What Does Full Coverage Auto Insurance Mean

Description

a lot consumers refer to certain portions of an automobile insurance policy as “full coverage” insurance. Auto insurance has a lot parts but not all coverages are appliccan all drivers. When a driver says they have “full coverage” insurance, it may not mean they have all the coverage they need. Most individuals who refer to full coverage are typically referring to the comprehensive and Impact portion of an auto insurance policy in addition to needed liability and/or personal wound prevention coverage.

Comprehensive and Impact

Comprehensive insurance will reimburse a policyholder for damage or damage due to theft, vandalism, wind, flood or Impact with an animal. Comprehensive is also referred to as “other-than-collision” insurance because it covers losses not caused by an auto accident. Alternately, Impact insurance covers damage or damage resulting from an auto accident. If a auto collides with a stationery object, damages will also be covered under the Impact portion of the policy.
Both comprehensive and Impact insurance are subject to a policy deductible. A deductible is a small portion of the damage that the policyholder have to pay out of pocket before the insurance organization pays. Insureds are free to pick a deductible they feel they can afford if a claim is filed. Deductibles range from $50 to $1,000 or more. The lower the insurance deductible, the higher the insurance premium.

Misconceptions

a lot person are under the assumption that if they carry liability insurance, medical payments coverage, and comprehensive and Impact coverage they are prevented at any time for any reason. This is not the situation. Insurance policies are limited in the extent of coverage they provide. For example, insurance policies do not automatically cover a tow from the scene of an accident or rental car while a auto is being fixed. Policyholders have to request these additional coverages and not
assume they are not automatically included in the insurance policy.

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Considerations

An important note to consider is that insurance policies only cover the actual cash value of a auto if it is totaled or stolen. This means the policyholder will only be reimbursed for the depreciated value of the vehicle. Typical auto insurance policies will not pay off a car loan. Policyholders have to carefully consider what coverages apply to their insurance policy and to what extent. Insureds have to inquire about what they are getting when requesting full coverage insurance to avoid any surprises if a claim is filed.