The name “full coverage’ can be deceiving. There is not an auto insurance policy that can cover you for all situations. Full coverage auto insurance will cover you for the majority of circumstances you may run into.
Auto insurance will protect you from the debt of a totaled vehicle and from being sued. Although, this does not mean you will not encounter other expenses or problems that may arise.
Full coverage auto insurance will cover liability and damage to your vehicle. Full coverage will cover you for the majority of issues you may run into.
What exactly is full coverage auto insurance
In the minds of most of us “full coverage” means we not only purchased liability insurance, which in most states is a requirement to drive, but also comprehensive auto insurance and collision coverage, as well.
Full coverage should mean you have insurance in the types and amounts that will be adequate for your income, risk profile and assets. The purpose of auto insurance is to protect you financially in the event of an accident.
Auto insurance policies can be purchased with various coverage types and levels. You can construct pretty much anything you believe will protect you the most. We list a few of those options below;
- You can choose the lowest deductible on collision coverage and comprehensive auto insurance. There are a few companies that will allow you a $0 deductible, but common deductibles will range from $100 to $200.
- You can choose the highest liability limits available. Typically you’ll see limits of $250,000 for bodily injury, $500,000 for accidents, and $100,000 for property damage.
- You can choose uninsured motorist coverage
- You will also have the option of uninsured / underinsured motorist bodily injury insurance coverage with limits that will match your liability insurance coverage.
- There is also uninsured motorist property damage, which isn’t available in all states. Please check with an agent to see whether or not this is available to you in your state.
- You can choose to cover all available medical coverages at the highest available amounts. This includes personal injury protection in no-fault states and medical payments coverage in other states.
- There is rental reimbursement coverage you will have the option of selecting as well.
- You can choose to cover towing and labor
- There are also preferred customer add-ons like new vehicle replacement programs and vanishing deductible payments.
For the most part, there isn’t really an auto insurance option that will cover you for ALL situations. That doesn’t mean you can’t construct an auto insurance policy that will cover you for the majority of situations though.
What exactly does full coverage auto insurance include
A standard full coverage car insurance policy will include liability insurance, comprehensive insurance, collision coverage, and uninsured motorist coverage. Some of the situation full coverage will protect you form are as follows;
- Any damage you may have caused to another driver, all the way up to your liability limits
- It will cover your vehicle, only up to its full market value. Of course minus your deductible. Even if you are at fault or the other vehicles driver is uninsured or if it is stolen or destroyed in a natural disaster.
- It will cover your injuries for you and your passengers. Even if you are at fault, it will cover you up to the amount of your medical coverage.
- If you are hit by an uninsured motorist it will cover injuries of you and your passengers. You will be covered up to the policy limits of whatever uninsured motorist coverage you have within your policy.
What full coverage usually does not pay for
Full coverage auto insurance covers you for the majority of auto related activities, but what does it typically not cover? We go over a few of the things not covered under full coverage car insurance;
- If you have an accident while racing
- If you use your vehicle off road (Your best option would be to purchase off-road insurance)
- You may use your vehicle in a car sharing program, this is an example of something not covered in full coverage auto insurance. If you need help with a policy for this situation, please contact one of our agents for more information. [click here to call an agent now]
- If your vehicle is destroyed in a war you will not be covered for catastrophic events like these. This also includes nuclear contamination.
- Confiscation or destruction by government authorities
- If you use your vehicle for delivery purposes or business use Commercial auto insurance is an option for you in this situation.
- If you cause intentional damage to your vehicle it will not be covered.
Most comprehensive auto insurance and collision coverage policies will not cover;
- Wear & tear
- Freezing
- Mechanical breakdown (Please look into Mechanical breakdown insurance)
- Tire damage
- Stolen items
- Electronics that are not permanently attached to the vehicle
- Any custom parts and equipment
The term “full coverage” is a very common term used in auto insurance. It refers to a combination of collision, liability, and comprehensive auto insurance coverage. Full coverage is the level you feel comfortable with to cover you financially.
Liability insurance coverage; Liability insurance will cover other drivers if you are involved in an accident. It will cover the other driver as well as their passengers.
Collision insurance coverage; Collision covers physical damage that may happen during an accident.
Comprehensive auto insurance coverage; Comprehensive will cover your vehicle for events that take place outside of an accident.
Should I purchase full coverage auto insurance
At this point the biggest question on your mind is probably whether or not you should buy full coverage car insurance. Often times you will be required by law to carry full coverage. More often than not if you financed or leased your vehicle the lender will require you to carry full coverage auto insurance.
Even when full coverage is not required it may be a smart move to carry it. Say for example you don’t have a ton of money saved up for repairs, carrying full coverage can give you the peace of mind in knowing you’re taken care of in the worst situations.
Wrapping up; full coverage auto insurance is a great option for anyone looking for great coverage. The easiest way to get an amazing full coverage quote is to speak to a professional broker like Eugene C Yates Insurance Agency. One of our agents can help you get a fast, easy, affordable full coverage auto insurance quote in minutes.