What Is Full Coverage Insurance?
To know what full coverage insurance is, you have to first understand that it is a trick question. There is no such thing as “full coverage insurance.” We know what you’re thinking. That can’t be true. You have probably heard the term from friends, family and even the dealer where you bought your car if you took out a loan for it. The truth is, it’s just a saying. It’s a common misconception, but it can prove dangerous if you are unclear on its true meaning.
All you have to have on your policy for it to be considered “full coverage” is the required liability plus comprehensive and collision coverage. You can review all of these coverages here. Briefly, liability is the insurance you must have to drive, that protects other people and their property. Collision and Comprehensive protect you and your own car, and require that you pay a deductible, a piece of the price of the repairs before your insurance will step in.
All of that coverage is great, but don’t think because it is full coverage that you are completely protected. There are so many other coverages available. Thinking that you have full coverage, you might think that you are protected from things that you really are not. You may be surprised to find that you are not protected from an uninsured motorist hitting your vehicle or that your custom rims would not be covered after a theft.
Don’t let yourself be caught off guard because you thought you had full coverage. Check out the terms of your policy and your Declarations Page to see what specific coverages you have, and what you don’t have.
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