What Full Coverage Auto Insurance May Include
When you want the best protection for your car, you'll probably buy full coverage auto insurance. States differ in what they require for minimum insurance, but sometimes the minimum might not be enough. You should discuss your options with an insurance agent.
If you have an old car that is not worth much, then the minimum insurance may be all you need if you'll probably junk the car rather than repair it. If you have a new car, you'll want good coverage since repairs could be expensive. Here's a look at what full coverage auto insurance might include.
Liability Insurance
Your state probably requires liability insurance, and they may even require a minimum amount you have to carry. This insurance doesn't cover damage to your car. Instead, it pays someone else for damage you do to their property if you cause an accident. Liability insurance also pays for the other person's medical bills, and the insurance may also pay if you get sued over the accident.
If you don't have liability insurance, you'd be responsible for all of these costs yourself. You might lose your home or other valuables if you get sued to pay up. It's worth it to carry liability insurance at all times, no matter how new your car is and even when you rent a car or drive another person's car.
Collision Coverage
Collision coverage is what pays for damage done to your car when you're in an accident, whether you hit another car or an object that does damage or totals your car. Your insurance agent can help you decide how much collision coverage you need based on the value of your car. Your state may require you to carry a minimum amount of collision insurance, but even if it's not required, you may want to carry it so you have some protection and will get some money to pay toward a new car if your car is totaled.
Comprehensive Coverage
An auto insurance policy that includes liability, comprehensive, and collision coverage is usually considered full coverage insurance unless your state also requires other coverage. Comprehensive insurance covers damage caused by things such as theft or storm damage. Collision coverage pays for damage to your car, and liability insurance pays for coverage to the other person's car or property. These three types of car insurance keep you well covered.
Add-On Insurance
Your insurance agent can explain additional types of insurance you may want and ones that may be required by your state. This includes things like uninsured motorist coverage, medical coverage that pays hospital bills if you're in an accident, and gap insurance that can pay the difference between what your car is worth at the time of the accident and how much you still owe.
Adding more coverage increases the cost, so you'll need to discuss your budget with your insurance agent too, so you get the coverage that gives you peace of mind that you can afford. Payments can be adjusted by adjusting the amount of coverage and your deductible, so you have a lot to consider when you want full coverage auto insurance.
For more information on full coverage auto insurance, contact a company near you.
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