Reader’s Question:

Will full coverage do better than liability insurance when it comes to insuring my car in Tallahassee, Florida?

Verna

Tallahassee, FL

Full coverage auto insurance policy is actually two forms of coverage on top of liability – comprehensive coverage and collision coverage. You can choose to have comprehensive coverage without collision, but not collision without comprehensive. Your car insurance policy in Tallahassee with liability and comprehensive coverage would be something in between the legal minimum and full coverage.

Comprehensive coverage is sometimes referred to in Florida as other-than-collision coverage, or OTC. Obviously, this covers damages to your vehicle that arise from something other than a collision. Examples would include theft, fire, weather damage, etc., but the insurance companies confuse the issue by including accidents with animals as part of comprehensive coverage, rather than collision and other accidents.

Comprehensive auto insurance policy is designed to cover things that are less likely to be your fault. Collision coverage will be optional add-on to comprehensive. This isn’t optional if you still owe money on your car! That is why if you got your car on financing, finance companies require borrowers to carry full car insurance coverage on their vehicles.

To lessen confusion, just think of the basic principle in buying any insurance in Tallahassee. You should get the most out of what you spend. As most people look at insurance as an annoying expense, it is really an investment. As a financial product it should be viewed that way.