Full Coverage Car Insurance, Explained
Typically considered the gold standard for a car insurance policy, full coverage insurance refers to a policy that includes both comprehensive and collision coverage, as well as any other types of insurance mandated by your state.
Full Coverage Basics
For starters, all full coverage policies will include the following:
Comprehensive coverage: This covers your car if it is damaged by an unexpected incident involving the weather, animals, fire or other, non-vehicular causes.
Collision coverage: This covers your car in the event of a collision with an object, including other vehicles, trees, or buildings. This coverage works regardless of fault.
Note that both of these types of coverage cover your vehicle, not the other person’s vehicle (if someone else is involved). To cover damages suffered by the other party in an accident, you’ll need:
Bodily injury liability: This covers injuries caused by an accident. Coverage for this comes in per person and per accident amounts. Frequently recommended amounts for this are 100/300, or 100K per person and 300K per accident, though each state has their own set of insurance requirements.
Property damage liability: This covers damage caused to property as a result of an accident, such as motor vehicle damage or damage to someone’s home. It is commonly recommended that drivers be insured for 50K in property damage liability, but requirements will vary by state.
In some states, medical coverage is also considered standard when it comes to car insurance (with some states even requiring these types of coverage):
Medical payments (MedPay): MedPay covers accident-related medical costs.
Personal Injury Property (PIP): Similar to MedPay, PIP covers medical fees as well as other costs including lost wages and child or household care costs incurred as a result of the accident.
While both MedPay and PIP provide relief for medical costs, PIP is overall more comprehensive and is a requirement in 12 states, all of which are no-fault states (states in which fault is not assigned after an accident). Though MedPay is less comprehensive in what it covers, it is more flexible regarding who it covers -- MedPay can benefit not only the drivers involved in an accident, but also their passengers as well as any affected bystanders.
Both of these types of insurance come with pros and cons, and where not required can offer multiple benefits. Which is right for you, if either, depends on where you live and what you can afford when it comes to insurance.
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Other Insurance Options to Consider
Beyond the coverage types already discussed, there are bonus options you may want to consider if you truly want to feel secure in your coverage. Here are a few:
Uninsured motorist coverage (UM): This covers you in the case that you get in an accident with a driver who is uninsured. This is required in some states.
Underinsured motorist coverage (UIM): Similar to the above, this works if you are in an accident with a driver who is underinsured.
Gap insurance: This kicks in if your car is totaled or stolen before being fully paid off, and you owe more than its depreciated value.
Rental reimbursement: If you are in an accident and need to rent a car while yours is being repaired or evaluated, this will help cover rental fees.
Roadside assistance programs: Roadside assistance coverage gives you access to help when you are stuck on the side of the road, whether it’s due to a dead battery, running out of gas, or popping a tire.
Though state minimum insurance is the cheapest option when it comes to monthly rates, full coverage insurance offers a much greater breadth of protection in the event of an accident. Determining how much insurance you should ideally have and which types of coverage to go for can be intimidating, which is why we recommend asking a licensed insurance agent for tailored advice before signing up for a policy.
Whether you want full coverage, state minimum, or something in-between when it comes to your policy, always take the time to compare carriers and quotes before signing up. For an easy way to start saving on auto insurance, compare quotes with us today.