Full Coverage Car Insurance

Full Coverage Car Insurance

‘Full Coverage Car Insurance’ as the name suggests is an insurance that covers complete protection of the vehicle covering all the aspects of the coverage for the repair or damage you do to any property or person while on the road. However, the provider judges and quotes the premium for the same based on your income, risk profile, and assets.

Incidents that Fall Under Full Coverage

Full coverage car insurance cover:

  • Any damage you do to any property or person. However, the coverage is up to the limits of your liability coverage.
  • Destruction of your car through any natural disaster then you get the fair market value of your car minus the deductible.
  • You also get the worth of your vehicle in the current market scenario minus your deductible in case of a robbery.
  • Injuries caused to you or your co-passengers if an uninsured driver hits you. However, the coverage is up to the limits of your uninsured motorist policy.

Core Foundation of Full Coverage

The core foundation of full coverage includes all the essential auto policies depending on the minimum standards of the insurance policies defined and governed by the respective state governments of the country.

  • Liability Coverage: This policy is mandatory in almost all the states. It covers medical expenses of an injury caused to a person or damage caused to a vehicle in case of an accident.The limits of the liability coverage define the maximum payment for bodily injury per person, property damage or physical injury per accident.
  • Comprehensive Coverage: This covers the repairing cost of physical damage to your car caused due to natural disasters or uncontrollable circumstances like fire, theft, hailstorm, and vandalism.
  • Collision Coverage: This is the coverage if in case you enter into a collision with any vehicle or non-living object.
  • Medical Coverage: Also known as Personal Injury Protection, this policy covers the medical expenses of an injured person to a pre-defined level.
  • Uninsured Motorists Coverage: This provides extra benefits to you and the co-passengers concerning the medical costs if in case an uninsured driver hits your car and you get involved in an accident. However, there are certain liability limits set by the government of different states respectively.
  • Towing and Rental Reimbursement Coverage: This covers the cost of emergency road service. If in case there is a car breakdown while driving, you can call for towing and emergency services at no extra price paid for the assistance. Some companies do not offer towing services, but then they give rental reimbursement coverage that adds coverage for a rental car in case of car damage, breakdown or towing.

The Need for Full Coverage Insurance

In most of the cases, comprehensive and collision policies provide all the benefits of insurance. However, there are specific factors that play an integral role for in deciding whether you need full coverage or not. Full coverage insurance can be beneficial if:

  • You have a highly expensive car
  • You have to commute daily and that too between heavy traffic areas
  • You reside in a place prone to high risk of animal collision or theft ratios
  • You stay or work in an area that experiences extreme weather conditions

Cost of Full Coverage Car Insurance

The average for a full coverage policy in the USA as revealed by the National Association of Insurance Commissioners is approximate of $74.03 per month. However, the actual cost depends on various factors like your age, state you live in, credit history, driving record and of course, the car you drive, and you want to insure. The rates vary from company to company, and the premiums range from person to person in response to various judgmental factors analyzed and verified by the insurance companies.

The average coverage limits as compared from topmost insurance providers are as follows:

  • Liability coverage per person is $100,000 for physical injury
  • Liability coverage per crash is $300,000 for bodily harm
  • Liability coverage per accident is $50,000 for damage to property
  • Physical injury coverage per person is $100,000 with an uninsured motorist
  • Physical injury coverage per crash is $300,000 with an uninsured motorist
  • Collision and comprehensive coverage with deductible of $1,000