If you are financing a personal vehicle, then yes, it is mandatory. If you do not secure insurance, the finance company will add it for you, regardless of the cost, as you will be the one paying for it. It is advisable to get two or three quotes and decide which one offers the best coverage. If you have fully paid off your vehicle, it is always better to have comprehensive coverage.

Certainly, price is one of the most important factors, but do not let it be the only one. Review the coverage options provided. It´s crucial to check the insurance company´s rating. You can do this yourself on the AM Best website at https://www.ambest.com The most well-known insurance ratings often serve as a benchmark for financial strength in the industry. The highest rating is A++ (Superior) while the lowest is D (Poor). Companies rated "A" are considered quite solid, and many finance companies require this type of insurance, so make sure of this before you finalize the deal and receive your policy because once the policy is issued, it will be very complicated to get your money back.

Insure your vehicle(s) for their market value, as in the event of a total loss, the insurance will pay an amount sufficient to purchase a vehicle with similar features to the one you lost. Since vehicles tend to depreciate, it is recommended that each time you renew your insurance, you check the market value of your vehicle(s). I have found "TruckPaper" at https://www.truckpaper.com very helpful for seeing prices. Vehicles are listed for sale there. Look for vehicles similar to yours, taking into account the mileage and the state where they are sold. Remember, everything is more expensive in California, which could help you save some dollars.

Overvaluing your vehicles is futile as insurance payments are based either on the market value or the insured amount, whichever is lower. For example, if you insure your vehicle for $80,000 and the market value is $50,000, the finance company will only pay $50,000, unless you have made significant repairs and have proof of it, which must be negotiated with the insurance adjuster. However, if your truck is worth $80,000 and you only insured it for $50,000, the insurance will pay $50,000, and you will lose $30,000.

Physical damage coverage for your vehicles often includes towing and recovery expenses, many times with a maximum of $10,000 which, considering current costs, is quite low in my opinion. Review this coverage carefully because if you are involved in an accident and these expenses exceed $10,000, you (the insured) will have to pay the difference.
We hope this information is helpful. Have a great day and safe travels.