Haris Ashley
Full coverage car insurance is a policy that includes liability coverage, comprehensive and collision insurance, and any other coverage required by state law. While there is no standard definition of full coverage, it typically includes protection for car accidents and non-accident-related damage, covering the policyholder regardless of fault. The cost of full coverage car insurance varies depending on the insurance company, location, and other factors, but it is generally more expensive than liability-only insurance.
| Characteristics | Values |
|---|---|
| Type of Policy | "Full coverage" car insurance is a general term and not an actual type of coverage. It refers to a collection of coverages that protect policyholders against various circumstances. |
| Liability Coverage | Liability coverage is mandatory in almost all states. It covers damages or injuries you cause to another vehicle or person, up to a certain limit. |
| Collision Coverage | Collision coverage pays for damage to your car that results from colliding with another object, such as a vehicle, tree, or retaining wall. |
| Comprehensive Coverage | Comprehensive coverage pays for vehicle damages resulting from incidents other than collisions, including theft, vandalism, fire, glass breakage, hitting an animal, or weather-related issues. |
| Medical Payments Coverage | Medical payments coverage pays for medical expenses for you and your passengers if you're injured in a car accident. |
| Personal Injury Protection | Personal injury protection (PIP) covers medical expenses, lost wages, and other expenses for you and your passengers related to injuries sustained in a car accident. |
| Uninsured/Underinsured Motorist Coverage | Uninsured motorist coverage provides protection when the other party in an accident does not have insurance. Underinsured motorist coverage helps cover costs when the other driver's insurance is insufficient. |
| Additional Coverages | Other coverages may be included, such as roadside assistance, rental car reimbursement, gap insurance, and more. |
What You'll Learn
Liability insurance
It's important to note that liability insurance does not cover injuries to yourself or your passengers, nor does it cover physical damage to your own vehicle, even if you are at fault. This is where the other components of full-coverage insurance come into play.
While liability insurance is a mandatory requirement in almost all states, it is essential to check your specific state's regulations to understand the minimum coverage requirements. These requirements vary from state to state, and it's crucial to ensure you comply with the legal obligations in your area.
People's Trust Insurance: Exploring Their Auto Insurance Offerings
You may want to see also
Collision insurance
It is particularly recommended for vehicles that are being leased or financed, newer or more expensive vehicles, and older vehicles that still maintain good value.
Auto Insurance Premiums: Strategies to Combat Rising Costs
You may want to see also
Comprehensive insurance
The cost of comprehensive insurance will depend on factors such as the age, make, and model of the vehicle, as well as the chosen deductible amount. Comprehensive insurance is typically part of full coverage auto insurance, which also includes liability and collision insurance. Full coverage auto insurance provides protection in most scenarios and is recommended if you can afford it, although it is not required by law.
Lo Jac: Auto Insurance Rates Adjusted?
You may want to see also
Medical payments coverage
MedPay covers a range of expenses, including:
- Ambulance fees
- Hospital visits and stays
- Nursing services
- Dental procedures
- Medical treatments, surgeries, or procedures
- Medical deductibles and co-pays
It is important to note that MedPay does not cover wage reimbursement if injuries force you to miss work or child care costs due to accident injuries. It also does not cover treatment for injuries to other drivers or health problems unrelated to the car accident.
The cost of MedPay varies depending on the coverage amount and your insurance provider. It typically ranges from $2 to $37 per month and can be purchased in set dollar amounts such as $1,000, $2,500, or $5,000. The limit you choose will determine the payout you receive after a car accident, with higher coverage limits resulting in higher monthly premiums.
When deciding whether to add MedPay to your policy, consider your health insurance coverage. MedPay can cover part of your health insurance deductible or co-pays, and once the MedPay limit is reached, health insurance covers the rest. If your health insurance has high deductibles or does not cover car accidents, MedPay could provide valuable financial protection.
Auto Insurance Investigations: How Long Do They Last?
You may want to see also
Personal injury protection
In addition to medical expenses, PIP can help cover the policyholder's health insurance deductible and lost wages due to time taken off work to recover from injuries. It can also provide financial support for surviving dependents if the policyholder passes away in an auto accident. Furthermore, PIP can help pay for necessary services that the injured party would typically perform, such as childcare and housecleaning.
While PIP is not mandatory in all states, it is required in states with no-fault insurance laws. These states include Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah. In other states, PIP coverage may be optional or included as part of the minimum liability insurance required by law.
It's important to note that PIP doesn't cover everything. It typically doesn't cover the injuries of other drivers in a collision or any injuries sustained while committing a crime or receiving payment for driving. To ensure comprehensive coverage, it is recommended to combine PIP with other types of insurance, such as bodily injury liability insurance and property damage liability insurance.
Auto Insurance Coverage: What's Included and What's Not
You may want to see also
Frequently asked questions
Full-coverage auto insurance is a combination of liability, collision, and comprehensive insurance. It covers damages to your car and injuries or damages you cause to others.
Full-coverage auto insurance offers financial protection in the event of a crash, collision, or other incidents such as vandalism or theft. It also covers medical expenses for you and your passengers if you're injured in an accident.
Full-coverage auto insurance is not required by law. However, most states require a minimum amount of liability insurance. Full coverage may be required under certain circumstances, such as when financing or leasing a vehicle.
The cost of full-coverage auto insurance varies depending on factors such as age, location, driving record, and insurance score. The national average for full coverage is $1,765 per year, or about $147 per month, for a 35-year-old good driver with good credit.
To save money on full-coverage auto insurance, you can shop around and compare quotes from multiple companies, look for discounts, increase your deductible, improve your credit score, and avoid traffic infractions.
