What is Full Coverage Car Insurance?
Have you been wondering what kind of car insurance you need? If so, you may have heard that you need full coverage car insurance. What is full coverage, and how does it work?
The Elements of Full Coverage Car Insurance
A full coverage policy typically consists of several elements. First, there is liability coverage, which pays for the medical expenses and property damage of another driver, and his or her passengers, if you cause a vehcile accident. Liability coverage is required in most states – drivers who do not carry this coverage may end up paying fines, losing their licenses, or even serving jail time. Full coverage car insurance also includes comprehensive and collision coverage, which pays for your vehicle and personal property if an accident occurs, regardless of whether the accident was your fault. It also covers vandalism, theft, and other occurrences.
How Does Full Coverage Work?
The liability portion of full coverage car insurance protects you against being sued for damages you cause to other drivers, passengers, and pedestrians. Without liability coverage, you could be legally responsible for the medical bills and property damage of others. The comprehensive and collision portions of your policy protect you against financial loss by paying for your car, as well as personal property carried in the vehicle at the time of the accident.
Do You Need Full Coverage?
If you are making loan or lease payments on your car, your lender will likely require you to carry full coverage car insurance. Even if your car is paid off, you will want to carry full coverage if your car is relatively new, and has a higher market value. In general, if you could not afford to pay for the repair or replacement of your car if you were involved in an accident, it is a good idea to purchase a full coverage package.
Related Posts:
- What is the Best Car Insurance?
- What is Automobile Liability Insurance?
- What is the Cheapest Car Insurance?
- Car Accident on Black Ice – What Does My Insurance Cover?
- What Are Some Tips For Purchasing Full Coverage Automobile Insurance?