“Full Coverage”: The Holy Trinity of Auto Insurance

What does full coverage mean?

Insurance agents use the term “Full Coverage” all the time. It seems like their saying it’s the ultimate in auto insurance coverage.  But what does it actually mean?

The definition of Full Coverage is (drum roll please):

………. Well there actually isn’t a definition for Full Coverage because it’s a slang term.
That’s right just like nah, cuz, whatup, sheesh, and yolo, Full Coverage serves as a placeholder for something that takes a bit longer to explain. However, unlike your teenage kid, we are ready to explain the exact meaning of the slang we use.
So here’s a quick answer from the experts at Shine Insurance:

Full Coverage is a term for an insurance policy that includes all three major types of coverage that auto insurance policies offer.  Those three parts are:

Liability Coverage

Coverage for injuries to other people and damage to their property.

Say you’re toddler is screaming in the back seat as your rolling down the road.  You turn, start shaking those plastic jiggly keys and BOOM, you hit the car in front of you.  Suddenly, your Liability Coverage became one of the most important parts of your financial world.  That coverage will determine how much the insurance company will pay for damage you did to the other person’s car and any injuries that the people in that car may have sustained.

 

Uninsured or Underinsured Motorist Coverage

A back up liability policy for your injuries, your passengers injuries, and damage to your car if someone hits you but they don’t have insurance or they don’t have enough insurance.

Ok, so the fact is that about 25% of people drive with no insurance or with the tiniest amount they can get away with.  If you get hit by one of the scoundrels, the “At Fault” driver’s insurance isn’t there.  So your insurance policy will take it’s place and pay for your injuries and the damage to your car.  And yes, your insurance company will chase the uninsured driver to get the money.

 

Comprehensive & Collision

Coverage for damage to your car. There are two parts:

Collision

Let’s go back up to the toddler example.  You rear ended someone.  We’ve already explained coverage for their injuries and damage to their car.  But what about damage to your car?  Well that’s where Collision comes in.  This covers your car.

Comprehensive (Other than Collision)

Comprehensive is still coverage for your car but for different situations.  Some examples are garage fires, tree limbs falling, a deer running in from of you.  Basically, all of the weird accidents are covered under Comprehensive.

Do you have full coverage?

It’s time to get out your policy.  Check out your liability coverage, your un/under insured motorist coverage, and finally your Comprehensive and collision coverage.  If you have all three you’ve got full coverage.

Want more info?

Give us a buzz at 812-679-8779
Our experts can break it all down for you.