When an insurance company, agent, or lender talks about full-coverage car insurance, they are usually referring to a combination of comprehensive and collision insurance, plus any other coverage mandated by the state. Comprehensive insurance covers damage to the vehicle that is not caused by an accident, such as vandalism or a natural disaster. Full coverage is a term used more by consumers than by car insurance companies. It is important to note that full coverage does not include reimbursement for the rental of the vehicle while yours is being repaired or replaced.
This type of coverage is offered separately and is generally not included in the term full coverage. With a wide range of coverages, you can be “fully protected” against a variety of vehicle hazards, from injuries and collision damage to weather events, wildlife encounters and acts of vandalism. For instance, personal injury protection (PIP) and MedPay are mandatory in certain states and would therefore be included in total coverage in these locations. Comprehensive insurance isn't required in any state, but dealers and lenders typically require comprehensive insurance, along with collision insurance. In that case, it's definitely worth taking out comprehensive insurance, as not meeting the requirements of the lender or landlord could result in expensive insurance and even in the recovery of the property. Before deciding on full coverage car insurance, consider if the age, mileage, or wear and tear on your vehicle mean that the payment you would receive from your insurer is not worth the additional monthly payments for full coverage. Instead, choose a combination of coverages that you think is sufficient to manage all aspects of a car collision.
Full-coverage car insurance offers maximum financial protection when you're involved in a car accident.
