Full coverage car insurance typically refers to a policy that includes liability coverage, collision coverage, and comprehensive coverage. Liability coverage helps you pay for damages you cause to others, while collision coverage pays for damage to your own car in case of an accident.
Comprehensive coverage covers damages caused by events other than collisions, such as theft, vandalism, or natural disasters. It’s a comprehensive package designed to protect you financially in various scenarios.
Liability insurance covers your own vehicle. Some people also add medical payments or uninsured motorist coverage to their full coverage policy.
The specific components of a full coverage policy can vary depending on your insurance company and location. However, most full coverage policies will include a minimum amount of liability insurance, which is required by law in most states.
The collision and comprehensive coverage included in a full coverage policy are optional, but they can provide valuable protection for your vehicle. And based on your personal circumstances, you may also be required to take out additional coverage or endorsements to be considered fully.
What Does Full Coverage Car Insurance Cover?
When you are shopping for car insurance, you have heard of the term “full coverage.” But what does that actually mean? In general, a full coverage policy includes four main types of coverage: bodily injury liability, property damage liability, collision, and comprehensive.
These four types of coverage work together to protect you, your passengers, and your vehicle in the event of an accident. In addition to the four main coverages, full coverage may also include several other optional coverages, such as uninsured or underinsured motorist coverage, medical payments coverage, personal injury protection, and rental care reimbursement.
- Bodily injury liability: It covers medical expenses and other costs for people who are injured in an accident.
- Property damage liability: It covers the costs of repairs or replacement of other people’s property that’s damaged in an accident you caused.
- Collision car coverage: It covers damage to your own vehicle if it’s in an accident, regardless of who’s at fault,.
- Comprehensive coverage: It covers damage to your vehicle that’s not caused by a collision, such as theft, vandalism, or weather damage.
Other additional coverage that can be added to full coverage car insurance
- Uninsured/underinsured motorist coverage: It covers you if you’re in an accident with someone who doesn’t have insurance or doesn’t have enough insurance coverage to cover the damages.
- Medical payments coverage: It covers medical expenses for you and your massagers, regardless of who’s at fault in the accident.
- Personal injury protection: It covers your own medical expenses, no matter who’s at fault.
- Rental car reimbursement: It pays for a rental car while your vehicle is being repaired after an accident.
You may also want to consider adding Gap insurance if you have car loan or rental reimbursement coverage, if you frequently rent cars. These additional coverages can provide extra protection and peace of mind.
Keep in mind that not all of these coverages are included in every full-coverage policy. It’s important to read your policy carefully to make sure you understand what’s covered and what’s not.
What Full Coverage Car Insurance Doesn’t Cover
Even though full coverage car insurance provides a high level of protection, it doesn’t cover everything. There are certain types of damage that are not covered under most policies. Knowing what is and isn’t covered can help you make the best decisions about your insurance coverage. So, let’s take a look at the types of damage that are not typically covered:
- Your own medical expenses after an accident, unless you have medical payment coverage
- Any damage to your vehicle that’s caused by normal wear and tear, such as a dead battery or flat tire
- Damage to your vehicle that’s caused by mechanical failure, such as a blown engine or a broken transmission
- Damage caused by war or acts of terrorism
- Damage caused by racing or participating in a full speed
Is Full Coverage Car Insurance Worth it?
The answer will depend on individual circumstances. However, full coverage insurance can provide you with peace of mind and protect you from financial hardship if you’re in an accident. It can also protect your vehicle from damage that’s not caused by a collision.
Full coverage care insurance is worth the broad coverage of liability plus collision plus comprehensive insurance. It saves you from paying out of your pocket after an expensive car debt.
Do I Need Full Coverage Car Insurance?
Full coverage car insurance can be a good option if you have a car loan or lease. Because lenders and leasing companies want financial protection when the car is damaged or stolen
Coverage types like collision or comprehensive could violate the terms of your loan or lease when you drop them. Even if you’re not required to have full coverage auto insurance, it’s worth considering for its broad insurance protection.
Full Coverage Car Insurance Cost
The cost of full coverage car insurance varies depending on a number of factors. This includes your driving record, the type of vehicle you drive, your location, and your deductible. Generally speaking, full coverage is more expensive than basic liability insurance, but the cost can range significantly depending on your specific circumstances. Your best bet is to get quotes from multiple companies and compare the costs and coverage options.
Conclusion
Full coverage car insurance is an option worth considering for many drivers. It provides comprehensive protection in the event of an accident, and it can provide peace of mind. However, it’s important to weigh the cost of full coverage against the potential benefits. Before making a decision, it’s a good idea to consult with your insurance agent to find the right policy for your needs.
