Congratulations, you’ve bought your first car! But, before you take it out on the streets, you need to purchase proper protection. Many insurance companies in the market offer plans for your vehicle. In this regard, many owners wonder, ‘what is full coverage auto insurance?’ In this article, we will tell you how this policy works and how to get it.
The first thing that you need to understand, is that there is not a policy called “full coverage auto insurance.” This term actually refers to a combination of coverages that will protect your car. In other words, you can’t find a policy that covers your vehicle of every possible peril. However, choosing the right protection will prevent drowning in debt in case something happens.
Plus, keep in mind that you are not required to buy full coverage auto insurance. In fact, some policies are required by law, while others are optional. To find out more about the minimum protection, we recommend you ask your insurance agent.
Now, let’s take a look at full coverage auto insurance and which coverage it includes.
What is full coverage auto insurance?
As we explained above, full coverage auto insurance is not a policy or its own but rather a package deal. This means you will have collision, comprehensive and liability coverage. In some cases, drivers also decide to include medical payments and personal injury protection. You can also get other policies such as rental reimbursement or uninsured motorist.
Remember that with this combination of policies, you will get the best protection. But that doesn’t mean you won’t have to pay the deductible. As a reminder, the deductible of your auto insurance policy is the amount you will have to pay out of your pocket before the company takes care of your claim. The good news is that you can pick the amount of deductible you can afford.
Further, when it comes to building up your full coverage package, you’ll need to have a minimum of liability coverage. For the collision and comprehensive policies, you have the possibility of choosing the amount.
What is the cost of full coverage insurance?
Since there is not a “full coverage” insurance policy, the value of your premium will depend on what coverages you choose. Plus, how much protection you want from each one. That’s why the more policies you purchase, the more expensive your insurance would be. However, this is not the only factor that influences the value of your policy.
Here are some other elements you need to consider.
- Age: If you are young, insurance companies will consider you as an inexperienced driver. This means your premium will be higher.
- Driving record: Driving safely and not accumulating convictions is very important since this can help you get cheap full coverage auto insurance.
- Deductible: Choosing a higher deductible will reduce the amount of insurance you’ll have to pay every month.
- Vehicle: Having anti-theft devices is one of the factors that can give you access to low-cost premiums. Also, keep in mind that vintage and high-end vehicles are more expensive to insure.
We know that considering all these factors, a big package for your car might sound expensive. However, companies such as Surex offer cheap full coverage auto insurance for all drivers.
Full Coverage Insurance: What it includes
Even though above, we mentioned the different protections included in a “full coverage”. In this section, we are going to explain each one.
Liability Coverage
This is one of the policies that is required by law which means it is an unavoidable cost. Liability coverage is meant to pay for all the damages of an accident you caused. There are two types of liability coverage. Bodily injured liability, is the part of the policy that will pay for the medical expenses of somebody else. Property damage liability will cover the value of the property you damaged (the other vehicle).
For this policy, you’ll have three types of limits:
- Bodily injury per person $250,000
- Bodily injury per accident $500,000
- Property damage $100,000
For bodily injury per person and property damage, you have the option of going over the limit.
Collision Coverage
This is the policy that takes care of your vehicle. That means that in case your car gets damaged due to an accident or an object, the insurance company will pay for all the repairs. If necessary, they will give you the money to replace your property.
This policy serves as a safeguard for your vehicle, offering protection under a variety of circumstances. In the event that your car is damaged, whether from an accident or a collision with an object, your insurance company steps in to cover the repair costs. This includes scenarios common in many areas and auto insurance in Ottawa covers it too, and their policies are tailored to address the unique challenges drivers face. If the damage is extensive enough to render repairs impractical, the policy ensures you receive the necessary funds to replace your vehicle, providing a comprehensive safety net for your automotive investment.
Comprehensive Coverage
In case your car is stolen or is damaged by vandalism or an animal, comprehensive coverage will protect you. This policy will give you enough funds to repair or replace your vehicle.
Collision and comprehensive coverage are optional if you’ve already paid off your car. However, if the vehicle is on a lease, or you still owe money from the auto loan, both of these policies will be required. Don’t forget that each of them will have different deductibles.
Medical Payments Coverage
Even though this protection is optional depending on where you live, you should have it because it will take care of all the medical expenses regarding who is at fault. This policy only covers you and your passengers.
Personal Injury Coverage
This policy works similarly to the medical expenses coverage. However, the great thing about this one is that it can cover other expenses while you are in the hospital. For instance, child care services in case you need someone to take care of your children.
Uninsured Motorist
Even when all drivers are required to purchase minimum coverage for their auto insurance, there are some cases in which some might not have proper protection. In case, you get into an accident with an uninsured vehicle, this policy will help you pay for all the damages.
Rental Reimbursement
In case your car needs repairs after an accident, with this coverage you can pay for a rental car. Usually, this coverage has a limit per day and numbers of days. Make sure you check this before purchasing.
Getting full coverage auto insurance is the best way to protect yourself financially in case something happens. Above we have explained all the policies you can choose from, but remember, for complete protection you at least need liability, collision and comprehensive coverage. For more information, you can visit here.
