Do You Need Full Coverage on a Used Financed Car?

Whether you’re buying new or used, selecting insurance coverage for your vehicle is a crucial part of the process. In general, we’ve found that Woodway-area car-buyers are less confident about what coverage is necessary for used cars and whether partial coverage is enough. So do you need full coverage on a used financed car?

By law, drivers are only required to purchase liability insurance for both new and used cars. However, it’s usually worth the cost to expand your coverage with additional policies such as collision and comprehensive insurance. In the guide below from the Douglass Nissan of Waco finance center, we’ll take a closer look at how to finance a used car affordably, as well as the many benefits of full coverage insurance.

What is Full Coverage Insurance?

“Full coverage” doesn’t refer to a type of insurance. Rather, it indicates the combination of the primary coverage policies: liability, collision, and comprehensive. All Hewitt drivers must purchase liability insurance, which covers damages to other vehicles in the event of a collision for which you are at fault.

When you add collision and comprehensive insurance to your required liability coverage, you have what’s known as “full” coverage. With full insurance, you’re covered for damages to your own vehicle and property as well as any accident-related medical expenses. Although coverage details vary depending on your provider, typical coverage for each insurance type is as follows:

• Liability – Covers injuries, property damage, and damage to the other vehicle(s) in a collision for which you were at fault.
• Collision – Covers repairs to your vehicle in a collision for which you were at fault.
• Comprehensive – Covers damage to your car due to weather, theft, fire, and other non-accident-related events.

Financing a Used Car

If you’re looking for the lowest possible monthly payment, you may be wondering how many years you can finance a used car. Our team of experienced auto finance experts is happy to help you review your loan or lease term options. When you head to your local McGregor dealership to negotiate an affordable payment plan for your car, have the following documents ready:

• Valid Driver’s License
• Valid Car Insurance Card
• Proof of Income
• Documentation for your trade-in value

Learn How to Finance a Used Car with Douglass Nissan of Waco 

If you have other questions about how to finance a used car, we’re here to help. Contact our team for details about the benefits of full insurance coverage or details about liability, comprehensive, and collision insurance options in Waco.