Full coverage auto insurance refers to a combination of insurance coverages that protect a driver financially for damages to their vehicle, the occupants of their vehicle, and other vehicles and passengers in an accident. No insurance policy can cover you and your vehicle in every possible circ*mstance, but full coverage protects you in most of them.
What Is Full Coverage?
So what does full coverage car insurance cover? In most cases, it includes liability, comprehensive, and collision coverage. Collision and comprehensive will protect you and your vehicle if you get into an accident. If you're found at fault for an accident. liability will pay for damages you might cause to others.
Nationwide says it is important to realize that full coverage helps provide the best possible protection, but you still have to pay your deductible if you cause an accident. Most states have minimum requirements for liability coverage, but you can usually choose the amount of collision and comprehensive coverage. You can also determine the amount of deductible that you feel comfortable paying.
Since full coverage is not a type of policy, it technically doesn't cover anything. The package you build combines the different types of insurance. These include:
1. Liability Insurance. This coverage pays for damages that are the result of an accident that you are found responsible for. It is required by law in every state except New Hampshire.
2. Collision insurance. This covers damages that are the result of many kinds of incidents that occur when your car is in motion. It covers your vehicle if you hit a guardrail, a fence, or a light post, for example.
3. Comprehensive insurance. This covers damage to your vehicle that is not due to an accident. It most likely will occur when your car is not moving. For example, a tree falls on your vehicle during a windstorm, or when a thief breaks a window.
What Are the Available Coverages?
The goal of car insurance is to protect you financially if you are involved in an accident. According to The Balance, there are numerous options for coverage, limits, and deductibles. Some of the options include:
1. The highest available liability limits. These limits can go up to and over $250,000 per person for bodily injury, up to $500,000 per accident, and up to $100,000 and over for property damage.
2. The lowest available deductible for collision and comprehensive coverage. Some companies offer a $0 deductible, but in most cases, it will be $100, $250, or up to $500 per incident.
3. Uninsured motorist coverage and underinsured motorist coverage with limits that match the liability coverage in your policy for bodily injury.
4. Some states offer uninsured motorist coverage for property damage.
5. All available coverages for medical expenses in the highest amounts possible. This is called personal injury protection in no-fault states, and it's called medical payments coverage in most other states.
6. Rental reimbursem*nt
7. Coverage for towing and the labor involved.
8. Additional coverages for preferred customers.
What Does Full Coverage Pay For?
When you have full coverage on your vehicle, it typically covers:
1. The damage you cause to others, up to the limits of your policy.
2. Damage to your car, up to the fair market value, minus the deductible determined in your policy if you are at fault, or if the other driver involved in the accident does not have insurance.
3. Damage due to a natural disaster or theft.
4. If you are at fault, payment for medical treatment for you and your passengers.
5. Injuries to you and your passengers if an uninsured driver hits you.
What Doesn't Full Coverage Insurance Pay For?
In most cases, full coverage insurance will not cover:
1. Damage due to street racing
2. Damage due to off-road driving
3. Use of the vehicle in a car-sharing program
4. Catastrophes, such as war
5. Destruction to the car or confiscation by government or civil authorities
6. Business use of the vehicle for delivery purposes
7. Intentional damage
What Are the State Minimum Requirements for Full Coverage?
Every state can set its own minimum requirements for auto insurance. Most states only require that you carry bodily injury and liability coverage. Additional coverages for your vehicle are not required.
Comprehensive Coverage
Comprehensive insurance helps to pay for physical damage to the vehicle or to replace it when the damage is not the result of a collision. It could be damage due to theft, wind, hail, or falling objects such as a branch or a tree. Damage that occurs if you hit an animal is also covered under comprehensive insurance.
Collision Coverage
Collision coverage is also part of full coverage. This covers your vehicle when it is damaged in a collision with an object or another vehicle. It will also cover your vehicle if it is involved in a single rollover accident.
Collision and comprehensive coverage usually come as a package, so you don't get one without the other. This means that your vehicle is covered for both collision and non-collision damage.
Rental Reimbursem*nt Coverage
Rental reimbursem*nt coverage is sometimes part of full coverage. This covers a rental car while yours is in the shop for repairs after an accident or a covered loss. The insurance will usually cover up to a set dollar amount each day for a predetermined number of days.
What Is a Deductible?
A deductible is the dollar amount that you, the insured, have to pay before the insurance will pay your claim.
What Is a Limit?
The coverage limit is the maximum dollar amount that a car insurance company will pay for a covered claim. Once the limit is reached, the insured is responsible for paying for the rest.
It is important to remember that full coverage is not a type of policy, but a combination of insurance coverages. The three main types of coverage are liability, comprehensive, and collision, but there are others you can buy to help protect your finances if you are responsible for an accident.
https://www.nationwide.com/lc/resources/auto-insurance/articles/what-is-full-coverage-auto-insurance
https://www.thebalance.com/understanding-full-coverage-auto-insurance-527412
https://www.allstate.com/tr/car-insurance/what-is-full-coverage.aspx
https://www.progressive.com/answers/full-coverage-car-insurance/
Hearst Autos Research
Hearst Autos Research, produced independently of the Car and Driver Editorial staff, provides articles about cars and the automotive industry to help readers make informed purchasing choices.
