Understanding “Full Coverage” Auto Insurance

Most states require liability insurance on automobiles and other vehicles registered for highway or “on road” use. Financial institutions usually require Comprehensive and Collision insurance to protect their interest in a vehicle. These three coverages are what many consider “full coverage.” However, in the insurance industry, “full coverage” means a whole lot more.

In this post we’ll discuss what “full coverage” auto insurance entails.

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Basic Liability (15/30/25) – Consists of Bodily Injury & Property Damage: State minimum limits is $15,000 (per person) / $30,000 (per accident) bodily injury and $25,000 property damage paid to the other driver(s) in an at fault accident.

Collision: This coverage pays to repair or replace your vehicle in the instance you are at fault in an accident or in an incident with an uninsured motorist. Usually has a deductible.

Comprehensive: Covers instances involving animals, flood, theft and other “non-collision” types of damages to your vehicle.

Comp and Collision are what a financial institution requires along with the state mandated liability coverage.

Un/Under-Insured Motorist (UMBI): Even though state laws require every registered vehicle and licensed driver have basic liability, (and despite our "No Play, No Pay" law), statistics show that 12.6% of them don’t. Un/Under-Insured Motorist coverage has the same limits of bodily injury protection ($15,000 per person / $30,000 per accident) and covers YOU and your passengers in the instance of an accident with an uninsured motorist or someone whose policy does not adequately cover medical costs resulting from the accident. If you do not have Comp and/or Collision, you can purchase UM Property Damage (UMPD) coverage (again equal to basic liability coverage of $25,000) to help repair or replace your vehicle in the above mentioned scenario.

Medical Payments: Pays the monetary amount chosen to you and/or your passengers regardless of who is at fault in an incident. Usually purchased in increments between $1000 - $5000 (sometimes up to $25,000) and is very reasonable for the peace of mind it provides.

Roadside Assistance: Pays unexpected expenses such as running out of gas, locking keys in car, roadside tire repair, towing, etc. Rates vary per company but usually run around $1 a month. This coverage is another very reasonable way to have peace of mind, especially for those who are on the road a lot or at night.

Rental Reimbursement: Allows you to rent a car in the instance your vehicle is laid up due to a covered loss. Usually pays a set dollar amount for a certain number of days. EX: $30 a day for 30 days or up to $1200, etc.

These are the basic components of a “full coverage” auto policy. Each company is different and may offer something else. If you’re not sure what your auto policy covers, give us a call and let us review it for you.

For more information check out our Auto FAQ page.

Until next time, take care and remember, insurance is a valuable tool for peace of mind.
Tommy Curtis and Staff