Full coverage car insurance provides significantly more protection for you and your vehicle. But what does “full-coverage” auto insurance cover? In this blog post, we’ll take a closer look at all the nitty-gritty details so you can make an informed decision about your car insurance coverage.
What is full coverage car insurance?
It’s an all-in-one insurance policy that offers a broad range of coverage for policyholders. It is not a formal type of coverage but a term used to describe a group of coverage options typically included in a policy.
This includes liability, gap, PIP, comprehensive, and collision coverage. Besides this, some “full coverage” insurance policies may include additional types such as uninsured motorist coverage and 24-hour roadside assistance.
Generally speaking, “full coverage” car insurance aims to provide policyholders with a comprehensive protection package.
What is covered by Full Coverage Car Insurance?
Full car insurance coverage protects you financially in an accident, whether caused by you or another driver. It typically includes all the most extensive available car insurance policy options. It also covers non-collision damage to your vehicle, such as theft, natural disasters, and vandalism.
Let’s take a quick look at what a full-coverage car insurance policy includes.
Liability Coverage:
This type of insurance helps to cover costs associated with any damage to property or injuries caused to others while driving your vehicle. It typically includes both bodily injury and property damage liability.
Collision Coverage:
A full coverage insurance policy covers the costs of repairs or replacement of your vehicle in case of an accident, regardless of who is found to be at fault.
Comprehensive Coverage:
This type of insurance provides financial assistance for repairs or replacement of your vehicle in the event of non-collision incidents such as theft, vandalism, natural disasters, and incidents involving falling objects.
Personal Injury Protection (PIP):
Personal injury protection coverage (PIP) includes bills from medical treatment, lost income, and other expenses related to injuries sustained in a car accident, providing financial assistance to help you recover. This type of Coverage is considered necessary in some areas and optional in others.
Additional Coverage:
Gap coverage, towing and labor coverage, rental car coverage, and custom parts and equipment coverage are examples of additional car coverage. These add-ons can be included in a full insurance policy based on your specific needs.
Technically, this is all the protection you need and deserve — upgrade to Loss Pay’s full coverage car insurance and protect your vehicle today.
Difference between Full Coverage Car Insurance and Basic Liability Coverage
The primary distinction between full coverage auto insurance and basic liability coverage is the amount and type of protection provided. Full coverage insurance mainly contains liability coverage and additional types of Coverage for your vehicles, such as collision and comprehensive Coverage.
In contrast, basic liability coverage only covers damages or injuries caused to another driver or their property while operating your vehicle. Full Coverage protects your vehicle and any injuries sustained in an accident, whereas basic liability protects the other party.
Difference between full Coverage Car Insurance and Comprehensive Coverage
Comprehensive Coverage specifically refers to non-collision damage protection (e.g., theft, unfortunate event, natural disasters).
Full Coverage, on the other hand, may include additional benefits such as medical payments, rental car coverage, and towing.
What is a Customized Full-Coverage Car Insurance?
A customized full-coverage car insurance policy is tailored to the policyholder’s specific needs and preferences. Customized Coverage includes:
- Adding or removing particular types of Coverage.
- Adjusting coverage limits.
- Adding endorsements or riders to the policy.
Policyholders can also make alterations in their Coverage based on factors such as the insurance declared value of their vehicle and by adding or removing various add-ons.
Insurance companies that offer customized full-coverage car insurance policies typically allow customers to build their policies by selecting the coverage options they want. This Coverage is generally less expensive and ensures you receive what you only require.
Why do I need Full Coverage Car Insurance?
some reasons that why it’s important to have full coverage car insurance for your luxury car:
- Financial loss protection: In the event of an accident or other covered incident, full coverage car insurance can help cover the costs of vehicle repairs or replacement and any medical expenses that may be racked up. Full auto coverage can protect you from financial loss and relieve you of the responsibility of paying for these expenses out of your wallet.
- Mandatory legal requirements: Many states have laws requiring drivers to have specific types of car insurance coverage, and full coverage car insurance generally fulfills these requirements.
- Peace of mind: A full-coverage car insurance policy can give you peace of mind while you’re on the road. Protecting yourself against many dangers and incidents can provide peace of mind while driving.
- Alleviate financial burden: Full coverage car insurance can help alleviate the financial burden and stress that can accompany an accident or other covered incident, as well as give you the confidence to drive knowing that you’re protected against unforeseeable events.
- Secure your investment: Because your car is a significant investment, having full coverage car insurance can protect it from any unfortunate incident.
Takeaway
Full coverage car insurance is crucial for any vehicle owner. It offers excellent protection for you and your vehicle, covering the costs of repairs or replacement in case of an accident or non-collision events like theft, natural disasters, and vandalism.
You can find the best full-coverage car insurance policy for your needs and budget by shopping around, comparing coverage options, and looking for discounts. And when it comes to finding the best Coverage, pair your full coverage policy with LossPay – the only insurance provider for diminished value vehicle losses.
What classic insurance providers historically have not covered is diminished value. When a vehicle is damaged in an accident and repaired, its resale value may be less than that for a comparable vehicle that has not been damaged. It’s called Inherent Diminished Value (or vehicle Loss of Resale Value). LossPay’s revolutionary insurance covers these losses – check out their coverage today!
