The quick answer? Most likely, yes. In Mesa, AZ and surrounding areas, lenders typically require borrowers to have comprehensive auto insurance to get a car loan. Precision Insurance Team provides this guide in navigating this important coverage.
What is a Comprehensive Insurance Policy?
Comprehensive insurance is sometimes called “other than collision” coverage. It pays to repair or replace your car if it’s stolen, vandalized, or damaged by fire, hail, flood, or another covered event.
Comprehensive insurance is optional in most states, but as we mentioned, it’s typically required in Arizona if you have a car loan. You can find out more about the requirements with the Precision Insurance Team.
Lenders Require Comprehensive Insurance for a Reason
Your car is collateral for your loan, so the lender can repossess your vehicle if you can’t make your payments. To protect their investment (and yours), lenders want to ensure you have insurance if something happens to your car.
Comprehensive insurance is the best way to do that since it covers many potential risks. If you only have liability insurance, it will only cover damage or injuries that you cause to others—not damage to your own vehicle.
Remember that even if your lender doesn’t require comprehensive insurance, it’s still a good idea to have it. After all, you don’t want to be stuck with an enormous repair bill or have to replace your car if it’s stolen or vandalized.
Are There Any Add-ons I Want to Consider?
There are a few add-ons to consider when getting comprehensive auto insurance in Mesa AZ, such as:
- Rental reimbursement: This pays for a rental car while your vehicle is being repaired after a covered event.
- Roadside assistance: If you break down, this pays for towing and other emergency services.
- Custom parts and equipment: This covers damage to any customizations or aftermarket additions to your vehicle.
Give Us A Call
The experts at Precision Insurance Team in Mesa, AZ will help you choose the right coverage and add-ons for your needs.