In theory, a full coverage auto insurance plan that offers total protection for your car or truck makes a lot of sense. You could just sign the policy and have complete cover no matter what happens. Unfortunately, it doesn’t work that way. There’s no single type of car insurance that does it all. What you can do, though, is get different plans that cover different aspects. And when you combine them, you have enough insurance to counter nearly any situation.
Another important point about auto insurance is that the definition of full coverage may change depending on who you ask. Because what you need to be fully protected will be different to what some other person in another state, driving a different type of car, will need.
So, as we get into this article, get the idea of full coverage out of your mind. Instead, replace it with: “full coverage for me.” Your target as you try to find the perfect car insurance is to find one that’s extensive enough to meet your needs, and that’s what we’ll describe below.
What does full coverage auto insurance entail?
For your car to be completely insured, it’d mean you have cover against damage that happens due to weather conditions, vandalism, hitting an animal, or an accident where you’re the faulty party. It means getting cash back that represents the full value of your vehicle if it gets stolen. However, there are separate insurance plans that cover each of the situations described above, and while some of them overlap, others do not.
Here is a description of the common auto insurance plans, what they cover, and who needs them.
- Property damage liability: this covers the cost of any damage you cause while driving. Say you hit someone else’s vehicle and you’re the faulty party, or you hit a building or a fence – property damage insurance will cover the expenses incurred. This type of auto insurance is required in most US states. Please note that it does not cover the cost of repairing your car.
- Bodily injury liability: this plan covers the medical cost of any injury (or death) you cause while driving your car. But it doesn’t cover your injuries. This type of insurance is also required by most states.
- Uninsured motorist property damage liability: this pays for any damage to your vehicle or property by an assailant who has no insurance (or is underinsured). Only 7 states in the US (and Washington DC) require motorists to get this coverage.
- Bodily injury liability (Uninsured motorist): this pays for your medical costs if you’re hit by a motorist who has no insurance (or is underinsured). 20 states in the US (and Washington DC) require this on all policies.
- Collision coverage: this covers the repair on your car if you hit another vehicle, a tree, a telephone pole, or a house. It’s like property damage liability, but this time, you get the benefits. If your car is a lease, or you took out a loan to buy it, the lender will probably require collision coverage.
- Comprehensive coverage: this covers the repair costs from damages that happened due to events outside your control. Say you hit an animal while driving, your car gets stolen or vandalized, or weather effects cause some damage. Just like with collision damage, you’ll need this if your car is a lease or you got an auto loan.
As you can see, there’s a plan for different situations. So, does full coverage mean you combine everything on this list? Probably not. Because you’d still need to get additional coverage for emergency roadside assistance, custom parts and equipment, and new-car replacement insurance. So, as mentioned earlier, forget about full-coverage insurance.
How much car insurance do you need?
The idea isn’t to get all types of insurance, but to get the ones you actually need. For example, depending on the state you live in, there will be some mandatory auto insurance. Also, lenders will typically have minimum requirements if you took out a loan or lease. These conditions are non-negotiable. But aside from them, the second most important thing to consider is your situation: do you have a new car? Live in a city with extreme weather conditions or high crime rates? Drive regularly in heavy traffic or at odd hours? Furthermore, can you afford to fix your car out-of-pocket, or get a replacement if it’s stolen?
Depending on your answers to these questions, you can decide on what type of coverage you need. But if you’re still undecided, it may help you to speak to a professional. An auto insurance specialist can help you get a sense of your needs, how much you’ll need for premiums, and any other concerns you may have. Subsequently, you’ll know more about choosing the right plan, how to save costs, and feel better about your auto insurance situation. If you would like to speak with one now, follow this link to book a FREE consultation.
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