Many times, you may hear auto insurance called full coverage. That is not a specific type of policy. Rather, it is a term people use to refer to coverage that protects against the most common risk factors for drivers. Every driver needs a customized car insurance policy. It should meet your specific risks based on where you live, what you drive, and your driving history. To you, full coverage should mean complete protection for the things most likely to cause you loss. Here’s more about what that may include.
Defining Full Coverage for Your Needs
It is best to meet with your auto insurance agent to talk about what your specific needs are. Most drivers need a policy to minimize financial loss from accidents, theft, storms, vandalism, and other risks. Here are some specific types of coverage that are generally a part of a full coverage package.
Liability insurance covers other drivers if you cause damage to their car, such as hitting them in an accident. Most states have a minimum requirement for this type of policy. That is rarely enough. Most people need to have at least $100,000 per person, $300,000 per accident in liability protection. However, this varies from state-to-state.
Though this name also can be misleading, comprehensive car insurance covers accidental damage to your car that you cannot prevent. It may include things like theft and storm damage, for example. It covers the repairs or, in severe cases, the replacement of your car for these types of risks.
Most full coverage requirements also include collision insurance. This policy applies when you suffer damage to your car due to striking something else. It applies when you collide with another option, including another car, and have damage on your vehicle. This coverage will pay for the repairs to your vehicle.
Uninsured and Underinsured Coverage
Most drivers need this coverage as well. It helps pay for costs related to the repairs to your car that someone else causes. Normally, their liability insurance would cover this. However, they may not have insurance or have enough to cover your losses.
Other types of coverage exist as well. Medical payments may be beneficial to cover losses related to your medical bills. Some drivers also benefit from riders for high-end equipment and customizations. Work with your auto insurance agent at 713-227-7283 to create a solution for your car.
Also Read: Auto Insurance Claims for Hail Damage Explained