What Does Full Coverage Car Insurance Cover? A Complete Guide
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Full coverage car insurance: what does it cover? That's a question many drivers wonder, especially if they're new to buying auto insurance. While you may know you need liability insurance that meets state requirements, full coverage can give you additional protection.
What does full coverage car insurance protect for your car? Here's what you need to know.
What Does Full Coverage Car Insurance Cover?
Key components of a full coverage insurance policy include liability, collision, and comprehensive coverage. Liability insurance compensates others if you're responsible for a wreck, while comprehensive and collision insurance pays for repairs to your vehicle in various situations.
Having full coverage car insurance offers financial reassurance if you're in a collision, regardless of who's at fault. It may also protect you from unforeseen incidents that damage your vehicle.
Liability Coverage: Protecting Against Injury and Property Damage
Liability insurance offers several protections. It pays for the medical expenses of others you injure if you're at fault for an accident. Liability coverage also pays to repair property damaged in an accident you're responsible for, such as someone's vehicle or mailbox.
Liability insurance doesn't reimburse you for your own bodily injury or property damage losses. However, your liability coverage may pay for legal representation if involved parties decide to sue you in an accident-related lawsuit.
States require liability insurance to financially protect other drivers and passengers who suffer losses due to another driver's error or negligence. Without liability coverage, affected parties may be liable for their damages, even if they weren't responsible for the accident.
Collision Coverage: What Happens When You Crash?
While liability auto insurance coverage protects other parties from an accident you're responsible for, it doesn't protect you. That's where collision coverage can help.
If you have collision coverage, your insurance company will pay to repair your vehicle, even if you're at fault for the wreck. It covers accidents involving other drivers or single-car accidents, such as rollovers or collisions with a stationary object.
Drivers who purchase collision insurance select a deductible ranging from $0 to $1,000 or more. If you need to file a collision insurance claim, your policy kicks in once the insurer receives the deductible payment.
If the insurance company determines your car is beyond repair, it will provide you with a check for the vehicle's estimated value.
Drivers who lease or finance a vehicle must carry collision insurance. It's optional if you own your car outright.
Comprehensive Coverage: Protecting Against Non-Collision Incidents
Comprehensive car insurance offers protection against unexpected events that damage your vehicle. Examples of unforeseen events a comprehensive policy may cover include:
- Theft
- Vandalism
- Weather-related damage
- Falling objects
- Fire
You'll set a deductible with your insurer if you purchase comprehensive insurance. You must pay the deductible after filing a claim. The insurance company will investigate and pay to repair your car or reimburse you for its estimated value if the vehicle is totaled.
Comprehensive insurance nicely complements collision coverage since it covers most incidents besides a car accident where your vehicle might sustain damage. Drivers who buy it can feel comfortable knowing their insurer will pay for vehicle repairs if something happens.
Lenders may require comprehensive insurance if you finance or lease your vehicle. Otherwise, it's optional.
Optional Add-Ons with Full Coverage Car Insurance
You can add two other types of coverage to round out your policy.
Uninsured/Underinsured Motorist Coverage: Why It's Important
If a driver without insurance or whose coverage isn't enough to pay for your losses hits you, you'll appreciate an uninsured/underinsured motorist policy.
Uninsured/underinsured motorist coverage pays for your bodily injuries and property damage that arise from a collision with someone without insurance or who doesn't have enough insurance to compensate you fully. Your uninsured/underinsured policy also pays for bodily injuries to passengers in your vehicle.
Medical Payments and PIP: Covering Injuries After an Accident
Medical payments and personal injury protection (PIP) cover your and your passenger's medical costs, pain and suffering, lost wages, and similar expenses stemming from an accident. If you add it to your policy, you can access medical payments and PIP regardless of who is responsible for the collision.
Some states include this type of coverage as part of their insurance requirements. It's wise to check your state's laws to determine whether they're mandated or optional.
Common Misconceptions About Full Coverage Car Insurance
Auto insurance is a must-have for any driver. At a minimum, you need insurance that meets state requirements. If you opt for full coverage, you'll receive more protection to ease your mind if an accident occurs.
What Full Coverage Doesn't Include: Wear and Tear, Mechanical Failures
While full coverage offers extra protection against accidents and unforeseen events, it won't cover general wear and tear or mechanical defects. If your brakes wear out or your tires need to be replaced, you can't turn to your insurance coverage for help. Instead, you'll need to pay the repair costs out of pocket. If you have a vehicle warranty or maintenance coverage through a dealership, it may pay for the vehicle's repairs.
Is Full Coverage Right for Every Driver?
While full coverage offers extensive benefits, it may not be necessary for everyone. If your vehicle is paid off and isn't worth much, buying full coverage insurance may be unnecessary. You'll need to evaluate your personal circumstances to determine whether full coverage makes sense or if liability coverage is enough.
Use EverQuote to Compare Full Coverage Car Insurance Options
If you're searching for full coverage auto insurance, you probably know how important it is to compare quotes from different providers. Rates vary widely, so comparing your options can help you find an affordable policy. Inquiring about car insurance discounts can also help you secure a lower rate.
EverQuote makes it easy to compare insurance quotes. When you request a full coverage quote through us, we'll provide you with a custom comparison of different provider rates. That way, you can find a policy that best suits your budget. It only takes a few minutes, and it can save you money. Get started today with EverQuote!