Have you heard you need to have full auto insurance? The term full coverage does not relate to a specific type of policy. Rather, it applies to the type of perils for which your policy provides protection.
Why Is This Important?
Most car owners should consider the value of full car insurance. It can help to minimize any financial risk you face when on the road.
What Is Full Coverage?
Full coverage means you have complete protection for your car, up to what is possible. The amount and details of your policy may differ from one company to the next. However, most policies cover the following:
- Liability Insurance: This type of coverage protects the driver from claims made by other people. It may cover the damage to another person’s car or meet their medical bills if you are responsible for a wreck. Liability insurance does not protect your car or pay for your losses.
- Comprehensive Insurance: This coverage minimizes your risks associated with perils you cannot predict or avoid. This includes things like fire, theft, vandalism, and falling objects. Storm damage may have coverage here. Comprehensive coverage is not a requirement. However, it can be beneficial to those with a valuable vehicle.
- Collision Insurance: If you collide with any object, collision insurance may help. It offers some protection to pay for the damage to your car. It may also help cover some medical bills related to the incident. Keep in mind, if someone else causes the wreck, you might be able to use their liability coverage in its place.
- Medical Payments Insurance: This tends to be an optional type of insurance. It helps to pay out if you are in an accident with medical losses. It can help cover medical costs for your passengers as well.
- Underinsured and Uninsured Insurance: Sometimes, another driver causes damage to your car. However, this driver lacks enough (or any) liability coverage to pay for the damage. In this situation, this type of insurance can help minimize your out-of-pocket losses.
Full coverage is an important consideration. If the value of your car is high, having more auto insurance is necessary. It can give you the peace of mind you need when on the road. However, if you have a low-value car, you may not need complete protection like this.
Determine which policy is right for your unique needs and your budget. Your PCB Insurance Services agent can help you choose the most appropriate policy and coverage limits.