Full coverage car insurance covers your vehicle as well as the other person involved in the accident.
What does full coverage car insurance consist of
It’s usually a combination of comprehensive insurance and collision insurance. Both of which will cover the bill of any damage towards your car. Then there’s liability insurance, liability will cover damage and / or injuries you may have caused to others.
Collision coverage will help pay to replace and / or repair your car if it’s damaged in an accident / collision with another automobile. Collision insurance will protect your car and property damage liability will help pay for damage you to others vehicles.
Comprehensive coverage will help pay to repair and / or replace your vehicle if it is stolen and / or damaged by various things like natural disasters, vandalism, or animal damage.
Both comprehensive and collision coverage each have deductibles and limitations. So please reach out to us if you have questions about your policy.
Do I need full coverage on a financed car?
Yes, if you still have a loan on your vehicle you will be required to carry full coverage. When you finance a vehicle the lien holder owns the asset until you pay it off. It gives them leverage on the type of insurance you carry.
Minimum coverage for a financed car;
Minimum coverage varies by state. Below we will go over only California.
Bodily injury liability coverage: $15,000 per person / $30,000 per accident minimum
Property damage liability coverage: $5,000 minimum
Uninsured motorist bodily injury coverage: $15,000 per person / $30,000 per accident minimum
Uninsured motorist property damage coverage: $3,500 minimum
In conclusion;
You need full coverage if you still have a lien on your vehicle. When you pay it off, you can go a different route. If you have additional questions, please give us a call. We’d love to hear from you;)
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