A full coverage auto insurance guide is one that helps you to understand each type of coverage that you can choose to have included in your car insurance policy. Full coverage auto insurance is a term that can mean something different to each person. It is most often used in reference to an auto insurance policy that includes physical damage coverage in addition to the state minimum required liability coverages.
State Minimum Liability
There are two basic types of liability coverage designed to provide coverage for damages you, as the insured driver, cause another person in an accident. Bodily injury liability covers injury to the other party, and property damage liability kicks in to cover any damages to the other driver’s car or property. Although the required minimums may be enough to meet state law, they often are not enough to protect you adequately in case of an accident, so make sure you discuss this with your agent.
Collision and Comprehensive
Two basic types of coverages make up the physical damage portion of an auto insurance policy. Collision coverage is designed to cover the costs of damages to your car if you are involved in an accident. Not all physical damages are caused by a collision so comprehensive coverage pays for damages to your vehicle caused by something other than a collision such as hail, wind, fire, vandalism or theft. Most lien holders who require “full coverage” require both types of physical damage coverage.
Uninsured/Underinsured Motorist Coverage
Uninsured motorist coverage is available to cover the costs of an accident caused by a driver who does not have insurance at the time of the accident. Sometimes a driver who causes an accident that results in damages has the minimum level of insurance required by the state or insurance that is just not adequate to cover the damages of a more serious accident. In this case, underinsured motorist coverage kicks in to cover damages not covered by the other driver’s insurance.
For drivers who want to be further reassured of their financial protection in the event of an accident, PIP or personal injury protection coverage is available to cover injuries for themselves and their passengers. Rental coverage designed to cover the daily costs of a rental car while your own car is being fixed or replaced as a result of an accident or loss can also be purchased.
How to Decide if Full Coverage is Needed
Deciding to purchase full coverage insurance is a personal decision that each car owner must make. Drivers who finance or lease a car will be required to carry full coverage auto insurance that includes both types of physical damage coverage in addition to liability. If you own your vehicle outright you need to carefully consider the value and condition of your car to determine if coverage including physical damage is a worthwhile investment.
When purchasing a policy that is considered full coverage, make sure that you completely understand the types and amounts of coverage that are included as well as any exclusions. Understanding the value of your vehicle and how an accident can impact your financial future will help you make an informed decision about full coverage cheap auto insurance quotes.
When looking for car insurance it is always important to remember to compare quotes. Comparing quotes can get you better deals on insurances like teen car insurance and others.