I’ve been researching car insurance prices for an article I’ve been writing. One preliminary finding that I can share with the world is that “full coverage car insurance” is pointless.
First off. There’s no such thing as full coverage insurance. It’s just a made up term used by a few foolish insurance companies. Basically what it means is that you’re covered for “everything”.
But that’s not true. Full coverage insurance doesn’t cover everything, there’s lots of things it doesn’t cover. But even though it doesn’t cover everything it costs as much as if it did.
So why do people buy full coverage car insurance? Clearly it’s not cheap and doesn’t cover everything, so why buy it?
Simple. Good salespeople. That’s why. People like to feel safe, especially with their insurance. They want to be covered for absolutely everything, so they buy full coverage insurance.
The truth is that if you buy regular insurance and add a few extra protections you’ll be covered for 99.99% of situations and end up paying a lot less.
Think of it this way, why pay for hurricane insurance if you live in Arizona?
It makes no sense!
So stop buying full coverage insurance because it makes no sense either.
So what car insurance should you get?
Well, that’s going to depend on a lot of factors like where you live, your car, who you want covered. There’s a lot of insurance options out there, and I always tell people it’s best to compare as many companies and options as possible.
To tell you the truth most of the insurance companies don’t even have a clue about their pricing strategies, a lot of stuff is made on the fly. Who has the cheapest auto insurance ends up just being dumb luck. Something most insurance companies would not like to admit!