Why should I bother with full coverage?
As a safe driver at 52 years old, I’ve come to realize that full coverage insurance feels like a scam.
I pay my premiums consistently, and then I end up in a minor accident where the other driver doesn’t have insurance. Thankfully, I have uninsured motorist coverage, but since I’m not at fault, it feels unjust that my premiums still increase when it’s time for renewal.
I’m honestly baffled.
At this point, I believe it might be more advantageous to pay off my car and just stick with liability coverage. It seems like no matter what happens, I’m still on the hook for expenses.
Full coverage doesn’t seem to make sense to me anymore.
Can someone clarify its benefits?
I understand your frustration with full coverage insurance, especially after seeing your premiums increase even when you consider yourself a great driver. Full coverage can sometimes feel like a financial burden, especially if you rarely use it. However, there are a few reasons why it might still be beneficial to consider:
Protection for Your Vehicle: Full coverage usually includes collision and comprehensive insurance. This means if you’re involved in an accident (even if you’re not at fault), your car repairs are covered. If you have a newer or more valuable vehicle, this can save you a significant amount of money in repairs or replacement.
Peace of Mind: Having full coverage can provide peace of mind. You may feel more secure knowing that you’re protected in various circumstances, such as theft, fire, or natural disasters, which are typically covered under comprehensive insurance.
Protection Against Uninsured Drivers: You’ve mentioned having uninsured motorist coverage, which is great. If you’re hit by an uninsured driver, this can help cover your medical expenses and losses. While it seems unfair that your premiums go up even when it’s not your fault, having this coverage can prevent financial strain.
Legal Requirements: In some states, lenders require full coverage on vehicles with loans. If you’re financing your car, you might not have a choice in this matter.
Cost-Benefit Analysis: While it might seem that just having liability could save you money, it’s important to consider the risk vs. reward. If you’re in an accident that’s your fault, your liability coverage will only help the other party, not you. If the costs exceed what you would have paid in premiums for full coverage, you could end up losing more.
Ultimately, it comes down to personal tolerance for risk and your financial situation. If you feel comfortable with liability coverage and think you can handle potential costs down the line, that may be a valid choice for you. It might also be wise to shop around for different insurance policies, as costs can vary significantly between providers.