Everyone has heard the term “full coverage,” but it surprises many people when they realize not everything is fully covered. When you are leasing or financing a new vehicle the car dealerships and lienholders typically require that full coverage be added. However, what they are truly asking for is comprehensive and collision coverage which would cover your vehicle in case of an accident, vandalism, fire, or theft. This makes sense because you are still making payments on the vehicle and it is still the property of the lienholder until it is paid off. It is important to know that comprehensive and collision coverage does not automatically come with other coverages like roadside assistance or rental car reimbursement. It is simply covering the vehicle physically. If you are looking for additional coverages, they must be added separately.
People will ask, “Then what am I covered for?” Again, comprehensive and collision covers your vehicle physically. The collision part is self-explanatory—it covers your vehicle if it is damaged due to an accident. Comprehensive coverage will cover your vehicle if it is damaged due to something other than collisions. This may include vandalism, the vehicle catching on fire, or being stolen. At the time of adding these coverages to your vehicle, you will be asked what deductible you would like. A deductible is an amount that you will have to pay before your vehicle gets fixed. The options usually range between $100-$1,000. Picking the right deductible is crucial because this amount will have to come out of pocket before they begin to work on your vehicle.
As mentioned above, other coverages may be added to an auto insurance policy. A big misconception is that comprehensive and collision coverage automatically gets you a rental car if your vehicle is being fixed. Rental Car Reimbursement is coverage that allows you to rent a car if your vehicle is being repaired due to a covered claim. Typically, they will reimburse you for a certain amount per day for up to 30 days, (this varies between companies). Roadside assistance is one of those coverages that you don’t know you need until you need it. While it is often declined, it is a great coverage to have in case you need a tow truck, a jump start, tire change, or if you’ve locked your keys into your vehicle.
Other coverages that are available to everyone include medical payments—which cover you and each of your passengers for up to an amount that you choose in the case of an accident, whether it was your fault or the other persons. The options for medical payments can range between $1,000-$10,000. Aside from medical payments you also have the option of adding Uninsured/Underinsured Motorist Coverage, (UM/UIM) this covers your medical payments if you are hit by an uninsured or underinsured motorist. This coverage will come second to any medical insurance you may have. Overall, insurance needs are different for every policy. Depending on your situation it is good to continuously analyze your current policy to ensure that you are covered properly.
Our licensed agents here at Capital Insurance Service take pride in the knowledge/ability they have to explain coverages. We make sure that you leave our office or hang up the phone confident in the insurance policy we offer you.
Call us today at 775-853-3388 for the Reno location and 775-883-4433 for the Carson City location.
