When considering which insurance policy to purchase, make sure you are protected with a full coverage plan that will cover you in nearly every situation. But you should note that full coverage actually refers to the different options that make up your personal coverage plan. Normally, a policy will include liability, comprehensive and collision coverage and be called “full coverage.” However, there are other options that you can include to further extend protection. That is why it's important to understand the various aspects of coverage you can select from.
Liability Coverage
In most states, liability coverage is a legal requirement and will only cover the minimum amount. If you get into an accident and you are at fault, liability insurance covers the injuries or damages to another person or their property. However, you will not have the full protection you may need if you were involved in a more serious accident. You would then be responsible for any of the excess costs that were not covered by your policy.
Comprehensive Coverage
If anything unexpected happens to your vehicle other than a collision, comprehensive coverage will cover your vehicle and it’s optional in addition to liability coverage. Comprehensive insurance provides protection against things like weather events, natural disasters or damage caused by falling objects, such as rocks and tree branches. It may also pay for damages resulting from fires, broken windshield, and vandalism and may even cover you if your vehicle is stolen. Without comprehensive coverage, full coverage is not possible.
Collision Coverage
Collision coverage is very important and will help pay for any damages if you are involved in an accident due to a collision. This coverage only covers your vehicle and gives you the broadest protection and is always included in a full coverage policy. It guarantees your vehicle will be covered regardless of what caused the damage.
Optional coverage to further build your full coverage plan can include: • Uninsured and underinsured motorist coverage • Medical payments coverage • Personal injury protection (only in some states) • Roadside assistance • New vehicle replacement coverage • Rental car reimbursement
Knowing that full coverage means different things to different people, understanding the various types of coverage offered will help you explore your options as you create your own full coverage policy for your specific needs and budget.
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