Of the many different types of car insurance, one of the better known is full coverage auto insurance. But what exactly does that mean, does it include all types of coverage, and is it right for your particular needs?
What does Full Coverage Actually Mean?
The truth is that there is no such thing as “full coverage” in the sense the one insurance policy can cover everything. Even with full coverage there are exceptions that insurance companies will not cover. However, it does include a number of different policies that when put together provide a substantial package of insurance coverage which includes the following;
- State Minimum Liability
- No-Fault Insurance Coverage
Essentially, this covers damages that were caused by collision, accident, vandalism, theft, and other types of damage that was not caused by an accident. However, it is important that you read the fine print because there may be certain types of damage that might not be covered. Flood and fire are two types of damage that may not be covered by your full coverage insurance, so be sure to read everything first to know what might be missing. Learn how to get full coverage without down payment.
Am I Eligible for Full Coverage without a Valid Driving License?
Simply yes but it depends on the status on your driving license. We have already covered this topic here.
Additional Types of Coverage:
Despite the name, you do not get all the different types of coverage that are available. Instead, you may want to delve into different types of policies to come up with the right combination that works for your needs.
For example, you may live in an area where flooding is an issue or perhaps in a place where many drivers are under-insured. In any case, understanding the different types of coverage available will help you make a better choice to fit your particular needs.
- Uninsured & Under-Insured: Most states require uninsured motorist, but under-insured will help cover the gap.
- Rental Reimbursement: Coverage for rental costs while you wait for your vehicle to be repaired.
- Medical Payments: Even if you were at fault, this will cover your medical payments.
- Gap Insurance: This is when your vehicle is totaled in an accident and will pay the balance between what you owe on your loan or lease and the actual value of the vehicle itself.
- Emergency Road: This is excellent coverage if your vehicle breaks down while on the road and you need a tow or repair services
- Customized Equipment & Parts: If you have enhanced your vehicle with expensive parts and equipment, this will help you cover the cost of damage to that part of your vehicle.
What Coverage is Right for You?
To find the best coverage for your needs starts by looking at all the policy options available and then comparing them to what full coverage offers for your vehicle. In addition, you will need to look at the following;
- Fair Market Value of your Car or Truck
- Health Insurance Coverage
- Where You Live
- Your Budget
You may find that full coverage car insurance is not right or perhaps too expensive for your means. When you start with the basics and work your way up to other policies that you may or may not use, you can find the right balance between proper coverage that meets most, if not all of your needs and a price that fits your budget.