When you are considering which insurance policy to purchase, you’ll want to make sure you are fully protected with a full coverage plan that will cover you in nearly every scenario. However, the phrase “full coverage” can be a little misleading at first – it actually doesn’t exist. It’s a term used to describe the different combination of options that make up your own personal coverage plan. Normally, a policy will include liability, comprehensive and collision coverage and be called “full coverage,” however there are other options that you can include to further extend protection. That is why you need to completely understand the various aspects of coverage you can select from in the event of an accident.
In most states, liability coverage is a legal requirement and will cover the minimum amount. Essentially, if you get into an accident and you are at fault, it covers the injuries or damages to another person or their property. And when you are choosing this coverage, you have the ability to pick the basic policy required by the state you live in. However, you will not have full coverage on your liability, which may not provide the protection you may need if you were involved in a more serious accident. You would then be responsible for any of the excess costs that were not covered by your policy.
If anything unexpected happens to your vehicle other than a collision, comprehensive coverage will cover you, and it’s usually included in addition to liability coverage. It provides protection against things like weather events, natural disasters or damage caused by falling objects, such as rocks and tree branches. Comprehensive coverage may also pay for damages resulting from fires, broken windshield, vandalism and may even cover you if your vehicle is stolen. Without comprehensive coverage, full coverage is not possible.
Collision coverage is vital and will help pay for any damages if you are involved in an accident due to a collision – that could include another vehicle or object. This coverage only covers your vehicle and gives you the broadest protection and is always included in a full coverage policy. It guarantees your vehicle will be covered regardless of what caused the damage.
And optional coverage to further build your full coverage plan to be as protected as possible can include:
- Uninsured and underinsured motorist coverage
- Medical payments coverage
- Personal injury protection
- Roadside assistance
- New vehicle replacement coverage
- Rental car reimbursement
Knowing that full coverage means different things to different people, understanding the various types of coverage offered will help you explore your options as you create your own full coverage policy for your specific needs and budget.
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