Movie Weblog

My Bank Says I Need Full Coverage-Auto Insurance, Why?

October 20, 2010

Your lender may have told you that you had to have full coverage auto insurance when you bought your new car. That may leave you wondering, what full coverage insurance is.

Full coverage-auto insurance describes collision and comprehensive coverage insurance.

Collision insurance will pay to repair any damage to your vehicle (less a deductible amount) when you are at fault in an accident. If you are not at fault, then the insurance of the person who is at fault will pay for the repair of your vehicle. There will be no deductible from the repair paid by someone else’s liability insurance.

Comprehensive insurance covers damage that is done to your vehicle by theft, breaking of glass or vandalism.

Auto loans often require that you have this insurance, but the state you live in will require that you have a certain amount of liability insurance. Each state has different laws regarding the amount of liability that you carry on your vehicle. Failure to purchase this insurance may cost you dearly. You can be fined, lose your license, or have your vehicle registration canceled. However the largest cost is that if you have an accident you will be responsible to repair the other vehicles involved in the accident, and for any medical bills the occupants of the other vehicle may have.

If you need to purchase full coverage-auto insurance, you will need to first request auto insurance quotes. An easy way to do this is to call your local agent. They can quote several different companies for you. To find an agent, search your hometown, for example auto insurance Cincinnati.Another way is to request these quotes online. There you will find websites with forms that ask for some basic information about you and the vehicles that you own. You give the information and submit the form. Within a few hours you should start to get auto insurance quotes sent to your e-mail box. Within a day, you should have three to four quotes.

You will want to compare those quotes in order to find the best insurance price available for your particular situation. You may find that the quotes vary by quite a bit, but as long as you are comparing the same coverage, you can choose the least expensive to save the most money.

Look in the e-mail for further contact information, but you may be able to complete the application and pay for insurance online. Then you will be able to print the proof of insurance and keep it with your vehicle.

When vehicles depreciate to below 2000 dollars, it is normally not worth the extra expense to carry full coverage insurance on the vehicle. By the time that the deductible is subtracted from any settlement after an accident, you will not even get as much as you pay annually for insurance.

Drive defensively to keep insurance costs low. Learn to watch out for the other person and avoid all accidents.

In addition, you will want to follow the laws of your state when driving. If you get a ticket for a moving violation while driving your car, it will increase the amount you pay for insurance.

About the author: Ken Henry has some great suggestions on finding the answers to your insurance questions. Get auto insurance rates from the best companies, plus get an exciting tip sheet on auto and home insurance