All active drivers need to be insured to guarantee they are financially covered in the event of an accident. The only issue is, most people will only have the minimum amount of insurance coverage to meet their state’s requirements for driving legally. The state minimum is typically liability insurance, which will cover the cost of the other driver’s damages or injuries.
While some form of coverage is better than having nothing at all, if you are in an accident where you endure serious injuries or damages, a policy that would take care of your medical costs or repair fees could be beneficial as well. That’s where a full coverage auto insurance policy can help.
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The Basics of Full Coverage Auto Insurance
Full coverage auto insurance is a combination of several different auto insurance policies that provide the optimal amount of coverage. There isn’t a policy called “full coverage insurance” in the auto insurance industry. Instead, it is a term often used to describe the multiple types of coverage you can add to your current policy to increase your coverage level.
Full coverage auto insurance is usually a combination of both required and optional forms of coverage. These often include the following :
- Collision Coverage
Pays for car repairs if you are responsible for a crash with another vehicle. It also pays if you have a collision with another object, such as a pole or tree.
- Liability Coverage
This coverage pays for the replacement of your car or repairs if it is either damaged or stolen. Liability will cover causes, including animal collision, theft, damage caused by extreme weather, vandalism, falling objects, or fire.
- Comprehensive Coverage
This coverage will cover the cost of medical treatment for other people’s injuries. It will also pay for any property repairs needed if you caused the crash to occur.
Additional options may include Uninsured and Underinsured driver coverage as well. Many companies add these because they are required by law in several U.S. states. These policy options cover the cost if another motorist hits you, but they do not have enough insurance to cover your injuries or repairs, or they do not have insurance at all. Uninsured driver coverage for property damage is another good option to consider when you want full coverage auto insurance.
Who Needs Full Coverage Auto Insurance?
It is not required by law that drivers have full coverage insurance. Most states only require drivers to have liability insurance. But that will not cover the cost of car repairs or injuries. To make sure you are fully protected while on the road, a full coverage auto insurance plan is recommended.
You may consider full coverage auto insurance if:
- You often drive in heavy traffic you are unable to afford expensive repairs or may not be able to replace your damaged car following an accident you have a brand new or expensive car You live in an area where extreme weather or car theft rates are a high risk
If you have an older vehicle, full coverage may not be worth the additional cost. Remember that comprehensive and collision insurance will only reimburse the cash value amount at the time your car was damaged or stolen.
It’s important to discuss your insurance needs with your agent and find out what type of coverage they recommend for your current vehicle. They could help you decide if full coverage options were beneficial to you if you were involved in an accident.
What to Consider When Shopping for Full Coverage Insurance
When considering auto insurance options from different carriers, there are a few things you should keep in mind when submitting details for a quote.
- Use the Same Deductibles and Liability Limits
By using the same deductible and liability limits when comparing quotes, you will have a better idea of which policy and premium cost is right for you.
- Consider Add-On Coverage Options
Extras such as accident forgiveness and gap insurance coverage could be more useful for some drivers and not so much for others. When considering full coverage options, you may want to consider these add-ons if you could benefit from what they offer.
- Use the Same Information with Each Quote
When you are using multiple tools or websites to get car insurance quotes, make sure that all your driver, car, address, and driving history details match up. It will help ensure you get the most accurate results.
To learn more about full coverage auto insurance, contact our insurance experts today for more details. We have licensed professionals available who are happy to answer any questions you have.