Understanding Full Coverage Auto Insurance

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Full coverage auto insurance sounds all encompassing and many people assume that it means full protection. Sadly, that’s not quite true. The majority of full coverage car insurance plans fit most needs, but there are a few situations and items that aren’t fully covered. Let’s take a moment to fully define “full coverage auto insurance” and the details surrounding it.

What Does “Full Coverage Auto Insurance” Really Mean?

Full coverage car insurance is a policy that bundles together comprehensive coverage, collision coverage, and liability coverage into one plan to cover bodily injury and/or property damage you’ve caused in a car accident. Auto insurance companies combine these three commonly requested coverages together into a single insurance policy in order to simplify things since you both can keep track of one plan instead of three separate ones.

Comprehensive and Collision Coverage? What’s That?

Comprehensive coverage covers theft, vandalism, or other damages done to your vehicle that weren’t a result of a car collision. Collision coverage will pay for the repairs or loss of your vehicle In the event of an accident. Comprehensive and collision insurance plans can be sold separately, together, or as two parts of a full coverage auto insurance plan.

Other Insurance Coverage Options to Consider

While liability, comprehensive, and collision coverage can protect you in many cases, it doesn’t fit every possible scenario. Other coverage options you can add include :

  • Medical Payments Coverage – This can help pay medical bills for injuries you have gotten as a result of a car collision, regardless of fault. Some states in the U.S. may legally require this coverage.
  • Emergency Road Service/Towing & Labor – This helps pay for the costs to tow your car and some repairs if your vehicle breaks down while on the road.
  • Customized Parts and Equipment Coverage – If you have made any enhancements or customizations to your vehicle, this policy helps cover the expenses if it is stolen or damaged. You’ll want this type of coverage if you did any major cosmetic alterations to your car, installed an expensive stereo, or any other expensive customizing.
  • Uninsured/Underinsured Motorist Protection – This insurance helps you if you get into an accident with a person that has no insurance or is too underinsured to fulfill your claim. Many states legally require this coverage.
  • Gap Insurance – If your insured vehicle is purchased via lease or a loan, this policy helps cover the difference in the leftover balance you owe and the cash value of the car.

What Auto Insurance Policy is the Best for Me?

The truth is that getting full protection will be pretty expensive. You will have to figure out what you truly need and can afford. Look at your budget to see what kind of coverage fits your budget. Shop around multiple insurance providers to see if they’ll offer you a discount for bundling several policies.

Lastly, consider the worth of your vehicle. If your car is old or has high mileage, you may want to exclude certain forms of coverage since certain vehicle repairs might cost more than the worth of your car. You can find an accurate estimate of your car’s worth at the Kelley Blue Book website to gauge your insurance costs accordingly.

Since you now know what full coverage auto insurance truly means, why not get a FREE QUOTE from Freeway Insurance? We can also provide additional coverage to our already affordable insurance policies at a low price

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