All about full coverage car insurance
Full coverage car insurance can be confusing when looking for auto insurance quotes. Insurance companies will never cover all possible situations that arise for car owners. The term "full coverage" causes confusion for some insurers when they try to apply for a situation that is not actually covered by insurance.
Drivers and insurers use the term "complete coverage" to describe a policy that includes mandatory third party liability insurance, as well as additional insurance coverage: comprehensive and collision insurance:
- Liability for bodily injury extends to injury and death for which you are responsible.
- Liability for property damage covers damage caused to someone else's property by your car.
- Comprehensive insurance covers damage to your car as a result of vandalism, theft or broken glass.
- Collision insurance covers damage to your vehicle as a result of a collision with an object.
These types of coverage come with maximum limits that you choose when you create your policy.
Because liability insurance does not protect your vehicle in any way, it is important to purchase separate insurance against physical damage. Most lien holders require physical damage coverage if you finance or rent your car. Each of these insurance coverages includes a deductible, which is the amount of money you pay before your insurance benefits begin.
Collateral holders often require car insurance with full coverage - this includes physical collision damage insurance and a comprehensive policy. Please be aware that whatever insurance coverage you choose, you must comply with the terms and conditions set out in the policy, especially with regard to the payment of claims. Read the fine print carefully before signing.
The cost of adding collision and comprehensive coverage to your existing insurance policy varies, so be sure to search and compare prices across different car insurance companies to get the best deal for you.
This article is adapted with the approval of carinsurance.com: http://www.carinsurance.com/what-is-full-coverage.aspx
