What is full insurance coverage?


When we go to the literal meaning of full coverage, it simply does not exist. There are many types of car insurance coverage, but even though you exhaust all these coverage, you and your car would still not be fully covered. Actually, full insurance coverage is commonly referred to as physical damage coverage. In fact, full insurance coverage is used by lien holders to mean that your car has to be fully covered by physical coverage rather that choosing to get the minimum coverage required by a state.

Physical coverage does not only mean coverage to physical damage to you or to your automobile. This type of coverage consists of two types of coverage. The first type is collision coverage, while the second type is comprehensive coverage.

Collision coverage covers damages made to autos either because of collision, or by upset. Whether your automobile collides with another automobile, or it crashes to objects such as trees, rocks or posts, it is all covered by the said insurance coverage. This type of coverage is especially very useful when you are always on the road (maybe because of the demands of your job), or when you live in the suburbs and have to travel significant miles from work to home, or even when you frequent the expressway.

Meanwhile, comprehensive coverage refers to damage to your vehicle not only limited to collisions, but also include other kinds of damages such as theft, glass breakage or vandalism. This proves to be useful when you live in a busy metropolis, or probably in places where street gangs are known to frequent. It would be very comfortable and convenient for you when you know that a certain insurance policy would even cover these damages.

When we see car financing or leasing, most probably, physical coverage is required. Most insurance companies offer this type of coverage. Then why is it called full coverage? Simply put, states have required minimum coverage, depending on existing laws and legislations. It is called full coverage due to the fact that physical coverage is not only limited to minimum state requirements, but covers both collision and comprehensive ones. For some, full coverage is actually encouraged because it offers convenience and security, but excess costs due to too much coverage must also be put into consideration.

Given all of these considerations, it is now up for you to decide which policy and plan you are going to take. Look at your lifestyle and personal preferences and tailor fit the best coverage.