Buying a new insurance policy that covers your vehicles is often hard because there are so many options available. The idea behind insurance is that your insurer will step up after an accident to cover the cost of repairs to your vehicle and others and some of the other expenses that you face too. If you have liability coverage, then the insurer will only pay out for accidents where you are at fault or you are the responsible party. There are times when it makes more sense to pay for full coverage.
When You Buy a New Car
It makes financial sense to spring for full coverage when you buy a brand new car, truck, van or SUV. A new vehicle can easily cost $25,000 to $30,000 or more, and that vehicle begins dropping in value as soon as you drive it off the lot. A full coverage policy protects you against damage caused by other drivers and even acts of nature. Some dealers even require that you show proof that you have full coverage insurance before driving off the lot.
When You Have a Clean Driving Record
When you buy an auto insurance Anaheim policy, the insurer will base your premiums on the type of insurance you want and your driving history. If you had a number of accidents in the past, you’ll often find that you must pay more for coverage than someone will a clean driving record would pay. If you have a clean driving record though, the cost of your policy will drop. This lets you purchase a full coverage policy without paying as much as you expected. That policy offers more protection than a liability policy does.
When You Can Bundle Policies
Another smart type to purchase a full coverage policy is when you can bundle policies. Most insurers now offer policies designed for those who travel, live in rental homes or own their own homes. As a renter, you can bundle your home and renters’ insurance policies and save money on both. You can also bundle a home insurance policy with an auto insurance policy. This lets you get help replacing items damaged during a storm or stolen during a robbery. Bundling helps you get the full coverage you want at a reduced price. Check with your insurer about whether it makes sense to sign up for a full coverage insurance policy.