Does your car insurance give you full coverage, or could you be left with extra expenses following an accident? Keep reading to find out.
What is a Full Coverage Car Insurance Policy?
You can’t go out and buy a full coverage car insurance policy. Full coverage just means that you bought all the different types of protection with your policy at the highest limits available. That gets you as close to full coverage as reasonably possible.
Are There Exceptions to Full Coverage?
There are two times when you may not be fully covered. The first is if a claim exceeds your policy limits. Remember that even if you buy the highest possible limit, it’s still possible that something like very high medical bills or a wrongful death claim could exceed the policy limits. In addition, one insurance company may have a higher maximum policy limit than another, so buying from one insurance company could give you more coverage than another.
The other exception would be policy exclusions. Your insurance policy is a contract that says exactly what is or isn’t covered. Your car insurance can cover almost everything that could happen with your car, but it doesn’t guarantee coverage for every possible thing that could happen. For example, if you’re drag racing, any accidents would usually be excluded unless it was a legal race and you had a special racing policy.
Why Isn’t Full Coverage Automatic?
Insurance companies give consumers a choice of what coverages to purchase. Each person may have a different risk tolerance or ability to pay for a claim using their assets or secondary insurance coverages. And, of course, buying more coverage will mean a higher insurance premium that you have to budget for.
The law requires drivers to buy minimum coverage that will be enough to handle most accidents because most accidents are relatively minor fender benders. However, if you’re involved in a more serious accident with multiple cars totaled or serious injuries, you’ll find yourself wishing you had more coverage.
What Do You Need to Buy to Have Full Coverage?
If you want full coverage, you should consider selecting the following options when you buy car insurance.
- Liability coverage for injuries or property damage you cause to others while driving.
- Collision coverage for damage to your own car in an accident.
- Comprehensive or other than collision coverage for damage to your car caused by weather, theft, and other non-driving mishaps.
- Uninsured and underinsured motorist coverage so that you’re still able to pay your expenses if the other driver didn’t have insurance or bought too low limits.
- Medical payments and personal injury protection to cover your main health insurance deductible, co-pays, and costs that health insurance may not cover.
- Personal umbrella liability coverage to cover claims against you that exceed your car insurance liability limits.
Your insurance agent can work with you to make sure all of your different insurance coverages give you full coverage, and you have high enough limits to protect your assets. Contact us now to learn more or set up an appointment.