Full Coverage Car Insurance 101: A Basic Overview

You may hear or see the phrase “full coverage auto insurance” in insurance literature from time to time, but what does it mean? While states only require minimum auto insurance coverage, lenders of auto loans often want to see borrowers pay for full coverage. Here’s a deeper look at what full coverage auto insurance includes.

What is full coverage car insurance?

The term “full coverage car insurance” refers to a combination of insurance plans that provide full protection to you and your vehicle, as well as others, in the event of an accident or other mishap.

What is included in a full coverage policy?

Full coverage includes common auto insurance plans such as liability, collision, and comprehensive coverage. It may include other types of coverage as well. Liability insurance covers damages done to others if you cause an accident. Collision insurance pays for damage to your vehicle if it collides with another vehicle or object, such as a tree. Comprehensive insurance, by contrast, pays for losses resulting from mishaps such as fire and vandalism.

Another type of plan included in full coverage is uninsured/underinsured motorist coverage. This plan protects against colliding with an at-fault driver who does not carry sufficient insurance to pay for damages. Personal injury protection (PIP) and MedPay are plans that cover medical expenses and lost wages for you and others who are injured.

How is liability insurance different from full coverage insurance?

Liability coverage refers to insurance that pays the expenses of others involved in an accident you cause. Full coverage also pays for your medical bills and damage to your vehicle. People who are taking out a car loan usually need full coverage.

Is full coverage worth it?

Full coverage auto insurance is definitely worth it if you’ve invested good money in a vehicle. It protects all your assets in case you get into an accident or if your vehicle is damaged by weather or vandals.

Full coverage car insurance and deductibles

Part of choosing an auto insurance policy includes setting your deductible, which is the amount you pay when you file a claim. Your insurer then pays the rest. By raising your deductible, you can lower your monthly premiums.

How much does full coverage car insurance cost?

Different insurers give different quotes. If you search “auto insurance near me,” you will find a list of different companies with a range of prices. Ask yourself which company provides the best coverage for your budget.

Get the auto insurance you need with Leland Smith!

Instead of getting mixed results when you search “auto insurance near me,”  reach out to us at Leland Smith Insurance. You can call us at (419) 238-7880 or fill out our contact us form and our representatives will get back to you shortly.