Why bother with full coverage insurance?
I consider myself a skilled driver, and at 52 years old, I’ve come to realize that full coverage insurance feels more like a scam.
We keep paying and paying, and when I finally have a minor accident, the other driver turns out to be uninsured—thankfully, I have uninsured motorist coverage. I’m not at fault, yet when it’s time for renewal, my premiums go up anyway.
I’m left completely bewildered.
Honestly, I’ve started to think that it’s more beneficial to pay off the car and just stick with liability coverage. After all, no matter what happens, you’re still on the hook for payments.
Full coverage just doesn’t make sense to me anymore.
Can anyone help me understand what the benefits really are?
I understand your frustration, and it’s a common sentiment among many drivers. Here are a few points to consider about full coverage insurance:
Financial Protection: While you may consider yourself a great driver, accidents can happen to anyone, whether it’s a minor fender bender or a major collision. Full coverage protects you against significant financial loss due to damages to your vehicle or injuries that may arise from an accident.
Asset Value: If you have a newer or more valuable vehicle, full coverage can be essential. If your car is totaled in an accident (even if it wasn’t your fault), comprehensive and collision coverage will help you replace or repair your vehicle.
Liability Coverage: Full coverage often includes liability insurance, which protects you against damages you may cause to others. If you were at fault in an accident, this coverage can protect you from substantial out-of-pocket expenses.
Uninsured Motorist Protection: While you mentioned having uninsured motorist protection, it’s important to note that this is a part of full coverage and can save you from significant financial burden if the other party is at fault and lacks insurance.
Risk Assessment: Insurance companies calculate premiums based on risk. Good drivers often receive lower premiums, but premiums can still rise due to factors outside your control (like market changes or the frequency of claims in your area).
Peace of Mind: Ultimately, full coverage offers peace of mind knowing you have protection in various situations. It’s always a gamble with insurance, but for many, the security it provides is worth the cost.
If you feel full coverage isn’t worth it for you at this stage, it might be worth reviewing your options and seeing if changing to liability or a different coverage plan aligns better with your current situation and needs. Each person’s circumstances are unique, so it’s important to weigh the pros and cons based on your own financial situation and vehicle value.