There are many reasons why you should opt for full coverage car insurance, especially if you have a brand new car. It is important to first understand that there isn’t any insurance policy that is technically called full coverage insurance, as that could be extensively ambiguous. On the other hand, one must try to look at full coverage car insurance as a combination of both the mandatory components of your insurance as well as those which are for your own benefit.
Third party liability insurance is mandatory
The first part of full coverage car insurance is the third party liability insurance. This is mandated by law and car owners must own this insurance in order to be able to drive their car freely in a state. This insurance provides protection coverage to the opposite party when you are responsible for the accident. This is the minimum required insurance for every automobile owner. However, a lot of car owners only carry this insurance and ignore other components that are required for their own financial benefit.
Comprehensive and collision insurance
Full coverage insurance includes comprehensive and collision insurance which are two important components that every car owner should possess. This is not mandated by law, but it definitely helps you in the future, especially if you own an expensive car, repair of which is extremely costly. Under these components you are covered both for road accidents as well as unforeseen calamities and disasters.
In case of a road accident, for example, you will be able to get compensation or coverage from the insurance company, irrespective of who is at fault. This is a far better option especially when you want to repair your car and get back to normalcy, instead of fighting in court to determine the guilty party. The collision insurance usually covers for all damages to your car in a road accident. However, your car could also be damaged due to collision with an immobile object like tree or wall.
Natural disasters like cyclones, floods, earthquakes and hurricanes also cause a lot of property loss. Comprehensive insurance will ensure that you receive protection coverage for all such unforeseen disasters. A very simple example of unforeseen accidents also includes a tree falling over your parked car, causing extensive damage, repairs of which could be beyond what your wallet could support. Although these may seem unlikely, full coverage insurance will prove beneficial in the long run.