Full Coverage Auto Insurance
What Does “Full Coverage” Mean?
“Full Auto Insurance Coverage” is NOT a coverage in and of its own. “Full Coverage” is just a term typically made use of to define a variety of coverage’s that offer an effective amount of 3 types of coverage; Specifically: liability, comprehensive, and collision coverage.
Liability helps cover damages you cause in an at-fault collision, while at the same time comprehensive and collision can help repair damages to your vehicle (or replace it entirely).
It’s a strong package of coverage, yes– but it may not actually deliver all the protection you require. And that’s exactly why “full coverage” may be deceptive.
What the Term “Full Coverage” Typically Does NOT Include Auto insurance agencies offer a lot of insurance coverage types that fall beyond the realm of “full coverage,” and several deserve taking into consideration.
Let’s take a glimpse at a small number of coverages that are inclined to fall outside of “full coverage”:
- Medical payments coverage— This protection can help pay for post-accident medical costs for you and your passengers no matter the fault, and it can also come in if you surpass your health insurance limits.
- Uninsured/underinsured motorist insurance coverage (UM/UIM)– UM/UIM coverage assists pay for expenses that the other driver’s insurance policy ought to have dealt with, but can not due to that driver’s lower coverage limits or absence of insurance coverage completely.
- Emergency road service coverage (also known as roadside assistance or towing and labor)– A helpful policy coverage to have if you are generally not a genius with a jack and a wrench or just need to get a damaged vehicle to the repair shop.
- Customized parts and equipment insurance coverage— If you’re the sort of car owner that enjoys a customized stereo and chrome wheels, “full coverage” will not help you replace or restore them after a collision– but this coverage can.
- Rental car coverage— This can repay your rental car costs after a covered accident.
- Gap coverage (aka auto loan/lease coverage)– If you’ve financed your car, gap coverage happens to help you pay off your car loan if your car’s totaled when you still owe more than it’s worth.
“Full Coverage” is actually more like a “Very Good Coverage”
Although full coverage provides a pretty good amount of protection in regards to liability and the wellbeing of your vehicle, it does not indicate that you will not have to pay for anything out of pocket after an accident.
Assuming that you choose a “full coverage” policy, you’ll be protected up to the limits you choose. If damages go beyond your liability limits, you might be legally responsible for the difference (a good case for increased limits).
Bear in mind, as well, that whenever your comprehensive or collision coverage begins, you’ll additionally need to pay for the deductible.
You may need to have more than just “full coverage”
If you are really in the market for a new car insurance policy and you’re shopping for optimum protection, take into consideration all of your policy coverage options above and over and above what “full coverage” commonly provides.
The general guideline: purchase as much insurance coverage as you can easily afford.