Although most states require drivers to carry liability insurance, drivers often need to carry more than the state-required minimum auto insurance. Full coverage auto insurance is often recommended if you have an auto loan or a new car. Many people would be ill-prepared to pay out of pocket for damage to their late-model vehicle. Auto insurance has many benefits and protects the driver and other drivers. Our team at Hedgepeth-Hutson Insurance Services Inc. is dedicated to educating Nashville, NC, drivers on the benefits of car insurance. 

What are the benefits of auto insurance?

Auto insurance provides a lot of protection for both the driver and other drivers through liability, collision, and comprehensive coverage. Liability protects other drivers and their property that you may damage. Collision coverage protects you, your car’s damages, and your injuries, while comprehensive coverage covers many kinds of accidents and situations that may not involve a wreck. The coverage type depends on your specific type of auto insurance. 

I just paid off my car loan. Is full coverage auto insurance still a necessity?

Maybe. If you own a late-model car, it may be challenging to pay for damage that your vehicle may sustain due to an auto accident. Auto insurance pays for the repair of your vehicle minus your deductible. This is often a huge savings for most drivers. If you’re a driver with a car loan, your loan company often requires you to carry full coverage auto insurance until your car is paid for in full. However, once you pay your car off, you are no longer required to carry full coverage auto insurance. However, this doesn’t mean reducing your coverage is a wise idea. If the cost of insuring your car exceeds its value, it may be wise to drop full auto insurance coverage. Likely, your insurance company wouldn’t pay for repairing your vehicle if it were critically damaged in an accident because the damage would exceed your car’s value. If you have questions about auto insurance, call us. We’re standing by.