Living life to the fullest means living without regrets. If there were something you could do today to prevent yourself from future loss, would you do it? No one can predict the future, but there are steps you can take to avoid misfortune. When it comes to auto insurance, protecting yourself with full coverage means shielding yourself from the financial fallout of unexpected accidents in the future. Continue reading to find out more about full coverage auto insurance and why you could one day regret not having it.
What is “Full Coverage Car Insurance?”
Actually, there is no such thing as Full Coverage Car Insurance. Of all the insurance policies sold in the state of Wisconsin, not one of them will include that phrase. So what does it mean? It’s been a term that has been used for years that refers to a policy that includes physical damage coverage in the form of comprehensive and collision.
Consider this Scenario
The Insurance Information Institute reports that the average Wisconsin driver paid $335 for collision and comprehensive insurance in 2013. Now assume there was a Green Bay driver that same year who paid off the loan on his sedan, which still had a resale value of $10,000. Since the driver no longer had a lender requiring full coverage, he dropped his comprehensive and collision insurance to save a little cash. Two years later, he hydroplanes into the back of another vehicle, damaging his front-end. The car is totaled and will need to be replaced.
If he had kept his full coverage, he might only need to pay a small deductible toward the purchase of another vehicle. Since he dropped the coverage, however, he must pay for another vehicle out of his own pocket. Despite having saved $670 in unpaid insurance premiums over the previous two years (and taking into account further vehicle depreciation and the deductible he would have paid for full coverage); he is still taking a loss of several thousand dollars.
Risk Tolerance vs. Affordability
Drivers must evaluate their risk tolerance and weigh it against the desire to save a few bucks. If you are thinking about dropping your full coverage auto insurance, ask yourself a few questions first:
- Do I have enough money in my emergency fund to pay for major body work if my car is damaged?
- Do I have enough money or am I willing to take out a loan to purchase another vehicle if my car is totaled or stolen?
- Is the amount I’m saving on premiums enough to offset or justify the complete loss of my investment in my vehicle?
In many cases, the answer to these questions is “no.” The truth is, a vehicle is a major purchase. Even if your car is paid for in full, it probably still carries significant value. That is why it is never a good idea to drop full coverage just because you can. After all, collision and comprehensive insurance are about protecting your money – nothing else.
Ways to Save on Full Coverage Auto Insurance
Here at Pagel & Associates Insurance Agency, we know Green Bay area drivers are always on the lookout for ways to save cash. If cost is a factor in purchasing full coverage, we can introduce ways of saving on your premiums. Perhaps you are willing to bundle multiple lines of coverage to get a discount from your insurer. Maybe you are willing to take a voluntary driver education course if it will lower your insurance rates. You may even be able to lower your full coverage quotes by raising your comprehensive and collision deductibles.
Keep in mind that the simple act of shopping around for coverage can save you hundreds on car insurance. When you work with an independent agency like Pagel & Associates, you are working with a team of individuals who are looking out for your best interests. We shop and compare rates from several Wisconsin insurers to find the coverage you need at a price you can afford. Call us today to find out how much we can save you on full coverage auto insurance. We look forward to serving you soon.