What is Auto Insurance Full Coverage and How Does it Work?

First, you should realize there is truly no policy called as full protection auto insurance coverage. Auto insurance companies do not supply an auto insurance policy that covers every little thing. Then what is auto insurance full coverage, and how does it work? Well, that’s exactly what I’m going to show you so that you could make a better decision about your auto insurance policy.

What is Auto Insurance Full Coverage?

People will always choose minimum coverage instead of full coverage, which offers extra protection than their state required. Full coverage covers all the main elements of uninsured, property damage, Personal injury, bodily injury protection, comprehensive and collision. But, when you drive a vehicle, you only required half of those main elements, so that’s why people select the minimum instead of full protection.

Difference Between Minimum and Full Insurance Coverage

From all insurance policies, I mentioned earlier, you only have to have just one insurance policy if you want to drive. That’s the minimum insurance coverage according to the laws of many states.

Usually, that coverage is liability insurance coverage. This means if you engaged in a car accident and it’s your fault. This coverage covers the cost for other driver’s damages and vehicle repairs. You would have no more options if your vehicle totaled, then you have to purchase a new car without any help from your insurance provider. When you have full insurance coverage, things will be much easier. The insurance company might replace your vehicle or cover some costs in case of a particular scenario.

However, now you should have a better idea about the risk minimum insurance coverage has when compared to full insurance coverage. I strongly recommend that you should always choose full insurance coverage instead of the minimum.

Who Needs Auto Insurance Full Coverage?

Full coverage auto insurance is pretty much expensive. You might ask then, is it worth having something like this? Yes, it is worth spending that much money on something that is not likely to happen. I have included 5 examples here then you can decide whether it is still worth it for you or not.

Expensive Vehicle

If you own an expensive car, you need full coverage. In the event of an accident, if your vehicle is severely damaged or totaled. Whether if it’s your fault or not, then you might lose a massive amount of money way more than you’d spent for full coverage.

Accident Fault

Usually, when an accident happens, both sides’ insurance companies decide the fault percentage. If the decide 70% of the fault belongs to you and 30% of the fault belongs to other drivers, then your cost will be severe.

Still paying car payments

It’s a condition all loan companies make. You should have full coverage if you need a lender. You have to be careful about this. If you don’t maintain full coverage, insurance companies have all the rights to repossess your vehicle.

Lot of Driving

If you drive a lot, especially in severe weather conditions, your chances of having an accident rise dramatically. Regarding this, I recommend you get your full insurance coverage immediately.

Vehicle Outright

Even you have a vehicle outright. You can’t replace it if your vehicle is totaled. Therefore you need full insurance coverage in case another driver caused the accident, and he doesn’t have insurance. Most importantly, you have to cover all the expenses yourself.

What is Auto Insurance Full Coverage?

Earlier I have mentioned that there is nothing as full protection auto insurance coverage, and it doesn’t cover anything practically. Despite this, there are three main types of insurance policies that protect you and your passengers.

Comprehensive Insurance Coverage

This coverage covers all the damages which happened to your car that aren’t as a result of a collision with someone else car. For example, damages occur due to fire, theft, vandalism, and weather.

Collision Insurance Coverage

This coverage covers your vehicle if it’s damaged in a collision. With this, you can replace your car too. But it does not cover someone else bodily injury or vehicle.

Liability Insurance Coverage

If you engaged in a car accident and it’s your fault, then this coverage covers the cost for other driver’s damages and vehicle repairs. Also, this coverage will include charges to your legal defense

There are 3 additional coverage’s that all insurance providers have offered to you and your passengers.

What is Auto Insurance Full Coverage PIP (Personal Injury Protection)

This insurance coverage covers your personal medical funds. For instance, PIP insurance will cover fees for injuries that happen due to an accident. Also, this will pay lost wages too.

Underinsured/Uninsured Motorist Insurance Coverage

If you injured in a car accident and if the opposite driver doesn’t have insurance protection to cover your damage, then this protection will cover your damage.

Medical Funds Insurance Coverage

This coverage covers all the passengers who were injured in your car accident regardless of whose fault this coverage will cover all the medical expenses.

black car having a fire on the road which has auto insurance full coverage
Vehicle Fire

How Much Does Full Coverage Cost?

The cost of full coverage decides according to plenty of elements. Such as,

  1. Your Age
  2. Location of your’s
  3. Your driving history
  4. The sort of vehicle you drive
  5. The insurance company you select
  6. The coverage type you select
  7. Your deductible
  8. Your coverage limits

The insurance company always thinks about you as a risk. If you are a good driver with good driving history, then you will get a reasonable price that you might feel affordable.

With some research, I have included some details regarding 5 cities in the US. From here, you can identify the difference between the minimum and full coverage costs.

City Full Coverage Cost ($) Minimum Coverage Cost ($) Cost Difference ($)
Detroit 8,718 5,610 3,108
Los Angeles 2,706 1,128 1,578
Atlanta 2,130 876 1,254
New York City 4,560 1,980 2,580
Boston 2,646 954 1,692

Getting full coverage had looked double the cost, but having full insurance will save a considerable amount of money if something terrible happens. I would always recommend you to have full insurance coverage instead of minimum insurance. But, the final decision belongs to you.

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