What is Full Coverage Insurance?

Full coverage insurance is a type of car insurance that provides extensive protection for your vehicle. It offers comprehensive and collision coverage in addition to liability coverage, which is mandatory in most states. In this article, we will explain what each of these coverages means and how you can benefit from full coverage insurance.

What does Full Coverage Insurance Include?

Full coverage insurance includes three primary types of coverage – liability, collision, and comprehensive coverage. Let’s look at each of these in detail:

Liability Coverage

Liability coverage is mandatory in most states and covers the costs of damage or injury you cause to others. This coverage includes two parts – bodily injury liability and property damage liability. Bodily injury liability covers the medical expenses of others if you are at fault in an accident, while property damage liability covers the cost of repairing or replacing other people’s property.

Liability coverage provides protection against any lawsuits that might arise from a car accident. Without liability coverage, you could be held responsible for paying for damages or medical bills out of pocket, which can be expensive.

Collision Coverage

Collision coverage pays for the cost of repairing or replacing your vehicle if it is damaged in an accident, regardless of who is at fault. This coverage is often required if you have a loan or lease on your vehicle. Collision coverage also includes damage caused by hitting an object, such as a tree or pole.

Collision coverage does not cover damage to someone else’s property or injuries to others in an accident. It only covers damage to your vehicle.

Comprehensive Coverage

Comprehensive coverage pays for damage to your vehicle that is not related to an accident. This includes damage from theft, vandalism, natural disasters, or hitting an animal. Comprehensive coverage also includes glass damage, such as a cracked windshield.

Comprehensive coverage does not cover damage to another person’s property or injuries to others in an accident. It only covers damage to your vehicle from non-accident-related incidents.

What are the Benefits of Full Coverage Insurance?

The main benefit of full coverage insurance is that it provides extensive protection for your vehicle. With liability, collision, and comprehensive coverage, you are covered for a wide range of situations that could cause damage to your car. This can provide peace of mind knowing that you have protection against unexpected expenses.

Full coverage insurance can also save you money in the long run. Without these coverages, you would be responsible for paying for damage or injuries out of pocket, which can be expensive. By paying for insurance, you are transferring that risk to the insurance company, which can save you a significant amount of money in case of an accident.

FAQs

Do I need full coverage insurance?

It depends on your situation. Full coverage insurance is not mandatory, but some lenders or leasing companies require it. If you own your vehicle outright, full coverage insurance is optional but can provide additional protection.

How much does full coverage insurance cost?

The cost of full coverage insurance depends on many factors, including your driving record, age, and location. On average, full coverage insurance can cost between $800 and $1,500 per year.

What is the difference between liability and full coverage insurance?

Liability insurance only covers damage or injuries you cause to others, while full coverage insurance includes liability, collision, and comprehensive coverage. Full coverage insurance provides more extensive protection for your vehicle and can help cover unexpected expenses.

What is the deductible for full coverage insurance?

The deductible for full coverage insurance varies depending on your policy. A deductible is the amount you pay out of pocket before your insurance starts to cover the cost of a claim. Generally, the higher your deductible, the lower your monthly insurance premiums.

Conclusion

Full coverage insurance provides extensive protection for your vehicle and can save you money in the long run. With liability, collision, and comprehensive coverage, you are covered for a wide range of incidents that could cause damage to your car. If you are considering full coverage insurance, make sure to shop around and compare quotes from different insurance providers to find the best coverage at the best price.