Although comprehensive auto insurance coverage isn't mandated by the government, there are some situations in which it makes sense to buy the coverage. Here are some of those situations:
You Haven't Repaid Your Car Loan in Full
When you buy a car on loan, like most people do, you don't actually own it (at least not fully) until you have completed the loan repayment. Your financier also has a financial interest in the car and they can repossess it (in this case the car is the collateral for the loan) if you default. This means the financier can lose only if the car is damaged beyond repair or stolen, and you can't service your loan. For this reason, your financier will insist on a comprehensive coverage of the car for the duration of the loan. That way its rights are protected even if the car gets written off or stolen.
Your Risk of Filing a Comprehensive Coverage Claim Is High
Even if you don't have a financier breathing down your neck, it may still be useful to buy comprehensive insurance coverage under some circumstances. An example of such a circumstance is if you have assessed your situation and come to the conclusion that your risk of filing a comprehensive insurance claim is high. This may be, say, if you live in a high crime rate area and you don't have a secure parking place. In such cases, having comprehensive insurance coverage can give you peace of mind.
You Have a High-Value Car
There is nothing as painful as losing an expensive car that doesn't have comprehensive insurance. In such a case, you have to use your personal funds to replace the lost car. It's even worse if you don't have enough funds and can't replace the car even if you wanted to. Therefore, if you have a luxury car, a brand new car or an exotic car that costs more than the average car, its best to buy comprehensive coverage for its protection.
You Don't Have a Large Emergency Fund
Lastly, it also makes sense to buy comprehensive coverage for your car if you don't an emergency cash reserve you can dip into to replace your car in case of an expensive damage or theft case. In such a case, a comprehensive coverage is advisable even for a standard car. This advice is even more valuable if you need your car (say you need it for your work) and can't go for long without it.
Contact a company like Insure With U.S. for more information.
