What is Full Coverage Car Insurance?

You can’t go to your insurance company and ask for full coverage auto insurance because it doesn’t exist. It is often used as a generalization, by some people, to describe a combination of liability insurance with collision and comprehensive coverage. It is best not to use the term “full coverage” as these additional policies are extensions of your policy rather than a one-stop insurance option. There are many options when it comes to insurance for your vehicle so you should start with the minimum protection you need and add additional coverage from there. Most mandatory liability insurance plans will not cover things like towing, rental replacements, or medical payments. If you want to pay for those options then you should pick and choose the ones you want. As you add more coverage to your basic insurance you will notice that your premiums will increase quite quickly.

Look at your needs and decide how much you are willing to pay for insurance. Increase your coverage amounts if you want extended protection for you and your car. People tend to want extra coverage when they purchase a new car and for good reason – a new vehicle is a major financial commitment. If you opt out of certain coverage types, and you get in an accident, then it could take years to pay off the loans on a car that you can’t even drive. Look at your budget, your vehicle, and the coverage options that you would feel comfortable with and then speak with an insurance agent if you have more questions. You should be able to come up with a policy that works for you.

If you are leasing a new car then you may be required to carry more liability insurance. The leasing company requires this additional coverage because they want to make sure your insurance will pay for the vehicle, should you cause any major damage to it.

To learn more about collision and comprehensive please read on.

Comprehensive

Comprehensive coverage protects against theft, and damage to your car. In most cases it will include flying objects that damage your windshield, damage from animals, weather, earthquakes, theft, and vandalism. With most policies, comprehensive coverage will not include the theft of items in your car, a mechanical failure on your car, wear and tear, tire damage, and explosions within the engine. Deductibles typically start at $200-$500 for many comprehensive policies.

Collision

Collision coverage protects you against damages that you cause to your own vehicle. If you have collision insurance and you damage your own car then it will be repaired for you. This will often include towing and storage. Under this policy, if your vehicle is written-off then you will receive a payout for the value of the car – no matter who was considered at fault in the accident. For many collision claims, deductibles will start at $300 and go up from there.

Excess Special Equipment

Excess special equipment coverage protects against the theft of non-manufacturer’s equipment that you have permanently installed in your car. For example, you may have expensive sound or entertainment equipment installed in the car. If you have spent a lot of money customizing your vehicle then you should look into the options available for insuring these items.