When you buy car insurance, there’s a good chance you want everything covered. Is buying full coverage the answer you’re looking for? Keep reading to find out.
What is a Full Coverage Car Insurance Policy?
There is no such thing as a full coverage car insurance policy. What full coverage really means is that you’ve opted to buy all of the different coverage options. These include the following:
- Liability coverage that pays other people when you damage their property or injure them.
- Collision coverage that pays to repair or replace your car when it’s damaged in an accident.
- Other than collision coverage that pays to repair or replace your car for non-accident disasters like a tree falling on it while it’s parked or theft. This coverage is often called comprehensive coverage.
- Uninsured and underinsured motorist coverage that pays you what someone else’s insurance would have paid if they didn’t buy insurance or carry high enough limits. Some states may also have a separate uninsured motorist property damage coverage instead of having it be built-in to your other coverages.
What are the Limits on a Full Coverage Car Insurance Policy?
When you purchase “full coverage” by opting to buy all of the available coverages, it’s important to keep in mind the policy limits. Each specific coverage often has its own limits and sometimes a separate and/or varying deductible. If your covered claim under one type of coverage exceeds the limit for that coverage, you can’t use the limit from another type of coverage. You simply get the maximum amount set by the limit for that coverage.
To many people, buying full coverage also means getting the highest limits possible for each type of coverage. Keep in mind that both the limits you choose and the deductible you select directly impact your premiums.
Does Full Coverage Car Insurance Cover Everything?
Even buying every possible coverage doesn’t mean that every possible claim you may have will be covered. That will come down to the language of your specific policy. You’ll need to read carefully for any exclusions as well as what you need to do after an incident to allow your coverage to kick in.
Do You Need the Highest Limits You Can Buy?
You may have other insurance options available that may supplement your car insurance. The most common are umbrella liability policies, that would kick in for high-dollar liability claims, as well as relying on personal health insurance coverage. You would need to see how all of your policies fit together in terms of what they cover, deductibles, and if they require you to carry a minimum amount of a different type of insurance. For example, you often can’t get an umbrella policy without high car insurance liability limits, while PIP or medical payments coverage might save you from having to pay your health insurance deductible out of pocket.
Skeele Insurance Agency can help you review your total insurance situation and help you get “full coverage” in a cost-efficient manner. We proudly serve upstate New York including DeRuyter, Chittenango, Cazenovia, Manlius, Moravia, and Waterville. Contact us now to learn more or request a quote.