Full Coverage Auto Insurance: State Farm Explained

State Farm's full coverage auto insurance is a package of customer-selected coverage that provides protection for losses involving the ownership or use of vehicles. It includes liability coverage, which pays for another party's medical expenses and property damage if you are responsible for an accident, as well as physical damage coverage, such as comprehensive and collision coverage, which helps repair or replace your vehicle in various scenarios. Comprehensive coverage includes protection from weather conditions, fires, theft, vandalism, and more, while collision coverage includes protection from collisions with other vehicles, objects, or rollovers. Full coverage auto insurance also offers optional coverages like rental and emergency roadside service.

Comprehensive coverage

Comprehensive car insurance can help you recover from a variety of unfortunate events, including weather conditions such as wind damage from hurricanes, floods, hail, and falling objects. It also covers fires and explosions, as well as total or partial car theft and vandalism. If you live in an area prone to weather-related disasters or high car theft rates, comprehensive coverage may be a good option to consider.

In addition, comprehensive coverage can provide protection against damage caused by civil unrest or riots, as well as hitting or being hit by a deer or other animal. It is important to note that comprehensive coverage does not include collisions with objects such as trees or buildings, and separate coverage is required for these types of incidents.

While the definition of "full coverage" may vary across providers, it generally includes both liability and physical damage coverage, such as comprehensive and collision coverage. Comprehensive coverage is a valuable component of full coverage, offering financial protection and peace of mind for a range of unexpected events.

Collision coverage

It's important to note that collision coverage does not include injuries to other people or damage to others' property. It also does not cover damage from weather conditions, theft, vandalism, hitting an animal, fires, or civil unrest. To protect against these types of risks, you would need comprehensive coverage.

When deciding whether to include collision coverage in your insurance plan, consider your car's value. Collision coverage may be more suitable for newer cars, as the value of older cars may decrease over time, making it less necessary to maintain this type of coverage.

Liability coverage

Liability car insurance is divided into two main categories: Bodily Injury (BI) coverage and Property Damage (PD) coverage. BI coverage assists in paying for the bodily injuries sustained by another individual, for which you are legally liable. This means that if your actions cause injury to someone else and you are found legally responsible, BI coverage will help cover the associated costs.

On the other hand, PD coverage addresses the damage inflicted on another person's or company's property during a covered event, as well as the loss of use of that property. For instance, if you crash into a building, PD coverage will contribute to the repairs of the building wall. It's important to note that liability coverage does not extend to repairs of your own vehicle or injuries you personally sustained; separate coverages are required for those scenarios.

The minimum amount of liability coverage mandated by law varies across states. However, it is generally recommended to opt for higher coverage limits than the state-mandated minimums. This is because the consequences of being underinsured in the event of a serious accident can be financially devastating. If the damages you cause surpass your liability limits, you may find yourself personally liable for the excess costs. This could result in consequences such as garnished wages, liens against your assets, or court fees.

To summarise, liability coverage is a crucial aspect of auto insurance, safeguarding you from financial setbacks in the event of causing injury or property damage to others. By understanding the specifics of this coverage and opting for adequate limits, you can better protect yourself and your assets.

Uninsured and underinsured motorist coverage

Uninsured motorist coverage becomes vital in such scenarios, as it provides financial protection for your medical expenses and other costs associated with the accident. It is worth noting that uninsured motorist coverage is not the same as underinsured motorist coverage. Uninsured motorist coverage applies when the at-fault driver has no liability insurance, while underinsured motorist coverage comes into effect when the at-fault driver does not have sufficient liability insurance to cover all your damages.

Underinsured motorist coverage is equally important, as it ensures that you are not left financially vulnerable if the at-fault driver's insurance limits are inadequate. This type of coverage is subject to policy limits chosen by the insured and may vary by state. It is designed to provide additional protection and peace of mind in the event of an accident with an underinsured driver.

The necessity of uninsured and underinsured motorist coverage depends on various factors, including your state's requirements and your specific needs. In some states, Uninsured Motorist Property Damage coverage may be available, which covers damage to your vehicle in the event of a hit-and-run or an accident with an uninsured driver. It is always recommended to consult with a local State Farm agent to determine the specific coverages and limits that are right for you.

Medical payments coverage

• You accidentally hit another car in a parking lot and sustain injuries.
• Your spouse is injured by a car while crossing the street as a pedestrian.
• Your child is injured in an accident while riding as a passenger in a friend's car.

On the other hand, here are some scenarios where Med Pay will not cover expenses:

• Injury expenses exceed your policy's coverage amount.
• Damage to vehicles or other property.
• Injuries to the driver and passengers in another vehicle in an accident where you are at fault (this is covered by separate bodily injury liability coverage).

Unlike health insurance, there are no deductibles or co-payments with Med Pay. It starts paying from the first dollar of incurred expenses, regardless of fault. Additionally, it may cover expenses that your health insurance does not, such as chiropractic visits or ambulance rides.

The cost of adding Med Pay to your policy is relatively inexpensive, typically ranging from $5 to $8 per month, depending on the coverage limits selected.

Frequently asked questions