Full Coverage Auto Insurance

Most people are confused when they hear the term full coverage auto insurance thrown around by either their auto insurance company, or some other authoritative resource. It really isn’t something that should be that confusing, as full coverage auto insurance has a pretty standard meaning when spoken about in relation to the amount of coverage available for an individual policy.

Full Coverage Auto Insurance Defined

Essentially, full coverage auto insurance is an auto insurance policy that covers all of the damages incurred to the policy-holder’s vehicle during an accident. It is important to note that only damages that have been sustained during an accident will be covered by such a policy. Minor damages caused by the policy-holder are not covered by a full coverage auto insurance policy. Examples of such instances include if you ever get a flat tire, or if you somehow require a part for you engine. If things like this happen to your vehicle, and are not the result of an accident, then you are out of luck in terms of reparations made by your full coverage auto insurance policy.


Knowing When to Buy

Some people are told by the company that has financed their automobile that they must purchase a full coverage auto insurance policy in order to get the loan. This has been common practice by many banks for some time, and it is something they do so that they will be covered in case something ever happens to the car they are financing. There are several kinds of auto insurance coverage. The minimal amount of coverage that is required by most states does not cover damages done to the policy-holder’s vehicle if he or she is the responsible party during that accident. Auto finance companies and banks know this, and to make sure that they are covered when there are damages to the car they are financing, they stress that the individual financing the vehicle must purchase a “full coverage” policy. This will guarantee they will get their money regardless if they car is damaged beyond repair.

It is important to note that in order to get a full coverage policy, you must ask your own auto insurance company specifically what they offer, as the typical policy does not cover damages that need to be repaired to your vehicle. The standard kinds of coverage you will be required to purchase only cover the damages you cause someone else during an accident, and do not cover the damages on your own vehicle. Don’t be fooled into thinking that just because you have what is called public liability and property protection, or PLPD coverage you will have the necessary coverage to make repairs to your vehicle. This kind of coverage is the kind of standard coverage most people have, and it does not typically pay for damages to your vehicle, and is thus different from a full coverage policy.



Making Decisions

It is important to first decide whether you want to pay more for the additional coverage a full coverage auto insurance policy provides. When you do understand what you are buying, and you have come to the decision that you want to go ahead with the purchase, it is now time to contact your auto insurance company to see what kind of policies they have available for you. When you are willing to pay for this additional coverage, they will be more than happy to work with you, and understand that most companies can make available all sorts of arrangements when it comes the various kinds of coverage you are able to purchase.

In the end, just make sure you go through all the terms and details of your policy, as it is vital you fully understand what you are buying before you hit the road. A full coverage auto insurance policy is a good thing as long as you can grasp what it is you are really buying, and you have a situation that appropriately warrants such a purchase.