When financing a car, is it typically sufficient to have only comprehensive and collision insurance, or do I also need to include uninsured motorist coverage, passenger insurance, and others? I recently financed a new car and understand that I need full coverage, but I’m unsure what that entails. I’ve been exploring insurance quotes, and it seems that if I opt for liability, collision, and comprehensive coverage with a high deductible, I can keep my payments quite affordable. Is this usually adequate when financing a vehicle? As long as I have liability, comprehensive, and collision coverage, does the deductible amount matter?
When I finance a car, do I usually just need to have the comprehensive and collision insurance or do I also need to have non-insured motorist Insurance, passenger insurance, etc?
When financing a car, you typically need to maintain full coverage, which generally includes liability, collision, and comprehensive insurance. Here’s a breakdown of what each type covers:
Liability Insurance: This covers damages to other vehicles or property if you’re at fault in an accident. It’s mandatory in most states.
Collision Insurance: This covers damage to your own car from a collision, regardless of who is at fault.
Comprehensive Insurance: This protects your vehicle against non-collision incidents, such as theft, vandalism, or natural disasters.
In most cases, lenders require you to have collision and comprehensive coverage to protect their investment in the car. The deductible amount refers to how much you will pay out of pocket before the insurance kicks in if you make a claim.
You might also want to consider additional coverage options:
While liability, collision, and comprehensive are usually the minimum required by lenders, adding uninsured motorist coverage and PIP can provide extra protection and peace of mind. It’s generally a good idea to check with your lender for their specific insurance requirements and consider your own needs for comprehensive protection.