The Truth About “Full Coverage” Auto Insurance
“Full coverage” sounds impressive. It implies that your auto insurance covers you no matter what.
In reality, “full coverage” is largely a marketing term designed to grab your attention. It’s similar to the phrase “all-natural” on food packaging, which is intended to make you think the item is healthy.
Just like food in a box or can is almost never 100% natural, there’s no single auto insurance policy that covers everything. Even full-coverage auto insurance has coverage limits, deductibles, and risks that aren’t covered.
In fact, two drivers that have full coverage could very well have very different limits, deductibles, and gaps in coverage.
Let’s dispel the myths of full coverage so you know what to look for when shopping for auto insurance.
What “Full Coverage” Typically Means
When an insurance company offers you “full coverage,” they’re most likely offering a bundle with three separate policies:
Liability coverage: This is the only part required by law in most states. It covers injuries or property damage you cause to others.
Collision coverage: This covers the repair or replacement of your vehicle if you hit another vehicle or an object (rail, pole, wall, etc.), regardless of who is at fault.
Comprehensive coverage: This covers non-collision events, like theft, vandalism, fire, storm damage, or hitting an animal.
Common Gaps in “Full Coverage” Auto Insurance
That bundle sounds like it covers just about everything, right? Actually, there are high-cost risks that are usually not covered by the average auto insurance policy labeled as “full coverage.”
- What about medical expenses? You may have to add personal injury protection (PIP) or medical payments coverage to recover money for medical bills and lost wages.
- What if the other driver is uninsured or underinsured? You may need uninsured motorist (UM/UIM) coverage to protect yourself.
- What if your car is leased or financed? If your vehicle is totaled, standard coverage only covers the actual cash value (ACV), or the depreciated market value, not what you owe. You’ll need gap insurance to cover the difference between what you owe and what the vehicle is worth.
- What about the extras that most people assume are included? Roadside assistance, rental car costs, auto glass, etc. are almost always optional add-ons.
When it comes right down to it, “full coverage” rings hollow. Confirm exactly what’s covered and what’s not, the limits of your coverage, and deductible amounts so you know how well you’re protected, and what your out-of-pocket responsibilities will be, if you get into an accident.
Stanton Insurance Group will provide you with details and facts, not misleading marketing claims. To get the truth, contact us today and schedule an appointment!
