Every person has his own idea of what a full auto insurance coverage is. We become idealistic especially when we know that our life and our investment are involved. We are under the impression that when we say “full coverage” it will take care of everything – damages to your car, other properties that you crashed with and medical expenses regardless of who is at fault. Well, auto insurance policies do not work that way. These companies also protect their investments because it is a business after all. They do not want to spend on someone who is reckless and will take their money away because of numerous accidents. One way of protecting their assets is not to cover all costs in an accident. They set certain conditions on when they will be shouldering the expenses and this is based on the plan that you chose.
It may not be good news for idealistic people like us but we can come close. We just have to know how close we can get. Here are the items in a car insurance policy that you need to include if you want to have extensive “full coverage” car insurance:
- Liability Coverage – the company takes care of the cost for all properties engaged in the accident. This includes other objects, facilities, your own vehicle and the other’s if applicable if you are the one responsible for the crash.
- Personal Injury/Medical Insurance – basically cover medical expenses depending on who is accountable for the collision. Victims will automatically have their expenses paid as well as people who were in the liable driver’s car who were injured. The driver who is to blame on the other hand will pay some dues because of recklessness.
- Uninsured or Underinsured Motorist – this will take care of medical expenses if you were engaged in an accident where the person at fault has no car insurance. This will also cover legal expenses if ever you want to sue that person.
- Collision Coverage – this will cover the expenses when you collide into other objects and other car/s. This is regardless of who is at fault.
- Comprehensive Coverage – this will cover damages caused by weather conditions.
- Loan/Lease payoff Coverage – will cover the difference when you paid your car with a loan or a lease.
- Road Assistance – costs for having calling road assistance.
When you have all of these in your policy, auto insurance companies can say that this is very extensive car coverage and is considered as “full coverage”. This comes at a price though. The more the items are, the higher your premium is. So if you think that you can afford some and not the whole lot, choose the ones that you can really use.
