What Is Full Coverage Insurance?
Full coverage insurance is created to grant car owners the best protection in unforeseen cases. Natural disasters, theft and car accidents are all perfect examples. In spite of the popularity of this term, there is no existing policy called full coverage auto insurance. Providers of insurance policies avoid offering any auto insurance policy that will cover everything surrounding vehicle insurance.
Popularly known as full coverage auto insurance by many people, comprise of the combination of liability insurance, comprehensive insurance, and collision insurance. Many people interchangeably use the term comprehensive insurance and full coverage insurance and technically it is wrong. Consumers need to be aware of the various Insurance policies so that they can make a decision of the coverage preferences.
What does full coverage insurance cover?
What people don’t understand is that a known fact is that full coverage auto insurance presently is not a policy offered. It doesn’t cover anything. But a reliable insurance package helps protect you and your passengers, and this can be gotten from the following 3:
For you to be conversant with comprehensive car insurance, you must understand the fact that the policy doesn’t cover up For damages caused by another car. The damage that occurs by collision with another car cannot be covered with comprehensive car insurance. The only available cars which comprehensive car insurance can help you are cases involving weather, theft, fire, etc.
Liability insurance is created most times to cover the cost of the other party repairs and injury. When an accident occurs and you are found at fault, liability insurance takes full care of the victim. Accidents like this will come at your financial risk. Repairs and injury of the other person’s injury must be fully catered for by your liability insurance. Consumers are expected to always pay. Liability insurance only comes in cases where an accident has occurred, and you are fully found at fault.
If you are not the cause of the accident, then you are not obliged to pay for anything. Consumers must ensure that the accident was caused by you before you are mandated to make any payment.
Just as the name implies collision insurance applied in cases where there is a direct collision with another car. This insurance policy can only provide cover cost to your vehicle if the accident was caused by you. It doesn’t cover accidental charge for the other victim’s car or his bodily injuries.
In order for your car or body to be covered for by collision insurance, ensure that the accident is caused by you. Any accident caused by the other party which may still affect you, will not be covered for by collision insurance.
Accidents caused by you to the other party
With this case, collision insurance will still not be applicable for injuries of the other party. What happens in a scenario like this? Accidents become one-sided and cover only a particular person.
Typical incidents that may differ might be covered by these 3 insurance types make them vital! Consumers will get a better starting point for the package of full coverage insurance. Bear in mind that the security that covers auto insurance depends on numerous factors. These factors include the deductible amount and policy limits.
Though in some cases, a car driver may decide to choose other coverage. Medical payment coverage, personal injury protection, and gap insurance are all examples.
Full Coverage Insurance Cost
You may wonder how much is full coverage car insurance? The truth is providers of insurance policies do not offer any full coverage. Although, it is possible for you to create a dependable auto insurance package. It’ll protect you in cases of accidents on road or workplace. In most cases, the more coverage you choose, the bigger your monthly bill. There are still numerous variables that may be detrimental to insurance cost, and they include:
- Driving Record
- Policy Chosen
- Your Policy Limit
Now, while asking how much is full coverage car insurance, the answer actually depends on your previous history. It’ll also depend on the type of insurance policy chosen. What do these two factors do? Certain customer will definitely be considered before knowing the cost. Checking the breakdown of various car insurance will give you an idea.
Why full coverage auto insurance may be required
Most of the coverage that may be required by most car owners are primarily dependable only on the state of residence. With customers who have been given an auto loan, lenders may require full coverage insurance. This is necessary because when you have a truck loan with bad credit or an auto loan, the car is the lender’s asset and not your own.
What to do if a car that is paid off later becomes stolen
This type of auto insurance policy will only cater for the loss of the lender. It’ll also cover the value of the car. When there is no auto insurance to cover the initial cost, it becomes your responsibility. You’re now in a position to make payment for the loan. Even when the car is no longer in your possession.
Sometimes you may owe more than what your vehicle what. In such cases, it is better to consider the Gap insurance. The Gap insurance goes along with the full coverage. Gap insurance policies pay the gap between the vehicles actual cash and the amount that you owe. This takes place while you are leasing or financing a car.
What Auto Insurance Doesn’t Cover
Consequently, there are numerous things that may not be covered by auto insurance. This is vital to know! Consumers need to get the specific amount for protection of their vehicle, situation and income level. No matter the coverage that you may have, it will not protect you from incurring a cost. It is better to choose the right coverage type that will go into your auto insurance policy.
The items that auto insurance never covers include:
- Tire Damage
- Custom Parts
- Intentional Damage
- Medical Payment
- Wear & Tear
- Parts Stolen From Your Vehicle
- Damage Incurred From Racing
- Damage From Vehicle Listed For Delivery
- Assistance on the roadside; labor & towing
Wondering about our full coverage auto insurance policy? Consumers can ask our local auto insurance agents and request for the full coverage package. Know the amount of coverage your vehicle needs. And, know the amount or type of liability that your state requires.
Are you in need of a vehicle and still confused on where to start? Look no further! Car Loans of America is ready to provide you with the best local lenders who are ready to work with you no matter the credit situation!