4 Full Coverage Auto Insurance Questions Answered

4 Full Coverage Auto Insurance Questions Answered

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The term full coverage auto insurance is often misused by people everywhere. You may have heard this term from family members, friends or even people in the insurance industry that you have had contact with. However, actual full coverage car insurance does not technically exist. But, even though it may not exist, you need to know what people mean when they are using the phrase "full coverage auto insurance".

An insurance trainer once permanently placed the phrase "there's no such thing as full coverage insurance" over and over again in my head. Still, even though I knew this information, I discovered that this term was being said by consumers everywhere.

The information that you are about to read is to help answer the questions you may have about what full coverage auto insurance is not, what it is, if you really need it and how do you use it.

Answer One: What "Full Coverage" Is Not

Full coverage auto insurance implies that it is coverage for anything and everything that can happen to your vehicle without additional money paid out by you. There is no insurance coverage in the world that meets this definition.

First, you have a deductible that you have to pay if there is damage to your vehicle. Your deductible could be $1000 or it could be as low as $50. No matter the amount of the deductible, this is money that you have to pay out of your own funds to fix damages to your vehicle.

Full coverage auto insurance also does not cover damages to your vehicle if you destroy your vehicle on purpose. This actually extends to all insurance coverage that is offered by any company. If you cause damage intentionally, your insurance coverage is null and void.

So, if you are having the wonderful scheme of rolling your old junker off the side of a cliff for the insurance money, it is guaranteed to fail. The only thing you may be guaranteed is fines and possibly some jail time.

Answer Two: What "Full Coverage" Is

Full coverage auto insurance is technically just when you have both liability insurance coverage and also insurance coverage for your own vehicle. The coverage for the damages that may be caused to your vehicle are known as comprehensive and collision coverage.

Collision coverage is for any damages that happen to your vehicle in the situation that you cause an accident. In other words, if you were to run a stop sign and hit someone, the collision coverage is what pays for that damaged hood on your vehicle (after you pay your deductible).

The comprehensive coverage is for other types of damages such as animal related damages. For something to be covered under comprehensive coverage, the damages to your vehicle can't be any fault of yours.

As an example, if you get a broken windshield from a rock that hits your vehicle when you are driving your comprehensive coverage is what would get the windshield repaired.

Answer Three: Is "Full Coverage" Needed

No, full coverage auto insurance is not required to be in place on your vehicle to be able to drive. Only liability insurance is required by the states so that you can drive.

Full coverage is only ever required if you have a car loan. Then the comprehensive and collision coverage is required to be on your vehicle by the corporation that holds your car loan. They do this to protect their investment as your vehicle is the collateral that is put up for your loan.

Is full coverage needed? In most cases the answer is, yes.

If you can't afford to repair your vehicle in the case of an accident yourself then you need to have the 'full coverage" so your vehicle can be fixed.

Answer Four: How You Use "Full Coverage"

Even if full coverage auto insurance is on your policy, one hopes that it will never have to be used. If you find yourself with damages to your vehicle from an accident that you have caused or from something like a tree falling, you need to contact your insurance company.

Call them from the location of the accident or visit your agent's office and report what has happened to your vehicle. Contacting your insurance company is the first step in how you use your full coverage auto insurance. From the initial step your insurance company will help walk you through the process.

About the Author:
Todd Clay was an agent for the largest insurance company in the US. He now researches and blogs about full coverage auto insurance with the consumer in mind. Check out the latest reviews, rates by state, or grab a few auto insurance quotes in 5 minutes at: www.CarInsuranceGuidebook.com



Article Originally Published On: http://www.articlesnatch.com


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