Full Coverage Car Insurance

What is full coverage insurance?

Full coverage car insurance can be tricky to define since the meaning of “full coverage” can change depending on who you ask. For some, full coverage auto insurance may mean a policy that includes liability, comprehensive, and collision coverage. For others, full coverage auto insurance may include protection for uninsured motorists and additional medical payments coverage. It’s important to look at all your coverage options along with the deductible and limits for each before deciding what fits best for your financial situation. Tell your agent what specific coverage you're looking for rather than using the term “full coverage.” Finding a policy that provides 100% coverage in every situation is virtually impossible, so you should choose the coverages and limits that best suit your personal requirements.

Typical coverage options that some may think should be found in full coverage car insurance include:

Liability insurance

Liability coverage is the most basic type of car insurance coverage and is often required by law in most states. It covers damage or injuries that you may cause to other drivers or their property while operating your vehicle. This can include damage to their car, as well as medical expenses if they are injured in an accident that you are found to be at fault for.

Liability coverage is typically sold in 2 parts: bodily injury liability and property damage liability.

• Bodily injury liability covers the cost of injuries to pedestrians, passengers in your car, or people in other vehicles if you are found legally liable for an accident.
• Property damage liability covers the cost of damage to someone else's property, such as a car or building, that you caused while driving.

Collision insurance

Collision car insurance protects your vehicle if it is damaged in an accidental collision with another car or object. Your insurance company pays for the cost of repairs or the actual cash value of your car, less your deductible, regardless of who is at fault. You can lower your monthly car insurance premiums by choosing a higher deductible, but you'll have to pay more out of pocket if you have an accident. Collision coverage doesn't pay for normal wear and tear, mechanical problems, or incidents like hitting an animal or having your windshield damaged by road debris—for that, you'll need comprehensive coverage. Whether or not you should get collision coverage depends on your vehicle's value and your personal situation, but if you're financing or leasing your vehicle, it's likely required by the lienholder or lessor.

Comprehensive insurance

Comprehensive car insurance is an important coverage option for anyone looking for extra protection for their vehicle. This type of insurance covers vehicle damages not caused by a collision; this includes theft, fire, vandalism, or natural disasters. It also covers scenarios like hitting an animal or having an object fall on your car. However, comprehensive car insurance doesn't cover normal wear and tear, mechanical problems, or collisions. When choosing a deductible for your comprehensive coverage, it's important to consider your risk level and budget. If you have a newer car or are financing or leasing your vehicle, comprehensive insurance is likely a good choice for you.

Uninsured motorist, underinsured motorist coverage & uninsured collision

Uninsured, underinsured motorist bodily injury coverage and uninsured collision coverage are important types of auto insurance to consider adding to your policy. Uninsured motorist bodily injury (UMBI) coverage can provide you protection for some bodily injury damages and uninsured collision coverage can protect your vehicle from some property damage caused by an uninsured driver. In some situations, the term “uninsured motor vehicle” may include a hit-and-run driver whose identity is unknown. This coverage may also extend to injuries you sustain as a pedestrian or passenger in someone else's car. Underinsured motorist coverage may provide additional protection if the at-fault driver's insurance coverage is insufficient. While health insurance may cover some of your medical costs, uninsured and underinsured motorist coverage may help fill in the gaps and provide additional financial protection. Be sure to speak to your insurance agent about your options and weigh the pros and cons of each type of coverage.

Medical payments coverage

Medical payments coverage is an optional type of car insurance that helps pay for medical expenses if you and/or others in your car are injured in an accident, regardless of who is at fault. This coverage also applies to you and relatives living in your household who are injured as pedestrians or in someone else's car. Medical payments coverage can help pay for medical bills and funeral expenses, which can be especially valuable if you don't have health insurance or if your health insurance doesn't cover all necessary treatments. You can also purchase excess medical payments coverage to help with expenses not covered by your primary health insurance. When selecting your medical payments coverage limit, consider factors such as the deductibles on your health insurance and how much you can afford to pay out of pocket.

