The term “full insurance” coverage is misleading, because truth be told, no such thing as full insurance, in its complete sense, exists. It is simply another term for “physical damage” coverage. However, when compared to the benefits (and definitely the price) of this type of coverage, it may seem more complete, or more “full” than other types.
Physical Damage coverage comes in two types: the Comprehensive Coverage (Comp) and Collision Coverage (Coll). In both of these types of coverage, paying higher deductibles could considerably lessen what premiums you would have to pay and could save you much money as well. For instance, if you set your deductibles at $2,000, and your vehicle acquires damages amounting to $1,000, you would have to pay $1,000, with the remaining amount being paid by the insurance company itself.
Also, these are not required by the state, but as we shall see later, it may be wise to apply for Physical Damage coverage after all.
Collision Coverage, as the name implies, pays for damages done to your vehicle caused by collisions, less the deductible you choose. If the car you own is either leased or financed, it is likely that your company would require you to apply for such coverage. Those with newer models of vehicles would be wise to get such a coverage, since Collision Coverage is limited to the cash value of the vehicle. In the same way, it would not be as necessary to get Collision Coverage for an old vehicle.
Comprehensive Coverage is not required by state; one may actually opt not to apply for this. This type of coverage takes care of damages done to your vehicle other than collisions such as damages to one’s vehicle in the event that it is stolen, vandalized, damaged by natural disasters (floods, fires, etc.) or even by animals. It would serve you well to avail of such a coverage if your car is new, or of a newer model. As in Collision Coverage, financed or leased vehicles would most likely be required to have such a coverage.
In the end, the decision of whether to avail of full insurance coverage is up to your choice. However, when deciding what type of coverage to choose, be sure to think of all possible scenarios and evaluate, based on factors such as how prone your driving route is to accidents, or how safe your neighborhood is for your vehicle. Such factors will help you decide whether to get full insurance coverage or not.