Full Auto Insurance Coverage Explained Fully
No one can predict the future. We can only prepare for the worst. When it comes to car coverage you need to be prepared for anything. The average car insurance will serve to show the authorities that you have an insurance policy but will it really be effective when an unfortunate event occurs? That’s why you don’t need just any old policy-you should consider full auto insurance. Which situations will this type of policy cover?
Even though the name ‘full auto insurance’ suggests an all-encompassing policy, in reality such a policy doesn’t exist. In fact most auto insurance companies will allow you to decide what kind of policy will benefit you the most, package it together and call it full car coverage which is really a customized car insurance that has broader coverage than the average policy.
That being said, typically the set of liability, collision and comprehensive coverage has become known as ‘full auto insurance’. So in order to understand what this type of policy covers we need to delve into the scope of liability, collision and comprehensive coverage.
Liability coverage is common because it is mandated in most states. It comes into play when you get into an accident and it’s your fault. There can be either Bodily Injury liability or Property Damage liability. If the accident is your fault and you have both kinds of liability coverage, you are covered for damages to the:
– Other party’s vehicle and other damages materials
– Other party’s personal medical and recovery treatments
– Passengers in the other vehicle
– Other bystanders
You must be sure to buy enough coverage because if your policy doesn’t cover all the damages you can be sued for the remainder.
Comprehensive (along with Collision) is usually neglected when most people buy car insurance. With increasing natural disasters like the recent cyclones and tornados that hit the south and the east coast or the potential earthquake always looming over California, the effects of natural disasters can no longer be ignored. You have to be prepared for everything. That’s why comprehensive coverage is no longer a luxury but a real necessity. It covers:
– Acts of God (natural calamities)
Even if you think comprehensive coverage is expensive, you can compare auto insurance rates and find one that may have a higher deductible at an affordable price. In a calamity, it’s always better to pay a high deductible than to have to foot the entire bill.
Collision offers you protection in an area that Comprehensive and Liability don’t cover. In the event of an accident of any kind, whether you’re driving home from work and ram into a lamppost because of icy roads or collide with a swerving drunk on the freeway, collision insurance will cover all damages to your car. When the collision is your fault liability coverage will help you pay for the other party’s damages while collision coverage can be used on your vehicle. Collision coverage makes sure that when your car is damaged, you don’t have to pay for repairs out of your own pocket. You may think it unnecessary now but why take any chances when cheap auto insurance quotes are available online. Collision coverage is a great safeguard against a variety of accidents.
In addition to these three, some kinds of full car coverage also include Personal Injury Protection insurance (PIP) and/or Medical Payments (some states offer and mandate PIP while others offer only medical payments) and Uninsured Motorist Insurance.
– Personal Injury Protection will protect you whether or not you were responsible for the accident. It will not only cover hospital and medical bills but it can also make up for the loss of income due to missed work, funeral expenses and survivor’s loss.
– Medical payments work in a similar way in that they also insure that hospital bills after the accident and any kind of therapy required after the incident are paid for, up to the coverage you have purchase.
– Uninsured Motorist Insurance is beneficial to possess when you are involved in an accident with a friend who is driving without insurance. If you incur any personal injury Uninsured Motorist Bodily Injury Insurance will help you pay for it.
Full car insurance offers vast coverage over all kinds of accidents and what’s great is you can decide what kind of coverage suits your specific needs as you compare auto insurance quotes online. It’s great for families, individuals and the elderly since the safety full auto coverage provides, far outweighs the extra dollars you pay for it.