Full Coverage Auto Insurance

Full coverage auto insurance does not exist and it is a misunderstood term that floats around on the Internet and beyond. Usually people think of full coverage auto insurance as the whole kitchen sink of policies. Basically, this would imply that if you have full coverage auto insurance, you would (wrongly) assume you are covered against every imaginable loss. If full coverage auto insurance does not exist, then what do you do?

Well, it is important to learn the real terms of insurance companies when you realize that full coverage DWI automobile insurance does not actually exist. Though, you still want your auto insurance to amply cover you against Bodily Injury Liability (liabilities that you cause to other people in terms of injuries) and to their property in terms of damage (called Property Damage Liability). Liability coverages have a deductible, which you are required to pay before the auto insurer will pay your claim. And, the other stipulation is that they have to determine that will pay the claim.

You will see terms such as deductible, which we covered already, and limit. In addition to limit (this is the maximum your insurer will pay per incident. To make the process a little more confusing for you, you have to follow the numbers that are provided in your policy next to the item for which you are covered. For Bodily Injury Liability, you might see the per person maximum payout (say it is $100,000) and the maximum limit for the whole accident ($300,000 is one option).

Terms to Know

There are some other terms to know as you replace your false definition of full coverage auto insurance. When you go online and shop around and compare quotes from competing auto insurance companies, you may see some other terms commonly. It depends to an extent in which state you live, when certain terms will appear in each quote or not. For instance, if you live in New Jersey, then you are familiar with Personal Injury Protection, or PIP. It will cover you if you are in an accident that prevents you from going to work (covers lost wages up to certain limits) and will cover medical expenses, regardless of who is at fault.

In other states you are required to carry not only liability for what you could possibly do to other people and their property, you are required to cover against what full damages to property and injuries other drivers may cause to you, your family, passengers and your property. This is either to protect against Uninsured Motorists Bodily Injury or Property Damage. In addition you may also see that there are minimum requirements for your state.

While other drivers may be within the legal coverage limits, often times these limits are too low to cover actual damages that would be financially sustained in the case of an accident. This is why there is Underinsured coverage. This will cover hopefully the full difference between the underinsured's insurance coverage and your actual property damage (up to your full limits of coverage, of course).

You may also consider or be required to cover the full gap between what you would owe on your loan or lease if your car was declared your vehicle a total loss. This is what Gap Coverage does. If you are required to have it, your insurer will probably let you know. Though, it is best to be on your toes and learn how to make a full plan for yourself.

Know Your Limits

Understanding what your policy says is important. It is even more important to understand that full coverage auto insurance does not exist, because every person's situation (and the state in which they live) all have different requirements and personal needs. That said, unless you buy $1 million worth of coverage for each item on your auto insurance (if your carrier even offers that for every line), then you do not have a sky's the limit policy.

More likely than not, you cannot predict exactly when you will be in an accident, how much it will cost, how litigious the other parties are, etc. That is where the difficulty of choosing a policy and rates comes into play. And, that is why it is important to find a knowledgeable, trustworthy and experienced auto insurance carrier, who can offer you exactly what feels like a full coverage auto insurance policy to you.

Full coverage auto insurance is a misnomer, that is commonly used by the public (not the auto insurers) to refer to everything you need. It is not limitless, not going to just take care of everything if you are in an accident. Instead, it is good to define your specific needs, and build your own definition of a full plan for you and your family that works for you.