The more car insurance you have, the safer you are. Therefore, theoretically, full coverage keeps you safest of all. What is full coverage, though? Does it really cover everything? There are a lot of misconceptions about what it is and what it does. Let’s try to clear some of those up now.
What Is Full Coverage Car Insurance?
There isn’t really a blanket “full coverage” option. Rather, when people talk about full coverage insurance, they’re referring to a combination of several different types of insurance, which, between them, will cover most things that can happen to your car.
First is liability insurance. This is required by law in most states, up to a certain amount. If you’re found to be at fault in an accident, it covers damages to the other person’s vehicle. Certain types of liability insurance may also cover their medical bills in case of injury, and other expenses.
Next is collision insurance. This covers damage to your own vehicle in an accident. It may apply if you are at fault in an accident with another car, or if you hit a tree, a pole, or some other object that’s not another driver.
Then there’s comprehensive insurance. Many people mix this up with full coverage. Comprehensive insurance covers things that can happen to your car besides accidents: damage from fire, natural disaster, or vandalism, as well as theft. When something unforeseen happens to your car, comprehensive insurance will protect you.
When people refer to full coverage car insurance, they’re generally talking about a combination of these three types of coverage.
What’s Not Covered by Full Coverage?
Just because you have full coverage doesn’t mean you have blanket protection against everything that can go wrong. For instance, it won’t cover your medical expenses, or loss of income due to injury in an accident. It likewise won’t cover a rental car, while yours is in the shop. And it won’t cover you against being hit by an uninsured driver.
For those, you’ll need medical payments coverage, personal injury protection, rental reimbursement coverage, and uninsured motorist coverage, respectively. There are a number of different types of insurance that don’t fall under “full coverage,” which you may still find necessary. Talk to your insurance provider to see what your options are.
Do I Need Full Coverage?
Full coverage car insurance can help you in a lot of ways. It’s also more expensive than simply getting the minimum required liability insurance for your state. So, is that extra cost worthwhile? That depends on a number of factors—the main one being the value of your car.
The older your car is, and the more miles are on it, the more the value goes down. If the amount you’re paying in premiums for full coverage exceeds the value of the car—and thus the amount you would get in the event of an incident—then it’s not worth the price. If you save that money and use it to pay for damages out of pocket instead, you’ll actually get a better deal.
However, if your car’s value exceeds the amount you’re paying for coverage, then it’s a good idea. Full coverage can keep you protected against all sorts of disasters, both on the road and off, and save you a lot of money if your vehicle needs to be repaired or replaced. That peace of mind is worth the price.
Contact us to learn more about full coverage car insurance!