better understand their auto insurance options. In addition to providing the state-required liability, PIP, uninsured motorist and underinsured motorist protection, we can also provide full-coverage options to protect your vehicle. For more information or to request your free quote, contact our office today. We look forward to serving you soon.