Full Auto Insurance Coverage Explained

Full coverage auto insurance is a combination of comprehensive, collision, and liability insurance. This provides coverage for most scenarios, including damage to your car from weather, an at-fault accident, hitting an animal, or vandalism. However, it's important to note that there is no standard definition of full coverage and it does not include 100% protection in all situations. The specific coverages included in a full coverage policy can vary and may be supplemented with additional protections like uninsured motorist coverage, personal injury protection, medical payments, and gap insurance.

Liability insurance

The cost of liability insurance depends on various factors, including the level of coverage selected. Most states require drivers to carry a minimum amount of liability insurance, and it is important to check the specific requirements of your state. Failing to obtain adequate liability coverage can result in legal consequences, such as license suspension or fines.

While liability insurance is a crucial component of full-coverage auto insurance, it is important to note that it does not provide complete protection in all situations. Full-coverage auto insurance typically includes additional types of coverage, such as collision and comprehensive insurance, to provide more comprehensive protection for the insured vehicle and its driver.

Collision insurance

It's important to note that collision insurance does not cover damage to your car from non-traffic events, such as theft, vandalism, or extreme weather conditions. This is covered by comprehensive insurance, which is often purchased alongside collision insurance. Comprehensive insurance covers damage that is outside of a driver's control, whereas collision insurance covers events within a driver's control.

The cost of collision insurance can be high, but you can lower your premiums by choosing a higher deductible. This means that, in the event of a claim, you will need to pay more upfront, but your insurance provider will cover the remainder.

Comprehensive insurance

Liability insurance provides financial protection if you are at fault for an accident, including bodily injury liability coverage and property damage liability coverage. Collision insurance covers the cost of repairs to your car after a collision with another object, such as a vehicle or a tree. Comprehensive insurance, on the other hand, covers damages caused by incidents outside of your control and not resulting from a collision.

Full-coverage auto insurance provides financial protection in most scenarios, including damage to your vehicle from weather events, at-fault accidents, collisions with animals, or vandalism. It is important to note that full-coverage auto insurance does not provide 100% coverage in all situations, and the specific coverages included may vary.

Uninsured motorist coverage

The specifics of uninsured motorist coverage can vary depending on your state's requirements. Some states may require a deductible for underinsured motorist property damage coverage, while others may not. Uninsured motorist bodily injury coverage, on the other hand, generally doesn't include a deductible. This coverage pays for medical bills for both you and your passengers if you're hit by an uninsured driver.

In addition to medical expenses, uninsured motorist coverage can also extend to property damage. This means that if your vehicle is damaged or totaled in an accident with an uninsured or underinsured driver, the coverage will help pay for repairs or replacement. This can be particularly valuable if you have a new or expensive car, or if you're still making payments on an auto loan or lease.

When deciding on the amount of uninsured motorist coverage to opt for, it's generally recommended to match the amount of your liability coverage. For example, if your liability coverage limits are $50,000 per person and $100,000 per accident, choosing similar limits for uninsured motorist coverage ensures adequate protection.

While uninsured motorist coverage is not mandated in all states, it is a highly recommended addition to your full-coverage auto insurance policy. Without it, you could be left financially vulnerable in the event of an accident with an uninsured or underinsured driver.

Personal injury protection

The requirements for personal injury protection coverage vary from state to state. In no-fault insurance states, drivers are required to carry PIP coverage, while in at-fault states, it may be optional or not required.

Frequently asked questions