You want the best all-around protection when you shop for auto insurance, right? Perhaps you’ve heard of full coverage insurance and desire to ensure that you are entirely protected at all times. You might be surprised to learn that “full coverage insurance” doesn’t exist. When looking for insurance, there isn’t a choice for it. Depending on what you want, it combines several types of coverage.
Let’s examine full coverage insurance to see what it is, what it covers, and how you can use it to your advantage.
What is full coverage insurance?
As said earlier, full coverage insurance consists of a variety of coverages and is not just a box you can tick. Instead of being specific, it is more of an idea. The summation of liability coverage, collision coverage, and comprehensive coverage makes up full coverage. However, there are other coverages involved. Depending on the regulations of the state where you live, some (such as rental reimbursement and breakdown coverage) are voluntary while others (like uninsured motorist coverage or personal injury protection) are mandated by law.
After mentioning the three main components of full coverage insurance, let’s look at each one in more detail. These three will provide adequate all-around security for you, your passengers and your vehicle.
Components of full insurance coverage
- Liability coverage
Liability insurance must be bought when purchasing auto insurance since all states mandate it. Each state establishes its minimum amounts for both bodily injury and property damage, which together make up liability coverage. If you are determined to be at fault for an accident, liability will pay for the costs of medical care for injuries and repairs to other people’s property.
The most crucial element of full coverage insurance is liability. Moreover, you don’t want to operate a vehicle without it! It’s also unpleasant to get into an accident without collision or comprehensive insurance. However, if you merely damaged your car, you would only be held monetarily liable for the car’s value.
2. Comprehensive coverage
When you hear “comprehensive coverage” Your first thought is undoubtedly, “Comprehensive” sounds a lot like “full” to me. And that’s true. But here’s how it works: Only damage to your car caused by something other than an accident is covered by comprehensive insurance. Therefore, for everything from animal damage to theft, fire, and vandalism, even if a tree falls on your car, comprehensive coverage covers it all.
3. Collision coverage
The expense of repairing or replacing your car after a collision is covered by collision coverage. This could result in an accident with another car, whether or not you were at fault, or with a fence or light. Hey, even the finest of us can experience these things! And for that reason, you need collision insurance. Now that we have covered the 3 major components of full coverage insurance, let’s take a closer look at some additional coverage options you have for a full coverage insurance plan.
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Other policies that are part of full insurance coverage
- Personal injury protection (PIP) coverage
Some (but not all) states have laws requiring this kind of coverage. Similar to medical expenditure coverage, it aids in covering other costs while you’re healing from an injury. These could include expenses for daycare or lost pay if you are unable to work.
As additional safeguards included in full coverage insurance, an insurance agent might additionally offer rental reimbursement, roadside assistance, guaranteed vehicle protection (GAP), tire damage, towing, and breakdown coverage.
2. Uninsured/underinsured motorist coverage
When you purchase auto insurance, you may be required by some jurisdictions to have some level of underinsured or uninsured motorist protection (or both). This safeguards you if the party you collide with is underinsured or has insufficient liability insurance. It gives you an upper hand in this scenario, which is why it is highly recommended.
3. Medical payment coverage (MedPay)
This is an add-on to an auto insurance policy called and covers medical costs associated with motor accidents. It also goes by the name “MedPay” and provides coverage for you and any passengers in your car, any injured pedestrians, and you if you are a passenger in another car or are hurt by a car while walking, riding a bike, or using public transportation.
How much does full coverage cost?
The price is not one size fits all, just like full coverage isn’t either. The price of full coverage insurance can change. Your personal information, your car’s make and model, your location, and the limits and deductibles you’ve chosen for all of your plans, all affect how much coverage you receive. All of these factors affect how much auto insurance costs. Depending on these factors, your premium would be significantly cheaper if you merely maintained liability insurance, which is the bare minimum required by your state. But keep in mind that there is a “full coverage” option for you!
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Are there any disadvantages to full coverage?
The obvious disadvantage of full coverage insurance is its cost. Though it is more expensive than liability coverage, you can still get good deals by comparing auto insurance quotes from several providers. Another con is that before receiving benefits, you may be required to pay deductibles, and after receiving benefits your premium might rise.
Do you need full coverage insurance?
The answer is YES! In general, if you can find full coverage insurance at a reasonable price, acquire it. You must have liability insurance, as well as enough all-around auto coverage.
You will also need to include other coverages in your plan if your state mandates additional coverages, such as uninsured/underinsured motorist coverage or personal injury protection (PIP). Additionally, your agent might suggest them.
The short answer to the question “what is full coverage insurance?” Is that it is a combination of coverages that offer financial security in the event of an accident or other event, such as vandalism or severe weatherer, that results in damage to your car. It is a highly recommended insurance policy for car owners as it provides maximum protection for you and your family.