Rental car reimbursement

Rental car reimbursement coverage is an optional type of car insurance that reimburses you for the cost of renting a car if your vehicle is damaged or stolen and needs to be repaired or replaced. When purchasing rental car reimbursement coverage, you'll typically choose a daily limit for your reimbursement amount, such as $30 or $50 per day. The length of time you can receive rental car reimbursement depends on your policy, with some offering coverage for a few days and others for several weeks. While rental car reimbursement coverage is not required by law, it can be a valuable addition to your insurance policy, especially if you rely on your car for work or other important activities. When deciding whether to purchase this coverage, consider the cost of renting a car, your ability to pay out of pocket, and how long you’ll need the rental.

Frequently asked insurance questions

If there is no such thing as full coverage car insurance, how do I know if I am fully covered for automobile accidents and losses?

"Full coverage car insurance" is an industry term that doesn't actually refer to a specific type of insurance. Instead, it's often used to describe any combination of the various coverage types available, such as liability, collision, comprehensive, and medical payments. Each of these coverage types has its own specific benefits and limits, so it's important to understand what they do and don't cover and what coverage you are choosing and declining for your policy. Liability insurance, for example, covers damages to other people and their property, while collision insurance covers damages to your own vehicle from collisions. Comprehensive insurance covers damages to your vehicle from non-collision events like theft or weather damage, and medical payments coverage pays for medical expenses if you or your passengers are injured in an accident. When people talk about "full coverage car insurance," they often mean a policy that includes all these coverage types. However, the specifics of what's covered will depend on the policy and its limits. It's important to work with your insurance agent to find the right combination of coverage types and limits for your needs and budget.

If I’m looking for full coverage car insurance, what can I expect it to cost?

The cost of car insurance depends on several factors, including your driving record, the make and model of your vehicle, the coverage options you choose, and the amount of coverage you need.

Other factors that affect the cost of car insurance include:

• Your location: Insurance rates can vary by state and even by ZIP code. Urban areas tend to have higher rates than rural areas due to a higher risk of accidents and theft.
• Your driving record: If you have a history of accidents or traffic violations, you can expect to pay more for car insurance.
• Your age and gender: Younger drivers and males tend to pay more for car insurance than older drivers and females.
• The make and model of your vehicle: Some cars are more expensive to insure than others due to their cost of repairs or the likelihood of theft.
• Your credit score: Your credit score can also be a factor in determining your car insurance rates.

How to choose the right insurance policy

Choosing the right car insurance policy can be a daunting task, but there are some key things to keep in mind. First, consider your budget and how much you can afford to pay for insurance each month. You'll want to choose a policy with coverages that fits your situation and budget.

Next, think about the specific coverage types you need. Do you want comprehensive coverage to protect against non-collision damage, or just collision coverage to protect against accidents? Do you want medical payments coverage to cover medical expenses for you and your passengers in the event of an accident?

It's also important to consider the limits of your coverage. Make sure you have enough coverage to protect your assets in case of an accident and consider the value of your vehicle and how much it would cost to repair or replace it.

Overall, choosing the right car insurance policy requires careful consideration of your budget, specific coverage needs, coverage limits, and insurance company reputation. Work with your insurance agent to find the best policy for your needs and budget.

Get the peace of mind you deserve on the road

Understanding car insurance and the various coverage types that often make up what some people refer to as “full coverage” car insurance is an important step in protecting your vehicle and your finances. While there is no one-size-fits-all policy, working with your insurance agent to find the right combination of coverage types and limits for your needs and budget can help ensure that you are adequately protected in case of an accident. Remember to regularly review your policy and adjust your coverage as needed to keep up with changes in your life and driving habits. With the right car insurance coverage, you can drive with confidence and peace of mind.

This information is a helpful overview of automobile policy coverage. Coverage may vary by state or product, and this is not a comprehensive description of all coverages, exclusions, definitions, or provisions that may apply. The information provided is not intended to and does not substitute for or supersede the actual language of an issued policy contract, endorsement, or declarations. For specific terms, definitions, coverages, and exclusions that apply to your particular insurance policy coverage for a specified loss or peril, please read your policy contract, declaration pages and endorsements. Where this information differs from an actual policy contract, endorsement or declarations, the terms for the policy, declarations and endorsement that make up your issued policy will prevail.