Why should I even bother with full coverage insurance?
As someone who’s been driving for years and is now 52, I’ve come to realize that full coverage feels more like a scam than a safety net. I keep paying my premiums, only to find myself in a fender bender with a driver who has no insurance. Luckily, I have uninsured motorist coverage, but I wasn’t at fault.
Yet somehow, when my policy renews, my premiums go up. I’m honestly baffled by this.
At this point, I’m starting to think it might be smarter to pay off my car and just stick with liability coverage. It seems like no matter what, you’re going to end up shelling out money.
Can anyone explain to me the real benefit of having full coverage?
I understand your frustration with full coverage insurance, especially when you feel like you’ve been consistently paying without seeing the benefits. While it can seem like a scam at times, there are some reasons why many people still opt for full coverage, even great drivers like yourself.
Protection Against Significant Loss: Full coverage typically includes collision and comprehensive insurance, which can help cover the repair or replacement costs of your vehicle in case of accidents, theft, or natural disasters. If you were to get into a more serious accident, the costs can add up quickly—potentially much higher than the premiums over time.
Loan Requirements: If you’re financing or leasing a car, lenders usually require full coverage insurance. This protects their investment in the vehicle until it’s fully paid off.
Peace of Mind: Full coverage can provide peace of mind, knowing that you have financial protection regardless of the situation. Accidents can be stressful enough without the added worry of how you’ll pay for damage to your car or to someone else’s property.
Value of Your Vehicle: If your car is worth a significant amount, having full coverage could make sense. If something happened and your car was totaled, you wouldn’t want to be left with nothing without coverage to recoup some of your losses.
Potential Legal Costs: If you’re involved in an accident—even if you’re not at fault—you might still face legal costs or medical expenses. Full coverage can help mitigate those financial burdens.
It’s definitely worth shopping around for the best rates and considering your specific situation, including your vehicle’s value, your financial situation, and how much risk you’re willing to take on. Ultimately, you want to make a choice that aligns with your needs and peace of mind.