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Full Coverage Car Insurance – The Myth Debunked


Getting your car insured should be the second natural thing to do after paying for it. There are two reasons for this – the first is that you will never know when something bad will happen on the road, and second is that the government requires it. Yes, the government already stepped in to make sure that you get yourself insured.

Now, the next question would be what type of insurance policy you would get. A lot of people get confused over this and end up getting the wrong policy, especially from a provider who wants nothing more than to reach his quota.

Your auto dealer will probably recommend that you get yourself a full coverage car insurance policy. To you it sounds so reassuring. Imagine a type of coverage that answers for every single thing that happens to your vehicle. However, sadly, this is a common misconception. This is why a lot of people get confused over what type of policy to get – insurance terms are often misleading and technical.

Full coverage car insurance does not really mean that a company will pay you for anything that may happen to your vehicle. In fact, this coverage is not as “full” as you thought it was. Usually, insurers limit this type of indemnity arrangement to only physical damage liability. In other words, you only get paid for any visible damage on an automobile. Why do they call it that way if it really means something else? Full coverage car insurance is actually a combination of different types of insurance policies to the effect that every single aspect of your ride is insured. Sort of a part of a machine, different policies combine to form what we know as full coverage car insurance.

What policies are taken to form this coverage? What are usually sold as a package are collision indemnity contracts and comprehensive policies. Collision contracts deal with any damage that may be dealt to your vehicle by reason of collisions with another vehicle or with a stationary object. In other words, you bump your car, an insurer pays. Alternatively, a comprehensive policy will answer for damage to an automobile by reason of vandalism, fortuitous events, theft and robbery and all other causes.

When you have procured this contract, the company will indemnify you even for expenses by reason of towing, damages caused by uninsured drivers, medical and hospitalization expenses in case of serious vehicular accidents and other expenses that may come about from a road mishap. All these, however, are subject to a limit – that is, you only receive an amount in proportion to the premiums you have paid.