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Is full coverage car insurance worth it?

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Insuring your car is the first and foremost thing to do once you bought your brand new car, but you also need to make a decision as to the type of insurance you wish to choose, is it third party liability, comprehensive plan or collision? Which will provide you better coverage?

What is full coverage?

Full coverage car insurance includes all the three, third party liability, comprehensive plan and collision. While third party liability protects a third person involved in an accident and any damage caused to their property in the accident, collision covers your car in the same accident or in a situation where your car crashed onto a pole or tree. Comprehensive plan covers everything from third part liability, property damage and any harm caused to your vehicle by unforeseen perils like hurricane, theft, stolen, natural calamities etc.

Recommended Read : Third party vs Full Cover Car Insurance

What full coverage does not cover?

Full coverage does not include roadside assistance,towing, labour, rental car coverage and other additional add-ons like racing, speed contests, use in a car sharing program, off-road use, catastrophes like war or nuclear contamination, destruction or damage caused by government or civic authorities, using vehicle for delivery or business purposes, intentional damage etc.

Why full coverage is worth it?

If your car is brand new and expensive, then taking a full coverage car insurance is worth it as it demands insurance against any accident or damage. But if it is relatively many years old, then taking a full coverage on it will be a total waste of money. Also if you have an emergency fund or savings that can help replace or repair your car then full coverage insurance is worth it. Lastly, there is always an option to compare full coverage with other insurance providers who might be able to offer you full coverage on a much lesser rate.

Why full coverage is not worth it?

But if you plan to cancel the full coverage insurance plan for your vehicle, then there is nothing left to it. Your vehicle is not insured against anything and there will be absolutely no coverage at all. Your insurance provider will only have to pay if your car encountered any accident by a third party during the policy tenure, other than that any damages, dents or repairs will not be covered under the full coverage car insurance or the liability coverage will not help you replace or fix your vehicle.

So we have to think if full coverage is actually beneficial for us and worth the money? There is actually no such insurance policy that will give coverage to you and your car in most situations. Depending on the age of your car, the model and the track record of the driver you may choose if you want a full coverage car insurance or not. But accidents are unlikely and unpredicted; anything can happen to anyone at any time. So make a wise decision considering these parameters.

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Ann Maria Cleetus took her Masters degree in Journalism after her graduation in Communicative English. She is passionate in writing. Ann writes for online magazines, websites, blogs, press releases for clients, newspapers etc. Ann Maia Cleetus left Marcomm job to concentrate in Writing.

3 COMMENTS

  1. If you are living in a metropolitan city which has its own set of traffic woes, your car is bound to get damaged atleast once, many a times with no fault of yours at all. In that case, your car insurance would work wonders. The damages will be aptly covered with you having to shell out little. And also, it covers many types of damages so its definitely worth to pay higher premiums and get many facilities. Better not take chances to save a few bucks which in the long run might turn more expensive.

  2. Putting all your insurance together into a package may make it cheaper, but does this apply for used cars that are very old? Can it be more expensive to buy insurance for an old/used car, than to pay day by day for any mishaps that come up. Of course, you should get insurance for your car no matter what, but for older used cars maybe it would be cheaper not to package your insurance like this? Any suggestions or replies would be appreciated…

  3. Full coverage insurance or not is a personal preference depending upon a lot of factors. It includes if the car is for personal or other usage. Is it a brand new car or a second- hand, the experience of the driver and no doubt the availabilty of the funds for getting the insurance.

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