Full coverage auto insurance refers to a combination of insurance coverages that financially protect a driver from damage to their vehicle, the occupants of their vehicle, and other vehicles and passengers in an accident. No insurance policy can cover you and your vehicle in every possible circumstance, but full coverage protects you in most of them.
what is full coverage?
So what does full coverage auto insurance cover? In most cases, it includes liability, comprehensive and collision coverage. collision and comprehensive will protect you and your vehicle if you have an accident. if you are at fault for an accident. liability will pay for damages you may cause to others.
nationwide says it’s important to realize that comprehensive coverage helps provide the best protection possible, but you still have to pay your deductible if you cause an accident. Most states have minimum requirements for liability coverage, but you can generally choose the amount of collision and comprehensive coverage. You can also determine the deductible amount you’re comfortable paying.
Because comprehensive coverage isn’t a type of policy, it doesn’t technically cover anything. the package it builds combines the different types of insurance. these include: 1. civil liability insurance. This coverage pays for damages that are the result of an accident for which you are held responsible. it is required by law in all states except new hampshire.2. collision insurance. This covers damage that is the result of many types of incidents that occur when your car is in motion. covers your vehicle if it hits a railing, fence, or utility pole, for example.3. all risk insurance. This covers damage to your vehicle that is not due to an accident. it will most likely occur when your car is not moving. for example, a tree falls on your vehicle during a wind storm or when a thief breaks a window.
what are the coverages available?
The purpose of auto insurance is to protect you financially if you are involved in an accident. Depending on the balance, there are numerous coverage options, limits and deductibles. some of the options include:
1. the highest liability limits available. these limits can be up to $250,000 or more per person for bodily injury, up to $500,000 per accident, and up to $100,000 or more for property damage.2. the lowest deductible available for collision and comprehensive coverage. some companies offer a $0 deductible, but in most cases, it will be $100, $250, or up to $500 per occurrence.3. uninsured motorist coverage and underinsured motorist coverage with limits that match the liability coverage of your bodily injury policy.4. Some states offer uninsured motorist coverage for property damage.5. all available coverage for medical expenses in the highest amounts possible. this is called personal injury protection in no-fault states, and it’s called medical payments coverage in most other states.6. rent reimbursement7. coverage for towing and labor involved.8. additional coverage for preferred customers.
what does full coverage pay for?
When you have full coverage on your vehicle, it generally covers:
1. the damage you cause to others, up to the limits of your policy.
2. damage to your car, up to its fair market value, less the deductible determined in your policy if you are at fault or if the other driver involved in the accident is uninsured.
3. damage due to natural disaster or theft.
4. if you are at fault, payment for medical treatment for you and your passengers.
5. injuries to you and your passengers if you are hit by an uninsured driver.
what does full coverage insurance not cover?
In most cases, full coverage insurance will not cover:1. damage due to street racing2. damage due to off-road driving3. use of the vehicle in a car sharing program4. catastrophes such as war. destruction of the car or confiscation by government or civil authorities6. commercial use of the vehicle for delivery purposes7. intentional damage
what are the state minimum requirements for full coverage?
Each state can set its own minimum requirements for auto insurance. most states only require you to have bodily injury and liability coverage. no additional coverages are required for your vehicle.
Comprehensive insurance helps pay for physical damage to the vehicle or replace it when the damage is not the result of a collision. it could be damage from theft, wind, hail, or falling objects like a branch or tree. damage that occurs if you hit an animal is also covered by comprehensive insurance.
Collision coverage is also part of comprehensive coverage. this covers your vehicle when it is damaged in a collision with an object or another vehicle. will also cover your vehicle if it is involved in a single rollover accident.
Collision and comprehensive coverage usually come in a package, so you don’t get one without the other. this means your vehicle is covered for collision and non-collision damage.
rent reimbursement coverage
rental reimbursement coverage is sometimes part of full coverage. This covers a rental car while yours is in the shop for repairs after an accident or covered loss. insurance will generally cover up to a set dollar amount each day for a predetermined number of days.
what is a deductible?
A deductible is the dollar amount that you, the insured, must pay before the insurance will pay your claim.
what is a limit?
The coverage limit is the maximum dollar amount an auto insurance company will pay for a covered claim. once the limit is reached, the insured is responsible for paying the rest.
It is important to remember that comprehensive coverage is not a type of policy, but rather a combination of insurance coverages. The three main types of coverage are liability, comprehensive, and collision, but there are others you can purchase to help protect your finances if you’re at fault in an accident.