Do you want full coverage car insurance? The term gets tossed around frequently when speaking about car insurance. However, do you know what it actually means? It may not be as cut and dry as you think.
Full coverage can be interpreted in different ways. It is not a specific coverage offered by insurance carriers. Your agent does not hit a full coverage check box on your policy and you are ready to go.
It is a term which has evolved and is well known in the insurance industry but insurance carriers do not use a laid out set of guidelines which they all follow.
The Core of Full Coverage
- State Minimum Requirements
Every state in the U.S. has the ability to set its own state minimum requirements for auto insurance. The state minimum requirements typically include bodily injury liability and property damage.
- Comprehensive
Physical damage for all the things that can happen to your vehicle other than a collision will be covered by comprehensive coverage. Full coverage cannot be possible without comprehensive coverage. Fire, theft, vandalism, storm damage, hitting a deer, windshield coverage, and more are covered by comprehensive.
- Collision
Collision coverage is the coverage that gives you the broadest protection and is always included in full coverage auto insurance. Collision coverage ensures your vehicle will be covered regardless of what causes the damage. Collision covers damage for all accidents and since collision cannot be purchased without comprehensive coverage anything other than an accident will still be covered.
- Medical Coverage / Personal Injury Protection Don't forget your medical coverage! Many policies do come with a minimal dollar amount for medical. Personal Injury Protection is provided at the level set by the states which require it. Optional increased limits are usually available so be sure to check this coverage over with your insurance agent.
Extra car insurance coverage is where the line starts to get blurred when it comes to full coverage. If you state the words full coverage, maybe you assume it means every insurance coverage available. Maybe you think roadside assistance is automatically included with the term full coverage. One lesson you do not want to learn the hard way is to think you are covered for something when you are actually not.
- Uninsured Motorist / Underinsured Motorist
These coverages can easily be overlooked if you are not familiar with the coverage. It is important to understand the coverage and determine if it is something you want. Insurance agents can easily drop this coverage off of your quote to low ball your rate and beat other quotes. If you opt out of this coverage, make sure you do it knowingly and are not surprised down the line.
- Gap Insurance
Buy a new vehicle, request full coverage, and expect gap insurance, not necessarily. Gap insurance is a coverage you need to request up front. A good agent will offer it to you but you can't always rely on it. Do not assume gap insurance is automatically included with full coverage auto insurance.
- Towing
Towing is probably the most commonly packaged coverage included with full coverage auto insurance. It can be really disappointing when you are stranded and call your agent only to find out you do not have coverage. Definitely, specify if you want roadside assistance.
- Car RentalSome insurance carriers do offer a limited amount of car rental reimbursement when you purchase full coverage auto insurance. Sometimes the coverage is not listed so you have to ask what your policy offers. If car rental is an important coverage to you, make sure to request it at the time you set up your policy.
- OEM Endorsement
If you have never had an auto insurance claim, you may not be aware insurance companies do not use parts straight from the car manufacturer. Aftermarket parts and used parts are used to repair vehicles. Upon request, some insurance carriers offer an additional coverage to get OEM parts, do not plan on it being included with full coverage.
- Full Glass Coverage
Glass damage is automatically covered when you choose full coverage insurance because it would fall under comprehensive coverage. However, if you opt for a high deductible on comprehensive it could wipe out your glass coverage. Full glass coverage you pay a higher premium to get no deductible or at least a lower deductible for glass claims only. Check into full glass coverage if you go with a deductible on comprehensive coverage.
- Vanishing Deductible
If the insurance carrier you select offers vanishing deductibles, be aware the coverage usually does not automatically come with a full coverage policy. It is typically offered for an additional cost which would need to be added to your policy before a loss occurs.
Be careful when it comes to using the phrase full coverage auto insurance. Since it can be taken to mean different things, you really need to be specific when selecting coverage. If car insurance terminology is Greek to you, start by learning the basics and ask questions until you feel comfortable with the subject.
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