There are just so many things that can happen while we are on the road driving our way home or to work. Accidents can happen in just so many ways which will have us think of all the possible ways to protect ourselves. Full insurance sounds interesting to address our needs to be fully equipped with all the protection against the problems an accident can give. However the term insurance is used in the industry to refer not to a kind of protection the term may imply.
The term insurance was first used by the people behind leasing and financing cars. The term refers to the Physical Damage coverage which comes in two types namely Comprehensive and Collision coverage. Full coverage is not a requirement however there are certain circumstances where you will have a great benefit if you are fully insured. If you bought your car through leasing or financing it is most likely that you will be required by your lender to get full insurance.
The Collision coverage may also be necessary for people driving new cars given that this type of full insurance pays for the damages your vehicle gets from an accident less the deductible you opted. Without the Collision coverage you will get all the money to pay for your car repair from your own pocket since the basic Liability coverage will only pay for the other party’s car repair expenses.
The Comprehensive coverage takes care of the car damages done by any other event aside from collision. Damages which can be brought about by storms or other natural disasters, theft, vandalism and the like are the ones covered by Comprehensive insurance. Again for cars financed or leased Comprehensive coverage is likely to be a requirement. Also people driving new cars are highly encouraged to get this type of coverage.
Comprehensive and Collision coverage can be both considered by drivers depending on their car’s status. Full insurance is not recommended for drivers of old cars for this type of insurance is limited to paying the cash value of the vehicle. Older cars have lesser actual value because their worth has depreciated for a long time. In deciding whether to get full insurance one must also consider other factors like how safe the neighborhood is for driving. Also it will help if drivers will assess the route they are mostly taking if it prone to accidents or not.
