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Opting for full coverage car insurance can be a smart move, but it also has its downsides to consider, too. Getty Images
As car prices are rising, so too are the cost of insuring them. Higher costs for replacement parts and vehicle repairs are a primary driver of increasing premiums. According to the Bureau of Labor Statistics (BLS), insurance prices were 11.3% higher in December than the year prior, and if you live in certain states, your premiums could be as much as 50% steeper, leading to substantially higher insurance costs. As a result, many Americans are searching for ways to save on their auto insurance costs.
One way to do that might be to drop certain coverages from your policy. If you finance your vehicle, your lender or leasing company likely requires you to carry full coverage, which includes comprehensive, collision and liability coverage. However, if you own your car outright, you may be able to drop comprehensive and collision coverage and keep only liability insurance, which most states mandate.
Still, many drivers opt to keep extra protection. Removing comprehensive and collision insurance coverage from your policy could provide substantial savings, but is that even an option? Is it necessary to keep full coverage car insurance? Let’s take a closer look.
Find out how to save more on your car insurance policy today.
Pros of full coverage car insurance
Even if removing some of your full coverage policy saves you a pretty penny, you may opt to keep it for the key benefits it provides, such as:
Full coverage offers more protection
Liability-only insurance is certainly a more affordable option, but if you’re at fault for a car accident, you could be on the hook to pay for costly damages and medical bills. On the other hand, your insurer is much more likely to cover repair or replacement costs for your car if you carry full coverage protection.
Is full coverage car insurance necessary? Pros and cons drivers should know
