Full Coverage Auto Insurance: What You Need To Know

Full coverage auto insurance is a combination of liability, comprehensive, and collision insurance that covers you in most scenarios. While there is no consensus on what full coverage means, it typically includes protection against physical damage to your vehicle, as well as financial protection if you're at fault for an accident. This means that full coverage insurance will pay for damages to your vehicle, the occupants of your vehicle, and other vehicles and passengers in an accident. It's important to note that full coverage auto insurance doesn't exist as a single policy, but rather as a combination of different types of coverage.

Liability insurance

Liability coverage is split into two components: bodily injury liability and property damage liability. Bodily injury liability covers the cost of another person's injuries if you are at fault in an accident, up to the policy's limits. Property damage liability covers damage to other vehicles or property when you are at fault. The policy limit for this type of coverage is listed as a single dollar amount, representing the maximum payout per accident.

Collision insurance

When selecting collision insurance, one important consideration is the deductible, which is the amount you are willing to pay out-of-pocket for repairs before the insurance coverage kicks in. A higher deductible typically results in lower monthly premiums, but it also means you will have to pay more out of your own pocket in the event of an accident. On the other hand, a lower deductible will increase your monthly premium but provide greater financial protection in the event of a collision.

While collision insurance covers a wide range of collision-related damages, it's important to note that it does not cover all scenarios. For example, it does not typically cover damage due to theft or vandalism, or damage caused by natural disasters such as floods or hail. For protection against these types of incidents, comprehensive insurance is usually required in addition to collision coverage.

In summary, collision insurance is a crucial aspect of full coverage auto insurance, providing financial protection for vehicle owners in the event of a collision. By understanding the benefits, considerations, and limitations of collision insurance, drivers can make informed decisions about their coverage options and ensure they have the protection they need.

Comprehensive insurance

The cost of comprehensive insurance can vary depending on factors such as the value of your vehicle, your chosen deductible, and your state's insurance requirements. It is important to note that comprehensive insurance does not cover every possible scenario, and you may need to purchase additional coverage for other types of losses.

Uninsured motorist coverage

Uninsured Motorist Bodily Injury (UMBI)

This coverage pays for medical bills, including those of your passengers, if you are hit by an uninsured driver. It may also cover pain and suffering, lost wages, and other types of damages not typically covered by health insurance plans. In some states, UMBI does not include a deductible, which means you won't have to pay anything out of pocket.

Uninsured Motorist Property Damage (UMPD)

UMPD covers damages to your vehicle, and possibly other property such as your house, fence, or personal items, if you are involved in an accident with an uninsured driver. This coverage is particularly useful if you do not have collision coverage, as it can help pay for repairs to your vehicle. However, it's important to note that in some states, UMPD will not cover hit-and-run incidents, and you would need collision coverage for such cases.

In addition to the above, some states may offer underinsured motorist coverage, which comes into effect if you are hit by a driver who does not have sufficient insurance to cover the damages. This coverage includes underinsured motorist bodily injury (UIMBI) and underinsured motorist property damage (UIMPD).

While not all states mandate uninsured motorist coverage, it is highly recommended for all drivers. Without it, you could be left with significant financial burdens in the event of an accident with an uninsured or underinsured driver.

Medical payments

MedPay can help pay for medical expenses for you or your passengers, regardless of who is at fault in the accident. It can also pay for medical bills if you or a family member is hit by a car while on foot or riding a bike. The types of services covered by MedPay include:

• Hospital visits or stays
• Ambulance and EMT fees
• Surgery, X-rays, and dental procedures
• Nursing services and care
• Health insurance deductibles and co-pays
• Funeral costs following a fatal crash

MedPay coverage limits typically range from $1,000 to $10,000, depending on the state and insurer. It is generally recommended to carry coverage equal to your health insurance deductible so that MedPay can cover your out-of-pocket medical expenses. If you don't have health insurance, consider a higher MedPay limit to cover your medical bills after an accident.

MedPay should not be confused with personal injury protection (PIP). PIP is sometimes mandatory and offers more extensive benefits than MedPay, such as wage reimbursement for missed work due to injuries. However, PIP often includes a deductible, whereas MedPay typically does not.

Frequently asked questions