“Full coverage” automobile insurance is typically used to refer to a mix of coverages that assist safeguard a vehicle, such as collision and comprehensive. Full coverage for your automobile is, however, a myth.
Auto liability insurance, for example, is mandated by state law. Rental reimbursement, for example, may or may not be an option, depending on your insurance company and your specific circumstances. Ultimately, you’ll have to decide what kind of car insurance policy is best for you, ensuring that your policy complies with state regulations and helps you secure your vehicle.
Because it is mandated by law in the majority of states, liability insurance is commonly included in all types of auto insurance policies. Bodily injury liability coverage pays for someone else’s medical bills if you’re responsible for an accident that damages someone else. Damage to another person’s property is covered by property damage liability insurance.
Depending on where you live, you may be required to obtain a certain amount of liability insurance. There are three standard liability coverage limits in vehicle insurance policies:
- For bodily harm, the maximum amount that can be paid out per person.
- a single accident’s maximum compensation amount for bodily harm
- The maximum amount of money that can be paid out in the event of property damage.
You may want to get a coverage that exceeds the state’s minimum liability limits. Insurance premiums can rise if you have a greater deductible, but you’ll be better protected in the event of an accident.
Coverage For Both Comprehensive And Collision
The lienholder or financing firm normally wants collision and comprehensive coverage if the car is still being financed or leased. If you have a paid-off automobile, these two types of insurance coverage are often not required.
It pays for the repair or replacement of a vehicle damaged in a crash with another vehicle or object if collision coverage is included in your policy (such as a fence). Remember that collision coverage is there to safeguard your car, while property damage liability is there to cover the costs of damage you cause to another driver’s car.
If your car is stolen or damaged by things like hail, animal damage, or vandalism, comprehensive coverage helps cover the cost of repairs or replacement.
There are deductibles and limits for both comprehensive and collision coverage. A deductible is the amount of money you have to pay out of your own pocket before your insurance company will pay for a covered claim. For a covered claim, a limit is the maximum amount that your insurance will pay.
Coverage for the Cost of the Rental
In the event of a covered loss, rental reimbursement coverage pays for a rented car while yours is being repaired. Renter’s insurance normally covers a certain dollar amount per day for a specific number of days; make careful to check the coverage limits before renting.
COVERAGE FOR RENTAL REIMBURSEMENT
After a covered loss, rental reimbursement coverage pays for a replacement vehicle while yours is being repaired. Typically, rental reimbursement pays a certain dollar amount per day, for a certain number of days. Be sure to check the coverage limits.
COVERAGE FOR UNINSURED AND UNDERINSURED DRIVERS
Uninsured motorist coverage protects you in the event of an accident involving an uninsured driver. The medical expenditures you suffer as a result of an accident caused by another driver are normally covered by that driver’s liability insurance, provided that driver does not have vehicle liability coverage. If this is the case, the expenses associated with your injuries would be covered by your uninsured motorist policy.
For underinsured motorist coverage, the other driver who caused the accident has insurance, but their liability coverage limits are lower than those that trigger underinsured motorist coverage in your state. For additional information about this coverage, check your state’s insurance regulations or talk to your insurance agent.
Injuries to the body and medical expenses are covered under this type of insurance.
No matter who is at blame for the accident, medical payments coverage can assist cover your (and your passengers’) medical bills. Surgical procedures and X-rays, for example, may be covered.
Although not available in every state, personal injury protection (PIP) is mandated in a few. Similar to medical payments coverage, PIP helps pay for your medical bills if you suffer an injury as a result of an accident covered by the policy. While you’re recovering, it may also help you cover some of your other costs. As a result of your injuries, you may be required to pay for child care and forgone wages.
Full coverage auto insurance does not exist, but a variety of coverage options are available to help protect you, your passengers, and your vehicle.