So what if I tell you that you should not be fooled by the term full coverage? In this article, I’m going to explain what full coverage actually is and how not to get fooled by the term.
What is full coverage? Everyone who has auto insurance always comments that they have full coverage on their policy, and even insurance agents use the term full coverage to sell auto policies under the guys that you are fully protected, no matter what happens to you during an accident.
But let’s take a look at what full coverage actually is and what it covers. In general, if you Google the term full coverage, it is generally defined as a combination of collision comprehensive and liability coverage.
Now let’s take a look at what these coverages actually are. Liability coverage will protect you if you are at fall for an accident and you need to cover another persons or businesses damages. Comprehensive coverage protects your vehicle if it is damaged by an act of nature and collision coverage covers your vehicle if it collapsed with another vehicle or another object.
Now these are the only coverages that you have, then you are not fully covered.
For one, you don’t have any MED pay or pip coverage to cover yourself from any injuries that you may sustain in an auto accident.
Number two, you don’t have any rental reimbursement coverage, which gives you an allowance so that your insurance company can pay for a rental vehicle while your primary vehicle is non drivable.
And the final thing that you won’t have under the general definition of full coverage is uninsured or under insured motorist protection coverage. Uninsured motorists coverage will protect you if you’re involved in an accident that is not your fault. The other driver doesn’t have insurance or you are involved in a hit and run accident.
Under insured motorists coverage will cover you when the other driver is at fault for an accident, but they do not carry enough insurance limits to fully reimburse you for all of your damages.
These four coverages by definition will be coverages that you are missing if you get sold or only sign up for full coverage. So if you feel like this is you, check your policy and make sure you have all the coverages that you could possibly be if you were ever involved in an accident.