Full Coverage is Just a Myth
Have you ever heard someone say they have full coverage auto insurance? Don’t believe them. They probably wouldn’t intentionally lie, but in reality, full coverage is just a myth. What they might mean is they have coverage that meets the state-mandated liability insurance limits and they have coverage for physical damages, or they might mean they have plenty of that plus comprehensive and collision coverage.
So, why is this not considered full coverage? Even if you bought every policy offered for auto insurance, there is no way to fully protect your car from every possible scenario. That is why it is important to speak with your agent about what your policy covers and exactly what that means.
What is liability coverage? Liability coverage is a state-required minimum coverage that helps you pay for damages that you may be at fault for. This can be damage to property or even a person. Bodily injury liability coverage assists you with paying for covered medical bills, lost wages, and pain and suffering if you are found to be liable for a covered accident that left someone injured. On the other hand, property damage liability coverage may assist with the payment of covered property damage caused by you. Check your state’s minimum liability coverage because you may want to buy more than what is required to protect your assets.
Collision and comprehensive coverage…sound familiar? These are optional coverages for your vehicle. Check your lienholder agreement, as some require you to have physical damage coverage on your vehicle. Collision coverage may help you fix or replace your vehicle after it has been involved in a covered collision. Comprehensive coverage may help repair covered damage to your vehicle caused by things other than a collision, such as hail damage, flooding or theft.*
Your premium is affected by your coverage options and deductibles you select. Speak with your agent to determine what the best combination is for you. Contact your agent to learn what your auto policy covers and what your options are.
*Comprehensive and collision coverage require an agreed upon deductible.
**The product information contained herein is informational only and not a statement of contract. All coverage options are subject to the provisions of the policy purchased and details of the policyholder’s situation.