Understanding the term “Full Coverage” Car Insurance.

Did you know “full coverage” car insurance doesn’t actually exist? Although it might sound very shocking, it’s a term often used to refer to the combination of collision and comprehensive. Many think they carry “full coverage” on their car insurance policy; however, in reality there is no such thing as full coverage auto insurance. A full coverage policy is typically a policy that includes several types of car insurance coverage that, as a whole, provide a solid level of protection in case of an accident. Many places such as car dealerships will ask you to get full coverage on the vehicle you are buying but usually the people working at dealerships have little to no knowledge of car insurance terms.

What Does “Full Coverage” Mean?

While there is no car insurance coverage that goes by the name “full coverage,” most individuals think of full coverage as a policy that combines the following:

  • State-required liability or no-fault insurance coverage to cover bodily injury and property damages to others in an accident you cause.
  • Collision coverage to pay for damages to your vehicle in the event of an accident.
  • Comprehensive coverage, which is designed to cover vandalism, theft, and other damages that are not the result of an accident.

Make sure to always ask for a printout of the actual coverages that you have on your current policy. Also make sure to always ask questions and clarify thoughts you have with your car insurance agent.

The Right Coverage for You

Keep in mind there are many factors to consider when determining which auto insurance coverage to purchase and which to opt out of. These include:

  • The fair market value of your vehicle.
  • The quality and limits of your health insurance.
    • Medical payments coverage can be used to supplement your health insurance after an accident.
  • Your location.
    • High theft or vandalism rates can merit additional protection.
    • If your city has a high number of uninsured drivers, you may wish to purchases uninsured/underinsured motorist insurance.
  • Your current budget.
    • The best protection is frequently the most insurance you can afford to carry.

Additional Coverages to Consider

Having a full coverage auto insurance policy doesn’t mean you have full protection no matter what. Depending on your circumstances, it may even mean you don’t even have good enough protection. Instead of relying on a “full coverage” policy, ask yourself what coverage and limits best meet your needs.

  • Uninsured motorist protection – This helps you cover your costs if you get hit by a driver with no insurance.
  • Underinsured motorist protection – This will help pay your costs if the other driver has insufficient insurance coverage and/or coverage limits.
  • Medical payments coverage – You can use this coverage to pay for your medical costs after a car accident, even if you were at fault.
  • Rental reimbursement – If you’re in an accident and your car is in repair, this coverage can cover your rental costs while you wait.
  • Emergency road service – You can use this coverage if your car breaks down on the road and you need towing or labor.
  • Customized parts and equipment – If you’ve enhanced your vehicle with expensive equipment, this coverage will help you with the cost of damages to your custom parts.
  • Gap insurance – If your car is totaled in an accident, this coverage helps pay the balance between the amount you owe on your loan or lease and the car’s estimated actual cash value.

Here at Capital Insurance Service we are able to get you a free quote or review your current insurance coverages! Click, call or stop by at one of our convenient locations! Reno 775-853-3388 & Carson City 775-883-4433 .

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