Full Coverage on Car Insurance: Protecting Your Investment

Car insurance is a critical investment for any car owner to protect their vehicle, their passengers, and themselves in the event of an accident. Full coverage car insurance provides more comprehensive protection, covering not only damage to your car but also damage to others’ property and medical expenses. In this article, we’ll explore what full coverage car insurance entails, how it differs from other types of car insurance, and how to choose the right coverage for your needs.

What Is Full Coverage Car Insurance?

Full coverage car insurance is an insurance policy that combines two types of coverage: liability coverage and physical damage coverage. Liability coverage covers damage that you cause to other people’s property or bodily injuries that you cause to other people in an accident. Physical damage coverage covers damage to your own car in an accident, regardless of who is at fault. Full coverage car insurance includes both types of coverage, providing you with the most comprehensive protection possible.

What Does Liability Coverage Include?

Liability coverage is divided into two parts: property damage liability and bodily injury liability. Property damage liability covers damage that you cause to other people’s property, including their vehicles, homes, and other property. Bodily injury liability covers medical expenses, lost wages, and other damages that you cause to other people in an accident.

Every state requires drivers to have a minimum amount of liability coverage, but it’s often a good idea to have more than the minimum coverage to protect yourself in case of a serious accident. Liability coverage will only cover up to the limits of your policy, so if your policy limit is $50,000 and you cause $100,000 in damages, you will be responsible for paying the other $50,000 out of pocket.

What Does Physical Damage Coverage Include?

Physical damage coverage is divided into two parts: collision coverage and comprehensive coverage. Collision coverage covers damage to your car in an accident, regardless of who is at fault. Comprehensive coverage covers other types of damage to your car, such as theft, vandalism, or hail damage.

Collision coverage is usually required if you have a car loan or lease, but it’s a good idea to have it even if you own your car outright. Comprehensive coverage is optional, but it can provide additional protection for your car.

How Is Full Coverage Car Insurance Different from Other Types of Car Insurance?

Full coverage car insurance differs from other types of car insurance in that it includes both liability coverage and physical damage coverage. Liability-only car insurance only includes liability coverage, while collision-only car insurance only includes collision coverage. Comprehensive-only car insurance only includes comprehensive coverage.

If you have liability-only car insurance and you cause an accident that damages your car, you will not be covered. If you have collision-only car insurance and your car is stolen, you will not be covered. Full coverage car insurance provides the most comprehensive protection, covering both damage to your car and damage to other people’s property.

How Do I Choose the Right Full Coverage Car Insurance?

Choosing the right full coverage car insurance policy can be challenging, as there are many factors to consider. Some of the most important factors to consider include:

You should also shop around and compare quotes from different insurance companies to ensure that you are getting the best coverage at the best price. It’s important to read the fine print and understand what is and isn’t covered under your policy.

FAQ: Common Questions About Full Coverage Car Insurance

1. Is full coverage car insurance mandatory?

No, full coverage car insurance is not mandatory. However, liability coverage is mandatory in most states.

2. How much does full coverage car insurance cost?

The cost of full coverage car insurance varies depending on many factors, including your driving record, the type of car you drive, and the coverage limits you choose. On average, full coverage car insurance costs around $1,500 per year.

3. What does full coverage car insurance not cover?

Full coverage car insurance does not cover everything. It typically does not cover wear and tear on your car, mechanical breakdowns, or damage to your car from driving under the influence of drugs or alcohol.

4. Do I need full coverage car insurance if I have a new car?

If you have a new car, it’s a good idea to have full coverage car insurance to protect your investment. However, if you have an older car that is paid off, you may be able to get by with liability-only coverage.

5. Can I add additional coverage to my full coverage car insurance?

Yes, you can add additional coverage to your full coverage car insurance, such as roadside assistance or rental car reimbursement. However, each additional coverage will increase your premium.

Conclusion

Full coverage car insurance provides comprehensive protection for your investment, covering damage to your car and damage to other people’s property. When choosing a full coverage car insurance policy, it’s important to consider factors such as policy limit, deductible, and additional coverage. Compare quotes from different insurance companies to ensure that you are getting the best coverage at the best price.