Full-coverage auto insurance policies include coverage for both liability claims and physical damage, such as collision and comprehensive coverage. However, no insurance fully covers all types of events. Coverage options also vary between states and insurers.
What Does Full-Coverage Car Insurance Include?
The term “full coverage” typically refers to a combination of comprehensive, collision, and liability coverage. However, each insurance company may have a different idea of what should be included.
At a minimum, full coverage includes the coverage options required in your state. Almost every state requires liability insurance. Comprehensive and collision are the next two most common types of coverage.
Of course, not all companies consider comprehensive and collision coverage necessary for “full coverage”. For some insurance companies, “full coverage” simply means that you’re fully covered according to the state requirements.
Instead of assuming that a full-coverage policy covers repairs or replacing your vehicle, you should review the details of the policy, including available coverage options and limits.
What Are Optional Coverages?
Optional coverage includes coverage solutions not required by the state where you live. While they’re not required, optional coverage can increase your protection.
Basic liability coverage only covers damages and injuries to other parties. If you get in an accident and damage your vehicle, liability coverage will not cover your repairs. For this, you need collision coverage. It can pay to repair or replace your car, truck, or SUV.
Full-coverage insurance also typically includes comprehensive coverage, which is used to address all events other than car accidents. If you’re the victim of theft, vandalism, or severe weather, comprehensive coverage can provide you with compensation.
How Much Does Full-Coverage Car Insurance Cost?
The cost of full-coverage car insurance can vary significantly depending on where you live, the type of vehicle you drive, your age, and many other details.
The deductible that you select also plays a major role in determining your insurance premium. Choosing a higher deductible can lower your premium payments.
Most Common Types of Coverage
Here’s a quick look at some of the most common types of coverage available. Keep in mind that some of these options may not be available in every state.
Liability Coverage
Liability coverage is the minimum coverage needed in most states. It pays for injuries and damage that you cause to others. This includes personal injuries, vehicle damage, and property damage. It’s protection in case you’re at fault in an accident. However, it doesn’t cover any repairs for your vehicle.
UMBI/PD Coverage
Many insurance companies offer uninsured/underinsured motorist insurance. This type of insurance covers your damages or injuries when another driver is at fault but doesn’t have the necessary coverage. This type of coverage ensures that your expenses are covered, regardless of the other driver’s insurance situation.
Medical Payment Coverage
Medical payment coverage can cover your medical bills. The coverage also applies to passengers in your vehicle when the accident occurs, whether you’re at fault or not. It covers hospital visits, surgery, X-rays, and other medical costs.
Comprehensive Coverage
Comprehensive coverage covers vandalism, theft, fire, weather-related damage, and other issues not involving a collision. With this coverage, you can get compensation for repairing or replacing your vehicle. However, this type of coverage also includes a deductible, which is subtracted from the total payout for your claim.
Collision Coverage
Collision coverage provides compensation that you can use to repair or replace your vehicle if you’re involved in a collision. You receive a check for the damages minus the deductible. The insurance company covers the costs, even if you’re at fault.
Loan/Lease Payoff Coverage
A loan/lease payoff coverage option can help cover the outstanding balance on a loan or lease. It’s used to cover the gap between the value of your vehicle and the amount that you still owe. The limit is typically a quarter of your vehicle’s value.
Rental Car Reimbursement
With rental car reimbursement, the insurance company will cover the cost of renting a car while you wait for repairs to your vehicle after an accident. This is a convenient type of coverage that helps minimize the disruption of dealing with repairs.
Roadside Assistance
You can use roadside assistance coverage to cover the costs of dealing with a car breakdown. If your car breaks down, you may need towing services, a tire change, a jump start, a lockout service, or another form of roadside assistance. These services ensure that you’re never left stranded on the road.
Trip Interruption
With trip interruption insurance, you can get reimbursed for the cost of expenses if your car breaks down during a trip far from home. For example, if your car breaks down out of town, you may need to pay for a hotel, meals, and other services.
Conclusion
In the end, full coverage auto insurance doesn’t fully cover everything. It typically covers liabilities for other people’s injuries and damages, along with collision and comprehensive coverage. However, you have access to a variety of additional types of optional coverage to suit your needs. Review all coverage options to extend your protection.
