Full coverage car insurance is a term most commonly used to refer to both collision and comprehensive auto insurance coverage. When insurance agents say collision, they refer to coverage that will take care of expenses and damages a vehicle incurs because of an accident. On the other hand, comprehensive takes care of damages incurred by other incidents aside from road accidents. Car theft, fire, weather impacts, and others are all taken care of by comprehensive policies. To simply say it, full coverage car insurance combines the best of both worlds.
Although there are some experts who argue that “full coverage” does not really exist, many insurance companies still advertise using the words full coverage. Some say that the best these agencies can do is to provide physical damage coverage and policies required by state law. According to some auto insurance experts, no one really gets full insurance coverage, simply because there are certain car owners who do not need extensive levels of protection. Some even settle for minimum state requirements and ignore other policies.
Instead of using the term full coverage car insurance, some insurance agents use the term “physical damage coverage” when referring to both comprehensive and collision coverage. The word full coverage implies getting all policies available, and since no one does that, saying “physical damage coverage” is more appropriate.
Moreover, depending on whether a vehicle is leased or not, certain levels of policies are required. In certain states, a leased vehicle requires more protection compared to a vehicle that is financed or fully paid for.
Under full coverage car insurance or physical damage coverage, here are some forms of policies:
- Liability coverage – this takes care of bodily injury or property damage that an insured driver is held accountable for.
- Uninsured/underinsured Motorist coverage – commonly referred to as UM/UIM, this policy takes care of damages if the guilty party (the one who caused the accident) does not have auto insurance or does not have adequate insurance protection. There are two classifications of this coverage as to what they cover – bodily injury and property damage.
- First party benefits, Medical – this covers necessary medical expenses incurred by an insured driver and his passengers.
- Optional basic economic loss – this covers for lost wages if the passengers or the insured driver is unable to go to work because of injuries caused by a car accident.
A responsible driver is not only a person who drives cautiously and abides traffic laws. A responsible driver must also know about car insurance, coverage levels, and their definitions.