Car Insurance Myth About Full Coverage

O.K. let's set the stage regarding a myth that is in some people's minds about car insurance.

You buy a new car and pay cash for it. You opt for full coverage because you want the ability to get a new car again if you are involved in an accident.

2 years later you are in an accident that will require several thousands dollars to fix. Time to replace that car with a new car and let the insurance money foot the bill.

Right?

Wrong!

Car insurance is designed to get you back to today, not 2 years ago. Your auto body shop is happy because you have full coverage. They are going to get paid to get you back on the road in the car you have insured. Not the new car you want!

Here is another important point.

When you are buying full coverage find out exactly what that means. What is included and what is not included. This way you will have no surprises in the event of an accident. 

Many people buy the cheapest full coverage auto insurance for the state where they live. This can vary from state to state. You will not always be covered for everything and need to know what that means.