First of all, what does the full coverage car insurance consist of knowing what. You need to know what is full coverage car insurance. The term full coverage auto insurance or car insurance can be a bit misleading to people shopping around for the best quote for their car insurance.
So what does it really mean?
Full Coverage isn’t actually a specific coverage offered by your favorite insurer. Full coverage can be interpreted in various ways.
What most insurance agencies refer to as full coverage is a car insurance package that includes state minimum requirements, comprehensive insurance, physical damage coverage of collision, coverage usually for bodily injury and property damage liability. The cover may or may not include uninsured motorists and personal injury protection.
There is no limit for the full coverage insurance plans that can be included in the packages offered by the car insurance companies. Sometimes the customer thinks that they have the fully insured vehicle with full insurance coverage plans but this is the lack of appropriate knowledge about the insurance policies.
Most important features are not included in the insurance packages and but, in several cases the insurance packages have unnecessary insurance coverage options that are attached by the agents or brokers to raise the cost of the insurance plan.
In so many insurance cases, people who are ignorant of the insurance policies are paying high prices for even the lowest car insurance.
What Does Full Coverage Car Insurance Consist of
Most of the full coverage car insurance will cover the following features like :
- State Minimum Requirements - In the U.S. every state has its own “state minimum” requirements for car insurance. These minimum requirements typically include bodily injury and property damage.
- Liability - This if you have an accident that causes damage or injury to any other person, vehicle, animal, or property you are covered. However it doesn’t cover the cost of your vehicle repairs. Liability for the body injury, which includes the medical lists for the people, injured in the accident because of the fault of the owner of the vehicle according to the severity of the damage.
- Comprehensive Coverage - Comprehensive car insurance protects you from physical damages cause to your car by any non-accident situation. Comprehensive car insurance cover will also pay for any damage that is as a result of most natural disasters, such as fire, flood, hail, or wind damage. Full coverage is impossible without including comprehensive coverage. Comprehensive damage recovery is included in the full coverage car insurance for the damage to the vehicle caused by anything else and is not the fault of the owner of the vehicle like tree hitting, weather conditions for animals damaging the car. In this case the owner has to pay a small amount most probably $500 from his pocket, which is decided at the time of the agreement of the insurance plan within the both parties and the rest amount no matter how much will be paid by the insurance company.
- Collision Coverage - Collision coverage offers you the broadest coverage which covers your vehicle regardless of the cause of damage. This cover cannot be purchased without comprehensive cover and is always included in full cover. Collision damages to the car with the owner’s fault like hitting pole, car or any other thing. This is comprehensive recovery plan for which the owner has to pay some fixed amount decided with the consent of both parties at the time of the agreement or according to the insurance policies and the rest of the amount will be taken care and paid by insurance company.
- Uninsured and Underinsured Motorist - Uninsured or underinsured motorist coverage will cover the cost of injuries to yourself, or your passengers in the event the driver responsible for an accident either has no insurance or insufficient insurance. Uninsured and underinsured policies within the full coverage plans will pay the medical bills and any other recovery costs in case someone damages the insured vehicle or steals the belongings from the people present in the car or from owner of the car. If someone hits you and have no insurance policy or adequate insurance plan to recover your loss then this option will help in restoring the harm caused by anyone. These car insurance coverage is easy to overlook. Make sure you ask.
- Gap Insurance - From the moment you drive your new vehicle off the dealer property, your car insurance is probably not adequate cover you financially about a total loss. This is because your regular car insurance package is designed to pay the lender the vehicle’s current cash value not the current loan balance.You will need to request this kind of coverage upfront.
- Towing - Definitely ask if you want roadside assistance included in your package. It can be a pain to find yourself stranded on the road without any cover.
- Car Rental - The rental insurance for reimbursement that covers the car accidents within the shop that is for the cars present for rental purposes. This will only cover the car accidents within the shop not for the damage caused outside the shops. Sometimes your insurer may not offer car rental reimbursement or maybe offer a limited cover. If car rental is an important part of the cover for you, make sure to request it before you sign your agreements.
- OEM Endorsement - OEM stands for an original manufacturer’s equipment. In some states' car insurance companies are not obligated to pay for OEM parts when paying for damages to your wrecked vehicle. Make sure you find out exactly what your policy covers and request an additional coverage to get OEM parts if it is not included in the package already.
- Full Glass Coverage - Full glass damage coverage pays the amount of a covered glass loss with no deductible. Although glass damage is automatically covered when you choose full coverage car insurance if you opt for a high deductible on comprehensive it could wipe out your glass coverage. Package can be purchased for an additional premium.
- Vanishing Deductible - Vanishing Deductible is just what it sounds like, but it might be better described by calling it “the incrementally decreasing deductible.” Essentially, it’s an agreement that you come to with your car insurance provider that says with each passing year, your deductible will continue to shrink until it hits zero. Of course, not everyone’s going to offer this with every new car insurance policy, but if you can get it when comparing car insurance quotes, its well worth the effort.
- Property Damage Liability - That provides coverage for cars or other property damaged by the owner of the insured vehicle having the vehicle insured under full coverage insurance.
- Personal Injury Coverage - Personal injury coverage includes protection for the owner of the car in form of medical aid expense, loss of income by theft or any other loss to owner or anyone else present in the insured vehicle.
- For the Emergency Assistance - For the emergency assistance on the roadside the towing and labor insurance policy will take care of happenings such as keys locked inside the car, engine problems, starting problems or shortage of gas or the likes.
- The Death Indemnity Pays - The death indemnity pays the final amount about owner’s death in an car accident caused by or within the insured car. In this case, the full coverage car insurance pays the amount to the owner for the death during driving or if owner was not driving the car at that time in both cases it was applicable.
- Extras - Each insurance company will offer you individual benefits for signing up for any full coverage insurance policy. They’re going to vary depending on your driving record, age, location and insurer but may include but are not limited for you to: Legal representation , Additional coverage options , Accident forgiveness
When shopping for insurance in the United States, you need to consider two primary things. First, you want to make sure the policy covers the protection you need and second, you need the policy to be affordable. Unfortunately, some people think that if you save money on insurance, the coverage is below average level, but you can get an excellent policy simply by working with the most affordable car insurance companies in the country.
However, the full coverage car insurance does not protect from the full damage caused to the vehicle; it just recovers and pays for the limit of your insurance policy. All the owners of the cars who have spent lavishly on the vehicle will prefer the full coverage car insurance plan. People who opt for the leasing have no choice; the insurance is mandatory and compulsory part of any leasing plan because, the car leasing and car loan companies needs to protect their liability and they want it to be fully covered by the insurance policy providing companies.