Almost every state requires automobile owners to carry auto insurance. However, these laws only mandate liability insurance—this type of auto insurance policy only provides coverage in the event that you are found liable for an accident. With liability auto insurance, your auto insurance company will pay for the other driver's medical bills as well as the cost to repair or replace their vehicle. If you own a car, you may want to seriously consider an auto insurance policy that provides comprehensive and collision coverage in addition to liability coverage. There are a number of reasons to add collision and comprehensive coverage to your auto insurance policy, such as the following:
You Are Paying Off an Auto Loan
Since cars are expensive, a large number of people take out an auto loan in order to purchase an automobile. If you are currently paying off an auto loan, you should always have comprehensive and collision coverage included in your auto insurance policy. In fact, most auto loan lenders require people to carry this type of insurance coverage until the auto loan is paid in full and a person owns the vehicle free and clear. If you're planning on purchasing a car using an auto loan, make sure that you request auto insurance quotes that include collision and comprehensive coverage.
You Can't Afford to Replace Your Vehicle with Cash
When you have collision and comprehensive coverage included with your auto insurance policy, your insurance company will give you a check for the value of the car if it is a totaled in an accident that you are liable for or if your car is stolen. Few people have enough cash on hand to replace their vehicle unexpectedly, so comprehensive and collision coverage provides an important financial safety net for situations that you may have very little control over.
Peace of Mind
No one expects their car to sustain hundreds or thousands of dollars' worth of damage during a freak hailstorm or when a tree falls on the car, but these things can happen. If you only have liability coverage on your auto insurance policy and something like this happens, you are out of luck. But, when you invest in collision and comprehensive coverage, you can have the peace of mind of knowing that your insurance company will pay to have your car repaired, even if the damage is caused by an unlikely and unexpected scenario.
For more information, contact an auto insurance service.