Have you ever thought it would be financially smart to add some extra layers of protection over the financial risks of being a car owner? Have you ever considered obtaining full coverage for your car as a way to maximize your financial protection? If you think there is any such thing as true “full coverage” in terms of protection from the damages and losses you can sustain in a car accident, then you are wrong.
Although there are a number of different insurance packages available, known as full coverage packages, there is a great misconception among laymen about the term “full coverage.” The biggest misconception is that there exists a specific form of auto insurance known as ‘full coverage’ which guarantees to cover the full extent of damage caused to a car no matter how much it is. However, this is not the case as full coverage does not refer to any single insurance policy. Instead, it can be defined as an accumulation of different insurance policies which will be able to provide coverage for various different kinds of losses and provide coverage for different forms of liability, including injury and destruction of property. Comprehensive and collusion coverage provide coverage for repairs or the cost of replacing the vehicle entirely. However, the term “full coverage” can still be misleading since even full coverage can leave some forms of loss and liability uncovered.
Since full coverage packages cover a variety of different potential sources of liability and risk, these packages are also more expensive. Yet even with these additional costs being paid, they might not cover the full cost of vehicle damage or injury in a car accident. If the injury damage is to you, and your full auto insurance does not cover the cost of the injury you sustained in the collision, then the cost of the care and treatment of that injury will come out of your health insurance. In case if you do not have health insurance, or your health insurance doesn’t cover that injury, then you will have to pay the cost out of your own pocket.
Full coverage: The basics
• State minimum requirements - Each state in the United States is free to set its own minimum insurance requirements for car insurance. These usually include coverage for bodily injury liability and property damage.
• Comprehensive - This is coverage for property damage a policyholder’s car can take that is not a result of a car accident. Hence, full coverage can never be complete without comprehensive coverage. Comprehensive coverage includes protection from damages such as fire, theft, vandalism, storm damage, hitting a deer and windshield breakage.
• Collision - Collision coverage ensures your vehicle will be covered regardless of what causes the damage and hence it is the coverage that gives you the most extensive coverage. Collision coverage is a way to protect the car against all accidents. In addition to this, collision coverage can’t be obtained without comprehensive coverage; therefore, by the time a policyholder obtains collision coverage, he or she will have extensive coverage against physical damages to their car.
• Medical coverage or Personal injury protection - Though it isn’t always the case, many full coverage programs come with a minimum dollar amount for medical coverage. The level of personal injury protections bare minimum requirement is decided by the state, if the state requires it.
There are other extra’s that can be a part of coverage, but cannot be guaranteed in a full auto coverage package. These include uninsured or underinsured motorist coverage, gap insurance, towing coverage, car rental coverage, Original Equipment Manufacturer endorsement, full glass coverage and vanishing deductible.
Policyholders should therefore be careful about how they understand and use the term “full auto coverage” as they can be completely different auto insurance packages. Potential policyholder’s will have to do a lot of research about the different packages available to them when picking the best full coverage package for themselves.
What does full coverage lack?
Once again, full coverage is not an insurance policy itself and therefore, all “full coverage” packages are not the same. Different packages entail different levels of coverage for different forms of loss and liability, which makes it important for individuals looking for full coverage insurance package to see what each one includes and entails. For example, ‘Medical’ may not be included in the coverage and be an additional cost. Another insurance package could provide medical coverage but no rental reimbursement coverage. Gap coverage is a form of insurance frequently excluded from full coverage packages even though it can be important after a collision that totaled the vehicle which is still on lease or is being paid on. This form of coverage assists in paying off the automobile in these instances.
It’s not really full coverage
The above information makes it pretty clear that full coverage does not always mean that your automobile is fully covered from the entirety of losses you may be faced with following a car accident. The packages offer a fair amount of protection that smaller insurance packages do not, but the protection they offer is still usually far from a hundred percent. In addition to this, once the full coverage policy has been exceeded. the difference has to come out of the policyholder’s pocket.
The need for additional coverage
To ensure that your car and your finances are as safe as possible, additional coverage may be required in addition to your current insurance plan. This additional coverage can come from the same or different carrier. Although this may seem like a time and money consuming nuisance to some car owners, it may be necessary in certain specific circumstances. When deciding on a full coverage auto insurance plan, potential policyholder’s should compare as many different coverage packages as they can and get the one that gives them the most coverage from risks they might encounter which they are not able to afford financially.
The lack of insurance to cover liability and loss that may be encountered frequently can often result in a lawsuit filed against the driver and in some cases, the car company. It is advised to get in touch with an auto accident attorney to ensure the maximum compensation after an injury.