If you’re in the market for car insurance, you may have heard the term “full coverage” thrown around. But what exactly does full coverage car insurance mean? In this article, we’ll explore everything you need to know about full coverage car insurance, including what it covers, what it doesn’t cover, and how to determine if it’s right for you.
Table of Contents
- What is Full Coverage Car Insurance?
- Types of Coverage Included in Full Coverage Car Insurance
- Collision Coverage
- Comprehensive Coverage
- Liability Coverage
- Personal Injury Protection (PIP)
- Optional Coverages to Consider
- Uninsured/Underinsured Motorist Coverage
- Roadside Assistance
- Rental Car Reimbursement
- What Full Coverage Car Insurance Doesn’t Cover
- Factors to Consider When Deciding if Full Coverage is Right for You
- How to Get Full Coverage Car Insurance
- Tips for Choosing the Right Car Insurance Company
- How to Save Money on Full Coverage Car Insurance
- Common Myths About Full Coverage Car Insurance
- Conclusion
- FAQs
What is Full Coverage Car Insurance?
Full coverage car insurance is a type of insurance policy that includes several types of coverage, including collision, comprehensive, liability, and personal injury protection (PIP). While the exact types of coverage included in a full coverage policy may vary depending on the insurance company, in general, it provides more protection than a basic liability-only policy.
Types of Coverage Included in Full Coverage Car Insurance
Let’s take a closer look at the types of coverage typically included in a full coverage car insurance policy.
Collision Coverage
Collision coverage is designed to help cover the cost of repairs to your vehicle in the event of an accident. This includes collisions with other vehicles as well as collisions with objects such as trees or telephone poles.
Comprehensive Coverage
Comprehensive coverage is designed to help cover the cost of repairs to your vehicle in the event of non-collision incidents, such as theft, vandalism, or damage from severe weather conditions.
Liability Coverage
Liability coverage is designed to help cover the cost of damage or injury you may cause to other people or their property while operating your vehicle. This coverage is required by law in most states.
Personal Injury Protection (PIP)
Personal injury protection (PIP) coverage is designed to help cover medical expenses for you and your passengers in the event of an accident, regardless of who is at fault.
Optional Coverages to Consider
In addition to the types of coverage included in a full coverage car insurance policy, there are several optional coverages that you may want to consider.
Uninsured/Underinsured Motorist Coverage
Uninsured/underinsured motorist coverage is designed to help cover the cost of damages and injuries you may sustain in an accident with a driver who does not have sufficient insurance coverage.
Roadside Assistance
Roadside assistance coverage is designed to provide you with assistance in the event of a breakdown, flat tire, or other roadside emergency.
Rental Car Reimbursement
Rental car reimbursement coverage is designed to help cover the cost of a rental car while your vehicle is being repaired after an accident.
What Full Coverage Car Insurance Doesn’t Cover
It’s important to note that full coverage car insurance does not cover everything. For example, it typically does not cover the cost of regular maintenance or wear and tear on your vehicle. Additionally, there may be certain types of damage or incidents that are specifically excluded from coverage.
Factors to Consider When Deciding if Full Coverage is Right for You
When deciding whether or not to opt for full coverage car insurance, there are several factors to consider. These include your budget, the value of your
vehicle, and your risk tolerance. Full coverage car insurance can be more expensive than liability-only coverage, so you’ll need to consider whether the added protection is worth the additional cost. Additionally, if your vehicle is older and has a lower value, full coverage may not be necessary.
How to Get Full Coverage Car Insurance
To get full coverage car insurance, you’ll need to contact an insurance company and request a quote. Be sure to shop around and compare rates from several different companies to ensure that you’re getting the best deal. When selecting an insurance company, be sure to choose a reputable provider with a good track record of customer service and claims handling.
Tips for Choosing the Right Car Insurance Company
When selecting a car insurance company, there are several factors to consider. In addition to price, you’ll want to consider the company’s financial strength, customer service ratings, and claims handling process. You can research these factors by reading reviews, checking ratings from third-party organizations like J.D. Power and A.M. Best, and asking for recommendations from friends and family members.
How to Save Money on Full Coverage Car Insurance
If you’re looking to save money on full coverage car insurance, there are several strategies you can use. These include raising your deductible, bundling your car insurance with other types of insurance (such as homeowners or renters insurance), and taking advantage of discounts offered by your insurance company (such as safe driver discounts or discounts for completing a defensive driving course).
Common Myths About Full Coverage Car Insurance
There are several common myths about full coverage car insurance that can lead to confusion and misunderstandings. One of the most common myths is that full coverage car insurance covers everything, which is not true. Another myth is that full coverage car insurance is always more expensive than liability-only coverage, which is also not necessarily true. It’s important to do your research and understand what your policy does and does not cover before making a decision.
Conclusion
Full coverage car insurance can provide valuable protection in the event of an accident or other unforeseen incident. However, it’s important to understand what is and is not covered by your policy, as well as the factors to consider when deciding whether or not to opt for full coverage. By doing your research and choosing a reputable insurance company, you can ensure that you’re getting the best possible coverage at a price that fits your budget.
FAQs
- Is full coverage car insurance required by law?
- How much does full coverage car insurance cost?
- Does full coverage car insurance cover rental cars?
- Can I add optional coverages to my full coverage car insurance policy?
- What should I do if I’m involved in an accident and have full coverage car insurance?