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Why Full Coverage Car Insurance is Important


Auto insurance is supposed to give car owners peace of mind whenever they are behind the wheel. Americans pay thousands of dollars each year to make sure that they are protected from any eventualities. In a way, car insurance is a form of investment that an individual never want to see producing returns soon. No one in their right mind would want to pay for insurance and get in an accident just to make use of what they have paid for.

Fortunately, most states require some sort of insurance from motorists. However, they would often require only minimum insurance amounts from car owners. While the minimal coverage can meet state requirements, it is usually never enough to let policyholders sleep soundly at night.

With rising medical costs, as well as increasingly expensive replacement parts and repair costs, having the minimal insurance requirement is never enough. Because of this, getting full coverage car insurance is often the best way to avoid any legal or financial problems after an accident.

Full coverage, in a nutshell, is exactly what it sounds like. Instead of the minimum protection required by state insurance law, policyholders are entitled to receive the maximum protection possible from insurance companies. Of course, the term “full coverage” can be interpreted in many ways. However, most experts agree that full coverage essentially means sufficient protection and financial support for a policyholder in the even on an accident.

One subtype of full coverage car insurance is the bodily injury liability coverage. This particular option protects the policyholder from any legal obligations or complications should the accident be their fault. Any physical harm will be dealt with accordingly, with the insurer shouldering the medical expenses incurred during the treatment and hospitalization of other parties involved in the accident. This coverage often covers ambulance fees, emergency room expenses, and even long-term treatment or recuperation. In the event of fatalities, this full coverage option can even provide for funeral expenses.

Another example of full coverage car insurance is collision coverage. If a vehicle is totaled or is in need of extensive repairs, then this option will take care of the expenses. Insurers even offer a modified version of this coverage that helps car owners settle outstanding loans and balances if the damaged or totaled car has been not fully paid yet.

Finally, one of the most useful of the full coverage car insurance types is underinsured or uninsured driver coverage. This specific option will protect policyholders if they get in an accident with uninsured or underinsured motorists.