Many drivers are unaware that “full coverage” car insurance doesn’t actually exist. In fact, it’s a term that’s often used to refer to the combination of the following types of auto insurance coverage:
- State-required liability or no-fault insurance coverage to cover bodily injury and property damages to others in an accident you are found to have caused.
- Collision coverage to pay for damages to your vehicle in the event of an accident – regardless of who is at fault.
- Comprehensive coverage, which is designed to cover vandalism, theft, and other damages that are not the result of an accident, such as a weather-related loss.
In the end, a “full coverage” policy is typically one that includes several types of car insurance coverage that, as a whole, provide you and your vehicle with a solid blanket of protection in case of an accident, theft, or vandalism. Details and amount of protection will vary from company to company issuing the policy. Therefore, you need to ask questions and read the fine print carefully.
Additional Coverages to Consider
Consider adding one or more of the following insurance coverages if you are looking for a very comprehensive car insurance policy:
- Uninsured and underinsured motorist coverage – helps you cover your costs for injuries and property damage caused by a hit-and-run driver or a motorist without liability insurance. It will also cover medical bills and car repair bills if higher than the other driver´s liability coverage. Drivers with an SR-22 insurance filing typically only carry minimum liability limits as required by state law.
- Medical payments coverage – covers medical expenses up to policy limits for anyone injured in your vehicle – regardless of who is at fault. It also covers you and your family members in the event you are involved in an accident as a pedestrian.
- Gap insurance – if your vehicle is totaled in an accident, this coverage helps pay the difference between the amount you owe on your loan or lease and the vehicle’s estimated actual cash value.
- Emergency roadside assistance – covers towing and labor costs if your vehicle is disabled, up to your policy’s stated limits.
- Rental car reimbursement – covers the cost of a rental car should your vehicle be damaged in an accident and be out of service for longer than 24 hours.
While “full coverage” means different things to different people – why not talk with one of our insurance representatives to discuss the coverage that is right for your specific needs and budget? One thing to remember is – whether you are shopping for car insurance in Alabama or another state, knowing the true meaning of “Full Coverage” could save you money on your auto insurance.