What is Car Insurance Full Coverage?


The term Full Coverage is actually vague because it varies to every party using it. Lenders, borrowers and insurers have all their different meanings of the Full Coverage term in the car insurance world. Contrary to many notions, the term Full Coverage does not actually exist. When these different parties mention Full Coverage, they actually sometimes mean that there is an inclusion of the physical damage with liability damage in the car insurance coverage.

In some cases, there are those who don’t like to get a full coverage insurance that they take the liability damage only coverage. This liability only policy is composed of two sub-categories which include the property damage liability and the bodily injury liability. The property damage liability would take care of the damages to the other party’s home, vehicle or physical object which the driver hit. This only means that the liability only policy would not cover damages for the driver himself. Liability policy covers the harm done to others but not essentially to the driver or to his car.

On the other hand, the physical damage coverage will pay for the damages to the driver’s vehicle in cases of collision. In this type of coverage, there are two concepts to be defined namely collision and comprehensive. The term collision refers top the payment to either replace or repair a vehicle or an object after collision while comprehension is the payment for the replacement or repair of the injured vehicle even beyond the act of colliding. Events covered by the comprehension include fire, theft, hail damage and vandalism.

The Full Coverage is required by lien holders who retain the title to the vehicle once a car is financed or leased. Every act of acquiring for car financing or lease, you are required to show that you are a full coverage policy holder. More often than not, lien holders require more than the liability-only policy which means additional physical damage coverage.

Some vehicle owners would like also to include insurance for their passengers which is called the PIP or the personal injury protection. You could also opt for rental coverage which refers to the payment for rented vehicle per day while your car is under repair.

There are so many more insurance policies which the driver could opt for. Full coverage means combinations of different policies depending on the preference of the vehicle-owner. Accidents happen and it is a must for anyone to secure themselves in these instances.