My car is paid for. Do I need full coverage?

You may question the benefits of carrying full coverage auto insurance if you don’t have a car loan. However, before you drop your insurance, there are certain things you should look into. Our West Bloomfield, MI team at Phil Klein Insurance Group is dedicated to helping you make the best insurance decisions when it comes to your vehicle. There are many things that motorists can consider when it comes to dropping full insurance coverage.

When Should You Drop Full Coverage?
If you’re insured for an amount that exceeds your car’s replacement value, you should consider dropping full coverage insurance. Plain talk, if your car was totaled and the payout would be significantly less than your insurance coverage, you probably don’t need full coverage auto insurance. You could also consider lowering your coverage amounts because you’re paying for more coverage than you actually need. However, there are a few key things that you can consider in making your decision. 

  • You’re insured for more than your vehicle’s replacement cost.
  • High Mileage Car
  • You own your own vehicle. 
  • Policy cost exceeds your budget

However, consulting with a Phil Klein Insurance Group team member can also help you make a final decision.

Another consideration is high-mileage cars. High mileage cars are usually cheaper to insure because the average life expectancy of a car is 200K. Purchasing full coverage insurance on a car with high miles is not wise because, often, the value of the car is far less than a full coverage policy. In this case, you’d be over-insured. Again, you can consider lower-cost options if you drive a high-mileage vehicle. 

The Cost
If you don’t have a car loan, and the cost of full coverage insurance is expensive, you should drop the coverage or seek more affordable options. Our West Bloomfield, MI team at Phil Klein Insurance Group is standing by to answer any and all questions you may have about full coverage insurance. Give us a call. Regardless of your situation, we can help you determine your best auto insurance options. 

Understanding Auto Insurance

Auto insurance is the service we need to protect ourselves and others if we’re in an accident. Because accidents can happen unexpectedly, you need to cover yourself before it happens. The auto insurance agents at Phil Klein Insurance Group, in West Bloomfield, MI, are available and want you to understand the basics of auto coverage and why you need it.

No-Fault Coverage

One of the main types of coverage that most states require is liability insurance. In Michigan, you’re required to have no-fault coverage. With no-fault insurance, you won’t be sued if you’re involved in an accident that is deemed to be your fault. There are certain situations that are excluded.

  • If you cause an accident that results in someone being seriously injured or killed.
  • If you hit someone who is a non-resident and their vehicle is not registered in Michigan.
  • If you get into an accident outside of the state.

In these conditions, having no-fault insurance would cover some or all of the cost of medical bills, car repairs, and lost wages.

Three-Part Insurance System

In Michigan, the no-fault policy is made up of 3 parts.

  • Personal Injury Protection (PIP) – pays for medically necessary expenses for you if you are injured in an accident. PIP has no maximum limits, except when it comes to missed wages or death payouts. The maximum for death payouts or missed wages is 3 years and is based on your possible earnings.
  • Bodily Injury – helps pay for the medical costs if you cause an accident that injures someone else.
  • Property Damage – covers you from having to pay for damage to physical property, such as parked cars or fences.

If you need to adjust your coverage and you’re in the West Bloomfield, MI area, stop by Phil Klein Insurance Group to speak with an agent.

Does Auto Insurance Cover Damage to Your Car that Is Not Associated with an Accident?

Your auto policy covers a great deal in terms of damages to your car, including those damages that are not associated with an accident. There are some damages, such as damage from storms that is covered on your policy that does not relate to the car being in an accident. For those in the West Bloomfield, MI area, the agents with Phil Klein Insurance Group can help you go get your perfect policy.  

Your auto policy is not limited to covering only collision in most cases unless you have collision only coverage. A typical auto policy might cover damage from storms, vandalism, break-ins and more when it comes to repairs. Your car is a very important part of your life and making sure it is fully covered is a must. Another thing to consider is that most cars are also going to have coverage for contents and that you can tailor your coverage to fit the car you have and what you would like your insurance policy to do.

With your auto coverage, your car is going to be covered for those events that are not accident related if you choose the right policy. a Full coverage policy for instance also includes replacing windshields in some states, it may cover damage from things falling on your car, it may cover hair damage, water damage in some cases, and more. It is always helpful to speak with an agent if you are unsure about what your policy covers and about what type of coverage you might benefit from most in your particular case.

For those in the West Bloomfield, MI area, the agents with Phil Klein Insurance Group can help you to find the perfect policy for you and for your car.