You already know that you need to have liability coverage to stay legal on California roads. But, are you required to keep comprehensive and collision coverage on your auto insurance policy? Our Biddle-Shaw Insurance Services Inc. team has put together all the information you need.
Are You Legally Required to Carry Full Coverage?
The basic answer is no. The State of California doesn’t care about whether you have the ability to fix your own vehicle. They just want to ensure that you can help the other person fix their car, pay for medical bills, or replace personal property if you’re involved in an accident that is deemed your fault.
Your Bank Might Have Other Ideas
However, if you have a loan on your vehicle, your bank might have other ideas. Most have a clause in their contracts that states that you have to carry first-party coverage on your car insurance policy. This means that, even though you aren’t legally required to have it, you’ll need to purchase comprehensive and collision when you buy auto insurance. In the end, this protects their interest in your vehicle if it is ever repossessed.
Why Having Comprehensive and Collision is a Good Idea
Even if your vehicle is fully paid off, having full coverage on your vehicle is still a good idea. Think about it for a moment. If your car were stolen, damaged in an accident, or hit by an uninsured driver, would you be able to pay for repairs out of your own pocket? For most people, this would be difficult. Instead, it is much more economical to go ahead and purchase comprehensive and collision on your policy.
Let Us Help with Your California Auto Insurance Needs
At Biddle-Shaw Insurance Services inc, we’re dedicated to helping our customers with all of their auto insurance needs. For more information on how we can assist you, please contact our San Francisco, CA location today to schedule an appointment.