Full Coverage: What does it mean and do you need it?

July 5th, 2015 by Shawn Reynolds in Auto Insurance, Insurance Basics No Comments »

 

What exactly is the difference between a full, partial, and state-minimum auto insurance policies?

If you’re looking full coverage, it is important to know some of the facts before you buy. Most do not know that “full coverage” may not completely cover everything.

In reality, it generally consists of a variety of car insurance coverage that, all together, offer a reliable and sturdy degree of protection in the event of an accident.

Uncovering the “Full Coverage” Policy

Full coverage is a term typically used to establish numerous insurance coverages that provide ample protection, particularly liability, comprehensive, and collision protections.

Most policyholders consider this as a plan that combines these policies:

  • State-required liability insurance coverage that handles both bodily injuries and property damages to other people in a car accident that the policyholder caused.
  • Collision coverage for damages to the holder’s automobile in case of an accident.
  • Comprehensive coverage that covers theft and other criminal damages that are not caused by an accident.

Even with this combination, the particulars and degree of protection vary depending on the insurance company providing the policy.

Auto insurance companies provide a number of policy types that are NOT part of the “full coverage” domain, but are sometimes still worth taking into consideration.

Here is a handful of them:

  • Medical payments coverage
  • Uninsured/underinsured motorist coverage (UM/UIM)
  • Emergency road service coverage or the roadside assistance or towing and labor coverage
  • Customized parts and equipment coverage
  • Rental car coverage
  • Gap coverage or the auto loan/lease coverage

Full Coverage is more like an Excellent Coverage

Although full auto coverage supplies a great deal of protection when it comes to liability and the well-being of the vehicle, it doesn’t mean that the policyholder will not have to pay anything up front following a car accident.

For drivers in Georgia opting for a “full coverage policy,” the motorists will be insured up to the limitations they’ve selected.

If the damage is greater than the liability limits, the driver can be lawfully responsible for the difference. It’s also good to remember that any time the comprehensive or collision insurance coverage kicks in, the policyholder also must pay the insurance deductible.

Let’s get you into a new car (insurance policy). 

Shawn is the CFO and Co-Founder of Signature Insurance Group. In addition to his being raised in a family whose involvement in the insurance industry stretches back six generations, he has personally been in the business since 1999.

Shawn enjoys spending time with his wife, Holly, and three sons, Braxton, Hudson, and Maddox.

Shawn can be reached at Shawn@SIGWinder.com.

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