An Overview of Full Coverage Auto Insurance

You can add multiple types of coverage to your auto insurance policy. Full coverage is often recommended because it protects you in various situations. Here is a look at the importance of full coverage auto insurance.

A full coverage auto insurance policy includes bodily injury, uninsured motorist, PIP, property damage, collision, and comprehensive coverage. You are legally required to carry a few of those coverages. Full coverage provides you with significant financial protection if a disaster occurs.

  • Liability Coverage

    Liability insurance covers you if you are responsible for any property damage or injuries. You are legally required to carry liability insurance to operate your vehicle. There are two main types of liability coverage, property damage, and bodily injury.

    Property damage insurance provides financial protection to you if your vehicle damages another vehicle or object. Bodily injury coverage protects you if the accident causes damage to the other driver or another person. The coverage protects you if the impacted party files a claim. Most states legally require you to carry minimum liability coverage of between $10,000 and $40,000.

  • First-Party Benefits

    • Personal Injury Protection

      PIP covers any injuries that you sustain in an accident. PIP helps cover your medical expenses. PIP benefits you because it pays out regardless of whether you are at fault or not. PIP is similar to health insurance and can help supplement that policy. In some states, you are legally required to carry PIP coverage.

      That often makes your auto insurance policy expensive. MedPay is an alternative form of coverage in states where PIP may be too expensive.

    • Collision/Comprehensive

      Collision insurance covers any damage to your vehicle as a result of an accident. The repairs are covered regardless of who was at fault for the accident. Collision coverage is often the most expensive part of your policy, especially if you have a high-end vehicle. You can lessen your collision insurance premium by choosing a higher deductible.

      Comprehensive coverage covers any damage to your vehicle caused by unique factors. You are covered if your vehicle is vandalized or damaged due to severe weather. Comprehensive coverage costs a little less than collision because comprehensive cases are rarer.

  • Total Cost of Coverage

    Full coverage auto insurance plans are usually more expensive than basic policies. There are more benefits included in a full coverage policy. In some states, full coverage may cost double the amount of a basic policy. Typically, full coverage insurance costs about $2,146 per annum in Houston, Texas.

  • The Importance of Carrying a Full Coverage Policy

    If you are involved in an accident, things can become complicated if you only have minimum coverage. The claims process may become lengthy, as you may have to deal with another insurer. If you have to use another insurance company, your claim may not be approved. If you file with another insurer, you will also have to establish who the “at fault” driver is.

    Often, the process can be very difficult. You may have to settle for an amount less than what you anticipated. Relying on someone else’s insurance to cover you if you are involved in an accident is risky. It may take a while before you actually receive a payout if you are using another insurer.

Full coverage auto insurance is beneficial because you have financial security if you are involved in a collision or a hurricane moves through the area and damages your car. If you have any questions about your policy, the experts here at J. Archer Insurance Group will guide you through the process so you can get the coverage you need.

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