Christopher J. Boyce Senior Insurance Specialist at InsuranceBlogTips.com - Helps you organize your finances and projects the results of your savings and investments.

Full Coverage Insurance as Your Life Changes

3 min read

Full Coverage Insurance as Your Life Changes

Full coverage insurance is one of the highest forms of insurance that a person can have on their car. They are going to find that this is going to cover them in almost any circumstances that they find themselves in. However, many people are uncertain of just what full coverage is going to offer them and just why they should consider this coverage for their vehicle.

Fully covered is a good option for people since they are going to find that it is going to provide the coverage that they need that is mandated by the state, plus everything else that is going to help them out. For example, they will find that most full coverage insurance is going to give them the ability to have car replacement should their car be totaled that is going to equal the car that has been totaled. The basic full coverage policy is going to include collision and comprehensive coverage.

Full Coverage Insurance as Your Life Changes

However, most people find that their coverage will also include uninsured or under insured coverage since this is usually required by most states for those that are driving to have. This is going to increase the premium a bit, thus it is something to find out if you need or not by law. But, even if you do not have this mandated by the state, it is still a great coverage to have in your full coverage policy.

Understanding Full Coverage Insurance

When people think of fully covered they usually think that they are getting everything that the insurance company is offering. However, that is not the case. For example, some coverage’s that are offered are going to be something that the person has to ask for. The use of rental car coverage is something that is not automatically included in most full coverage policies, thus the person that wants this is going to have to ask to get this from the company.

They will find that most companies have this, plus towing coverage that is meant to help them should they become stranded somewhere. There are some other parts of full coverage that the person will also get use of if they ask. This can include the ability to use their network of certified mechanics when there is a problem and they will offer a guarantee on the work that is being done, which is a great coverage to have when the car needs some major work.

Shopping around for full coverage insurance is something that a person must do in order to make sure that they are getting the best price that is out there. They are going to find that this is even more important with full coverage than with the other types of coverage that the person can get. The reason for this is that full coverage is very expensive and the cheaper that you can get this, the better off you will be.

However, the person needs to make certain that they are not getting subpar the insurance. They still need to make sure that the insurance is going to provide them with the coverage that they would need if they were ever involved in an accident.

When it comes to who should consider fully covered insurance, the person will find that there are several circumstances in which the person is going to want to consider this. For example, if you are still paying for your vehicle or are leasing your car, then you must have full coverage according to the loan and lease agreement that is signed at the time. For those that are driving newer cars, they will find it worthwhile to ensure that they have full coverage in the event that their car becomes damaged and they need a replacement.

Difference Full Coverage Insurance vs Liability Insurance

In order to drive in any state in the country, people are required to purchase liability coverage. They must also have proof that they have purchased this insurance with them whenever they drive their vehicles. This shows that they are able to be responsible for any damages that they cause if they hit another vehicle. Liability coverage, in most states, is all they must purchase by law, but they may also want to purchase extra coverage for their own vehicles and this is what full coverage insurance is about.

Liability Coverage

The purpose of liability coverage is to pay the medical expenses and the property repair bills that result from an accident that the policyholder has caused. In states that allow drivers to sue each other when an accident has occurred, someone has to be declared the cause of the accident. The person who caused the accident is the one who will be responsible for paying all medical bills and property damage repair bills.

Bodily Injury Liability

After the at-fault driver has been determined, everyone who was hurt files a claim with that person’s insurance company for payment of their medical bills. The state has set an amount of money for bodily injury liability that will be designated toward the medical costs of one person. They also would have required a set amount for more than one person who was hurt in the accident.

Property Damage Liability

During the car collision, property will often be damaged, and the at-fault drivers also need to be responsible for these repair bills. Similar to bodily injuries, the states have set an amount of money that will go toward everyone who files a claim for repairs done on their property that was damaged in the accident.

Full Coverage

Full coverage includes liability coverage, but it also includes various types of optional insurance. The exact definition of full coverage will be different for each insurance company but, generally, it refers to collision and comprehensive coverage. Liability coverage only applies toward third party bodily injuries and property damage. The policyholder will receive nothing from this coverage, but the at-fault driver will also have bodily injuries and property damage.

Collision Coverage

Collision coverage repairs the policyholder’s vehicle no matter who is given the responsibility for having caused the accident. It will also pay to replace the vehicle if it needs to be totaled.

Comprehensive Coverage

Comprehensive coverage pays to repair or replace the vehicle if it sustains damage in any way other than a car crash. One example of another cause of damage is the damage that comes from vandalism.

Drivers aren’t required to buy any more than the liability coverage their states have mandated that they purchase but if they want to have money for their own vehicles, they are free to purchase full coverage that will give them the amount they will need to pay for their own repairs.

Christopher J. Boyce Senior Insurance Specialist at InsuranceBlogTips.com - Helps you organize your finances and projects the results of your savings and investments.

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