The term “Full Coverage Insurance” is a popular one, but it technically doesn’t exist.
No particular auto insurance policy covers everything because car insurance is not a one-size-fits-all purchase. Full coverage, to some extent, is the level at which you feel you can accept any financial burden for car damage.
The combination of coverages like Comprehensive coverage, Collision coverage, Liability coverage, and the likes is what some would consider Full Coverage Auto Insurance.
It is pertinent to be informed about the various insurance policies available and what they cover so that you can decide on the combination of coverages that would be perfect for you. If you are financing a car, the only requirement by your lender might be that you meet your state’s minimum requirements, or Collision and Comprehensive might as well be required.
From the previously mentioned coverages and more, you can build a reliable insurance package that protects you and your passengers.
These coverages make up a Full Coverage Auto Insurance policy:
- The Comprehensive Coverage: This coverage covers damages to your vehicle that are not caused by a collision with another car. These could be damages caused by weather-related accidents, fire, theft, or vandalism. It also helps with damages resulting from flood, hail, or when you hit an animal.
- Collision Coverage: This policy covers damages caused by a collision with another vehicle, whether or not you are at fault. It only covers your vehicle but does not cover the other party’s vehicle or anyone’s bodily injuries.
- Liability Coverage: This insurance protects you if you are at fault in an accident and you cause injury to another person or property. It would cover the costs of the other party’s damages.
- Medical Coverage: The most common medical coverages are Medical Payments and Personal Injury Protection Coverage. They help with the medical expenses that result from an accident, for you, your relatives, and probably passengers. The coverages offered, who and what is covered, are determined by the states with different rules for each.
- Uninsured / Underinsured Motorist Coverage: These protect you if someone without liability insurance is involved in an accident with you. If the person is someone who does not have enough insurance to pay for your damages, then they are underinsured and your coverage helps protect you. These coverages may help cover your injury or property damage.
Full coverage insurance might not include towing and car rentals. You would have to discuss your options with your agent so that you are not caught by surprise.
There are a few other options that you might be able to include in your policy at a relatively cheap rate.
- Gap Insurance: Also known as a loan or lease payoff insurance, it is coverage that should be requested immediately if a large portion of your vehicle’s value is being taken out as a loan. The “gap” would be your responsibility if you have an accident or your car gets stolen and you owe more on your loan than your car is worth unless this coverage is available. Seeing that the value of vehicles depreciates quickly, it is worth considering.
- Towing and Roadside Assistance: This coverage usually includes towing, it also includes extra services like flat-tire changes or jumping of dead batteries. The roadside assistance comes packaged with full coverage auto insurance.
- Car Rental Coverage: Asking questions about what your policy offers is important because sometimes the car rental coverage is not listed. Some carriers would offer car rental reimbursement in a limited amount when you purchase full coverage auto insurance.
- Full Glass Coverage: When you choose full coverage insurance, it would automatically include glass damage because it falls under comprehensive coverage. But if you choose to go for a high deductible on comprehensive, your glass coverage could be wiped out. Full glass coverage enables you to pay a higher premium but with no deductible or a lower deductible only for glass claims.
- Vanishing Deductible: An insurance carrier could offer you a vanishing deductible that gives you a discount off your deductible for every year of safe driving, but you need to be aware that the coverage does not come automatically with a full coverage policy.
There is an additional cost for it and it has to be added to your policy before you experience a loss.
As there is no standard definition for “full coverage” auto insurance, you have to be certain that your policy meets certain state requirements along with your situation.
There are state-required coverages that include limits you are legally required to have by Auto insurance policies.
The coverages and their limits vary by state.
It is important to bear in mind that your premium is affected by the types of coverages, limits, and deductibles that you choose if you are comparing rates of auto insurance.
The combination of these insurance coverage types and the range of incidents that they cover would make for a full coverage package.