Full Coverage Auto Insurance

Full Coverage Auto Insurance Explained

Contrary to popular belief, there is no such thing as “full coverage” in an auto insurance plan. In fact, this type of protection does not exist. Instead, this term usually refers to combining collision and comprehensive coverage. A full coverage policy is normally a policy that features several kinds of car insurance protections. The combination of policies supply a stable level of financial protection for an auto driver’s repair and medical needs.

Full Protection for Your Auto and Personal Needs

While no car insurance plan goes by the moniker of “full coverage,” most policyholders think of this type of protection as including the following:

The state-required liability insurance or no-fault insurance to cover the policyholder for bodily injury claims and property damages to other drivers or people.
Collision coverage to pay for damages to the driver’s vehicle.
Comprehensive insurance to cover the costs associated with theft, vandalism, and damages that are not the result of a car crash. Therefore, this insurance covers your car if it is pelted with hail or is damaged during a wind storm or rainstorm.

Do Some Comparison Shopping First

You need to review each of the above coverages carefully to make sure you are getting the exact protection you need. Otherwise, you may end up over-paying for this type of “full” coverage. Plus, not all policies are the same. Therefore, it literally pays to do some comparison shopping. That means, you need to scrutinize the details of each policy and survey the fine print carefully.

Some of the Add-ons to Consider

You might think that full coverage means full protection. However, “full coverage” is not synonymous with “full protection.” When shopping for auto insurance, ask yourself what additional protection will give to you. Consider including one of the following types of coverages to your required liability policy.

Uninsured motorist protection – This will cover repair costs for your car if you are hit by a driver that is driving without insurance.
Underinsured motorist insurance – This insurance will help you pay for the expenses of a car repair. It kicks in if you are hit by a driver who does not have enough insurance.
Medical payments protection – This plan will help you pay for your own medical expenses. It works even if you were the at-fault party.
Rental reimbursement – This policy covers the costs of a rental car while your car is being repaired.
Gap insurance – If you total your car in an accident, this type of insurance pays the balance between what is owed on a lease or loan and the auto’s projected actual cash value.
A customized equipment and parts policy – This insurance covers a vehicle that has been revamped with costly parts and equipment and helps pay for these accessories.
An emergency road service plan – This type of coverage can be used if your car breaks down on the highway or a road and you need to have it towed and serviced.

Assess Your Total Coverage Needs

When making a decision for “full” insurance protection, you need to assess the following:

Your car’s fair market value.
The limits of your health insurance plan. Medical payments insurance can be used to supplement your health insurance needs after a car accident.
Where you live. Consider getting additional protection if you live in an area that is noted for a high rate of theft or vandalism. Also, if you live somewhere where there is a high volume of uninsured drivers, consider uninsured and underinsured motorist policies.
What you can pay. The best insurance protection is usually what you can currently afford to buy.

Full auto protection means that you are choosing the best insurance plans to meet your financial needs. This is important if you are involved in a car wreck or something happens to your car. Take a look at your budget and choose the plans that best meet your needs that are more affordably priced.