What is Full Coverage Auto Insurance and is it worth it?
Updated: Jun 15
Auto insurance is important for anyone who drives a car. It helps cover the costs if something happens to your car, like an accident or theft. But have you heard about "full coverage" auto insurance? In this blog post, we will explain what "full coverage" means and help you understand whether you need it or not.
What is full coverage auto insurance?
"Full coverage" auto insurance is like having extra protection for your car. It usually includes two main types of coverage: liability and physical damage.
Liability coverage helps pay for damages or injuries to other people if you are responsible for an accident. Let's say you accidentally hit someone else's car and it gets damaged. Your insurance company will help pay for the repairs to the other person's car. This is important because you don't want to have to pay for these costs out of your own pocket.
Physical damage coverage:
Physical damage coverage helps pay for damages to your own car. This is the part that everyone refers to as “full coverage”. There are two parts to physical damage coverage:
a. Collision coverage: If you accidentally crash into something like another car or a tree, collision coverage will help pay for the repairs to your car.
b. Comprehensive coverage: Comprehensive coverage helps pay for damages to your car that are not caused by accidents, like theft, vandalism, or damage from severe weather. For example, if a tree falls on your car during a storm, comprehensive coverage will help cover the repair costs.
How to weigh the need for full coverage:
Deciding whether you need "full coverage" auto insurance or not depends on a few factors. Here are some things to consider:
Financed/Leased or paid-off: If your car is financed or have a lease, the lienholder will require you to carry comprehensive/collision coverage. Only once you have the care paid-off, can you decide to have “full coverage” or not.
Value of your car: If your car is old and not worth a lot of money, you might not need "full coverage". It might be more affordable to only have liability coverage, which is usually required by law.
Your budget: "Full coverage" can be more expensive than just having liability coverage. You need to think about how much you can afford to pay for insurance each month.
Peace of mind: "Full coverage" gives you extra peace of mind because it protects you and your car from more things. If you worry a lot about accidents or damage, having "full coverage" might be worth it for you.
“Full coverage” auto insurance is like having extra protection for your car. It includes liability coverage, which pays for damages to other people's cars if you are responsible for an accident, and physical damage coverage, which helps pay for damages to your own car. To decide if you need “full coverage”, think about the value of your car, your budget, and how much peace of mind you want. Always remember, having auto insurance is important to keep yourself and others protected while driving on the road.
If you want to discuss whether, or not, you need “full coverage” auto insurance, please reach out to talk to one of our licensed agents.
Disclaimer: "Full coverage" is listed as “full coverage” in this article because that is how it is referred to in casual conversation. There is no such thing as 100% "full coverage", there are always exclusions listed on each auto insurance policy, no matter the company.