Like most people, you probably have questions about full coverage auto insurance and car loans. Do you need full coverage if you have a loan on your car? What are the benefits of a comprehensive policy? Let’s look at full coverage auto insurance and car loans in Oakland Park, FL.
Car Loans and Insurance
If you have a car loan, your lender will require you to have full auto insurance coverage. This is because the lender wants to ensure they protect their investment in case of an accident or theft. With full coverage, your lender will be reimbursed for the remaining balance of your loan if your car is totaled or stolen.
What is a Comprehensive Insurance Policy?
A comprehensive insurance policy is a type of full coverage auto insurance that covers you for more than just accidents. Comprehensive coverage includes protection from fire, theft, vandalism, and other types of damage. Lenders often require this if you have a car loan.
Your eAdvisorPro Property & Casualty LLC insurance agent can help you learn about the benefits of full coverage auto insurance and decide if it’s right for you.
Another reason to have full coverage auto insurance is gap insurance. Gap insurance covers the "gap" between the value of your car and the amount you still owe on your loan. This is important because if you total your car, the insurance company will only pay the vehicle’s market value, which may be less than what you owe on your loan. Gap insurance covers the difference, so you don’t have to come up with the money.
To learn more about full coverage auto insurance in Oakland Park, FL, and whether it’s right for you, contact your eAdvisorPro Property & Casualty LLC agent today.