Some car owners have the habit of signing up for insurance just because it is required by law. One has to realize that a good full coverage auto insurance package can do a lot more than fill the basic requirement of having your car insured, as required by the law.
You may or may not know that at least some coverage of auto insurance is mandatory in any of the 50 states in the U.S. All the states in the U.S. require that a person at least carry liability insurance that will pay for damage to third parties in the event of an accident. (Click to read more about state auto insurance requirements)
Although only the minmum required insurance is needed, one should ideally consider buying full coverage auto insurance as it can insure the person against heavy costs and expenses that might be incurred in the event of an unfortunate accident. Before we get into the details about full cover auto insurance, one has to understand that the term can be a bit misleading. Continue reading below to learn more about what full coverage insurance is, what type of coverage is included, why it’s important, and how to get it.
What Is Full Coverage Car Insurance?
The meaning of the term “Full coverage auto insurance” varies from company to company. This is because insurance companies usually sell added features in an insurance policy before calling it a full cover insurance policy. If you get some such offer, you should look at the various covers that might vary from company to company. One company for example might offer a full cover auto insurance policy where your car will be covered for damage from fire while another company might offer a full cover insurance policy that will not cover damage from fire. Thus, it always makes sense to go through each individual policy in great detail to find out if it is the best possible insurance policy for you. Don’t just take the insurance policy company’s word when they say it is full cover insurance.
Full coverage auto insurance is a policy that’ll protect your assets whenever you injure someone or damage their property. It’s much more crucial that you protect yourself in case you hurt someone else than it’s to just consider harm to your own own vehicle. Many people have this notion backwards and just possess the minimal required liability insurance to save cash on the coverage. You’ll wind up paying more to a whole lot within the long term if you just carry this quantity of coverage.
What Coverage Is Usually Included In These Policies?
First party coverage – This will cover the damages to your own car in the event of an accident. Apart from covering the repairs on your car, it will also usually pay for a towing company to pick up your car within 24 hours of the accident. Some insurance policies might also pay the expenses for a rental car until your car comes back from the repair shop. In addition to this type of coverage, first party coverage will also cover damage from fire or severe forms of weather. Theft will also be usually covered by first party coverage.
Third party coverage – This coverage will pay for expenses related to bodily harm of a third person that might be involved in an accident. In addition to bodily harm, it will also pay for expenses related to damage of the third party’s car that might need repairs.
Why Full Coverage Is Important
If you are ever the unfortunate victim of an accident, you might have to pay for various damages such as medical expenses, property damage, repairs for your own car and damages to the other person you might have injured. All 50 states in America require that you at least carry liability insurance that will pay for damage to another person or his or her car.
However, liability insurance will not cover other expenses that you will have to pay for your medical expenses and car repairs. You will find that everything will go quickly out of hand when you are lying in bed without being able to pay for your own medical expenses. In situations such as that, comprehensive auto insurance coverage can provide you with great relief as it will pay most of the unforeseen expenses and allow you to get back on your feet.
Is Full Coverage Required By Law?
In many states, complete coverage car insurance is advised, but not needed, unless there’s an outstanding mortgage or lease to the automobile. By having a lower than the worth of the car, you can avoid having to pay full retail cost for virtually any crash repairs your vehicle may demand.
Because, in case your automobile is damaged beyond its real surrender value, you’ll receive a payment from the insurer for the surrender value you’re also protected. This could supply you with funds which may be used toward purchasing a brand new vehicle. In short, complete coverage auto insurance is able to assist you to stay solvent, keeping you from needing to fund a brand new car or pay cash for crash repairs.
Full coverage insurance is needed in this scenario since the finance company doesn’t want harm to go unrepaired, nor do they need to confront the prospect of repossessing a vehicle with a large number of dollars worth of harm, since the lower selling financial value of the automobile at auction will most definitely become a writeoff for the finance company.
How To Get This Type Of Car Insurance Coverage
To get the cheapest car insurance packages, you will have to do some legwork. This will usually entail spending just a few hours of research. You can either do this over the phone or the Internet. The Internet is a much more efficient way to do it as it will save you a lot of time and effort. There are many sites online where you can enter your information in just a matter of minutes and then be presented with insurance quotes from several different companies instantaneously.
It is recommended that you shop around quite a bit as there are many companies that will offer competitive complete coverage auto insurance quotes. The more you shop around, the better your chances are when it comes to finding the best quotes available in the market today.
You will usually be asked to provide information such as age, gender, a brief history of your driving records and some other details. You will also be asked to provide information about the car you are trying to insure. You will then have to choose the amount of coverage you are seeking and also enter details such as the amount of deductible you are willing to pay.
Once all these pieces of information are entered, an insurance quotes site will quickly provide you with multiple quotes from various companies. Usually, you should not take these at face value and it is always a good idea to read through their fine print to make sure that there are no hidden charges lurking in the contract.