Full coverage auto insurance is one of the most comprehensive types of auto insurance policies available. It’s a combination of different insurance coverage types that provide a wide range of protection for you and your vehicle. It’s important to understand what full coverage auto insurance includes to determine if it’s the right option for you.
Bodily Injury Liability Coverage
Bodily injury liability coverage is a type of auto insurance that covers medical expenses and legal fees if you’re at fault in an accident. This coverage also covers the costs associated with pain and suffering. Depending on the state you live in, you may be required to carry a minimum amount of this type of coverage.
Property Damage Liability Coverage
Property damage liability coverage is another type of insurance that is included in a full coverage auto insurance policy. This coverage covers the cost of any property damaged as a result of an accident you cause. This includes the other driver’s vehicle, buildings, fences, and other structures. Depending on the state you live in, you may be required to carry a minimum amount of this type of coverage.
Collision coverage pays for the repair or replacement of your vehicle if it’s damaged in an accident. This coverage also pays for damage caused by objects, such as a tree or a telephone pole. If your vehicle is totaled, collision coverage will pay the market value of your vehicle, minus any applicable deductible.
Comprehensive coverage pays for damage caused by events other than car accidents. This includes theft, fire, vandalism, and weather-related events, such as floods or hail storms. Like collision coverage, comprehensive coverage pays for the repair or replacement of your vehicle, minus any applicable deductible.
Uninsured/Underinsured Motorist Coverage
Uninsured/underinsured motorist coverage provides protection from uninsured drivers and drivers who don’t have enough insurance to cover the costs of an accident they cause. This coverage pays for medical expenses and car repairs if you’re in an accident with an uninsured or underinsured driver.
Personal Injury Protection
Personal injury protection is a type of coverage that pays for medical bills, lost wages, and other expenses if you’re injured in an accident. This coverage is offered in some states and is typically required in “no-fault” states. It pays regardless of who caused the accident.
Rental Reimbursement Coverage
Rental reimbursement coverage pays for a rental car if your vehicle is damaged and needs repair. This coverage is typically optional, but it can be a good idea if you need a vehicle to get to work or other appointments while your car is in the shop.
Gap coverage pays the difference between the actual cash value of your vehicle and what you owe if your car is totaled. This coverage can be helpful if you’re financing your vehicle and owe more than its actual cash value.
Full coverage auto insurance provides a wide range of protection for you and your vehicle. It’s important to understand what’s included in your policy to make sure you’re adequately covered in the event of an accident or other damage. It’s also important to make sure you’re not paying for coverage you don’t need.