Full Coverage Auto Insurance
Summary: How to Get “Full Coverage" Car Insurance
Did you know “full coverage" car insurance doesn't actually exist? It's a term often used to refer to the combination of collision and comprehensive.
Full Coverage Auto Insurance
Many think they carry “full coverage" on their car insurance policy; however, in reality there is no such thing as full coverage auto insurance.
A full coverage policy is typically one that includes several types of car insurance coverage that, as a whole, provide a solid level of protection in case of an accident.
What Does “Full Coverage" Mean?
While there is no car insurance coverage that goes by the name “full coverage," most individuals think of full coverage as a policy that combines the following:
- State-required liability or no-fault insurance coverage to cover bodily injury and property damages to others in an accident you cause.
- Collision coverage to pay for damages to your vehicle in the event of an accident.
- Comprehensive coverage, which is designed to cover vandalism, theft, and other damages that are not the result of an accident.
Even with this, the details and amount of protection will vary by the company issuing the policy. You need to ask about the details and read the fine print carefully.
Additional Coverages to Consider
Having a full coverage auto insurance policy doesn't mean you have full protection no matter what. Depending on your circumstances, it may even mean you don't even have good enough protection. Instead of relying on a “full coverage" policy, ask yourself what coverage and limits best meet your needs.
There are numerous other types of car insurance coverage that will offer you additional protection in case of an accident or other unfortunate situation.
Consider adding one or more of the following insurance coverages to your policy if you are looking for a very comprehensive car insurance policy:
- Uninsured motorist protection – This helps you cover your costs if you get hit by a driver with no insurance.
- Underinsured motorist protection – This will help pay your costs if the other driver has insufficient insurance coverage and/or coverage limits.
- Medical payments coverage – You can use this coverage to pay for your medical costs after a car accident, even if you were at fault.
- Rental reimbursement – If you're in an accident and your car is in repair, this coverage can cover your rental costs while you wait.
- Emergency road service – You can use this coverage if your car breaks down on the road and you need towing or labor.
- Customized parts and equipment – If you've enhanced your vehicle with expensive equipment, this coverage will help you with the cost of damages to your custom parts.
- Gap insurance – If your car is totaled in an accident, this coverage helps pay the balance between the amount you owe on your loan or lease and the car's estimated actual cash value.
The Right Coverage for You
There are many factors to consider when determining which auto insurance coverage to purchase and which to opt out of. These include:
- The fair market value of your vehicle.
- The quality and limits of your health insurance.
- Medical payments coverage can be used to supplement your health insurance after an accident.
- Your location.
- High theft or vandalism rates can merit additional protection.
- If your city has a high number of uninsured drivers, you may wish to purchases uninsured/underinsured motorist insurance.
- Your current budget.
- The best protection is frequently the most insurance you can afford to carry.
Remember that what one person considers “full coverage" may not be the best car insurance for you.
Take a look at your own personal needs, your vehicle, and your budget to determine what will work best for you. Once you have an idea of what car insurance coverages you need, talk to your agent or get a quote online to create a policy that you feel offers comprehensive protection and peace of mind.