What is full coverage auto insurance?
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Asked May 14, 2012
Even though you commonly hear people refer to "full coverage" auto insurance, the reality is that the term refers to a combination of policies, not to any single type of auto insurance. And what is included in full coverage also varies by the issuing company as well as the state you live in. Take a look at the basics of car insurance to get a better idea of the different types of car insurance available, any of which may be available as part of a full coverage package.
Most typically, full coverage will include state minimum coverages for liability, collision coverage, and the assortment of coverages available through comprehensive insurance. Liability means the people and property you are responsible for will be taken care of, collision pays for the damages to your own car, and comprehensive includes things such as theft, vandalism, broken glass, and burglary.
Even so, full coverage does not equate to complete coverage. You even have the option of adding riders to a full coverage policy, such as free towing, roadside assistance, or others. This is one reason why on line insurance quotes are so important, because they provide you with a broad range of options to include in your policy, effectively making "full coverage" different for each person.
Finally, the minimum liability requirements, even in full coverage, often fall short of your actual needs. Imagine how quickly $25,000 in coverage can be swallowed up by a single serious injury, and then consider what would happen if you were suddenly responsible for 5 such injuries, plus the property damage to go along with them. Make sure that the full coverage policy you purchase offers sufficient liability insurance to cover any foreseeable amount of damage or injury.
Answered May 14, 2012 by Anonymous