does “full coverage” car insurance cover it all?
Does “Full Coverage” Car Insurance Cover It All?
Many people ask, “What is full coverage?” The truth is, “Full coverage” isn’t a specific coverage in itself. It’s a phrase generally used to designate a number of coverages that provide a good amount of protection.
Specifically, it includes:
- Liability Coverage: Helps pay for damage you cause in an at-fault accident.
- Comprehensive Coverage: Helps repair or replace your vehicle from non-collision events (like theft or fire).
- Collision Coverage: Helps repair damage to your car after a crash, regardless of fault.
It’s a robust package of protection, but it might not provide all the protection you need. This is why the term “full coverage” can be misleading.
What “Full Coverage” Doesn’t Include
Car insurance companies offer many coverage types that fall outside the domain of “full coverage.” Here are several worth considering:
- Medical Payments Coverage: Helps pay post-accident medical expenses for you and your passengers regardless of fault.
- Uninsured/Underinsured Motorist Coverage (UM/UIM): Helps pay bills that the other driver’s policy should have covered but couldn’t due to their low limits.
- Emergency Road Service Coverage: (Roadside assistance or towing) Handy if you’re not a whiz with a jack and a wrench or need to get a wrecked car to the shop.
- Customized Parts and Equipment Coverage: Covers custom sound systems or chrome rims that standard “full coverage” won’t replace.
- Rental Car Coverage: Reimburses your rental car expenses after a covered accident.
- Gap Coverage: (Auto loan/lease coverage) Helps pay off your auto loan if your car is totaled while you still owe more than its current value.
