Full coverage is a common term used in car insurance. However, it has many different meanings to many different people. This is because full coverage auto insurance depends on the needs and requirements of the person buying it. In addition, not all insurance companies have the same rules when it comes to the actual coverage it includes. It is not a “buy-1-take-all” kind of insurance policy. The coverage it includes may still vary, and if it is your first time to buy auto insurance, you need to know the basic terms used.
Building the Foundation of a Full Coverage Policy
What comprises basic full coverage auto insurance? Check your policy offer if it includes the following:
Minimum Liability Coverage
Every state has its own auto insurance laws, and with it comes minimum liability coverage required for local vehicle owners to have on their car insurance policies. The most common requirements include coverage for property damage and bodily injury. You should understand that liability coverage only covers damages incurred to another person and not on yourself.
This type of coverage is known to give policyholders the most extensive coverage. You should not find any full coverage auto insurance policy without this. Collision coverage is the part of your insurance which makes sure that your car is protected not considering the cause of damage. Whether it is an inanimate object or vehicle collision, you can still file for damages. Since purchasing comprehensive coverage is a prerequisite for buying collision coverage, anything bad that happens to your vehicle will still be paid under this coverage.
Full coverage cannot be considered full without comprehensive coverage. This covers any physical damage to your car except for damage acquired from a collision. Possible causes may include extreme weather, tornado, or floods.
Add-Ons That You May Want Buy
Assumptions are never a good thing to do when you speak about auto insurance. Also, you should never think that having full coverage means that you have all possible insurance coverage automatically added to your policy. There are certain coverages that you still need to buy separately. However, you should always ask for on-going promos that include the following coverages bundled with the three already mentioned above.
- UM/UIM (Uninsured Motorist/Underinsured Motorist) – these coverages are easy to ignore. You should definitely think hard enough before deciding not to add or add this to your policy. This coverage is especially useful if you are living in a Tort state and an uninsured driver hit you. You won’t get any compensation from someone who has no ability to pay damages on his own.
- Towing and Labor (Emergency Roadside Assistance) – this is one of the most common coverages that insurance companies package with a full coverage policy. It includes coverage for towing services, retrieving your keys inside your locked car, jump-starting your engine, running out of gas, and other scenarios where you are left stranded on the road.
- Personal Injury Protection (PIP) – this covers your medical fees or hospitalization, wage loss, and other final expenditures that you or your passenger may require after an accident.
Other additional coverage that you might want to research about is car rental, gap insurance, OEM endorsement, vanishing deductible and auto death indemnity. Do not allow ignorance to get the best of you when it comes to benefitting the most out of your car insurance. This would also be of great help for people who are on the lookout for the best motorcycle insurance quote.