Is your Car Fully Insured?

Cars are expensive and subject to damage or loss because of factors beyond your control. Ideally, you should have full coverage car insurance to ensure that you have the protection you need in case of vehicle damage, theft, or destruction. However, there is no single definition of what ‘full coverage’ is.

Every insurance company interprets it differently; when you buy car insurance, you will not find a ‘full coverage’ box you can tick. To ensure that your car is covered against any eventuality, these are the major forms of protection you need, typically treated as being part of ‘full coverage’:

Image Courtesy: Pexels

State requirements

Each state has specific minimum coverage requirements that must be met before a vehicle can be taken on public roads. They usually include bodily liability and property damage.

Comprehensive coverage

A collision is not the only way a car can be damaged. Storm damage, vandalism, hitting an animal and theft are just a few other things that could happen. Comprehensive coverage will cover all physical damage to the car caused by anything other than a collision.

Collision coverage

This covers any damage due to accident or collision, regardless of what caused the damage. This can be purchased only if comprehensive coverage is part of the policy.

Injury protection

Most policies have a set dollar amount for medical coverage and personal injury protection; it is normally set at the state-mandated minimum. Check to see if these amounts are enough – an insurance professional will be able to help you, if you need guidance. If required, the coverage limits can be increased.

You should consider purchasing as well the following as additional coverages to keep your car as fully insured as possible:

Underinsured/Uninsured motorist

This provides coverage if damage was caused by a motorist who does not have insurance.

Gap insurance

This is coverage for the difference between the actual cash value of the car and the amount still due on the financing used to buy it.

Towing

This may not seem like a major cost and is often overlooked. However, towing expenses can be very high and since the cost of the additional coverage is not great, it should be part of the full coverage car insurance.

OEM endorsement

Many car owners do not know that parts from the original equipment manufacturer may not be used for repairs. Aftermarket and used parts may be fitted to the car. Some insurance companies offer additional coverage to cover the cost of OEM parts used for repairs.

Car rental

You will need to use a rental while your car is in the shop. Check to see if your policy covers the cost of car rental.

Other options

There are more coverage options available like vanishing deductible and full glass coverage. An insurance expert will be able to tell you about them and help you pick the kinds of coverage you need.

Get the protection you need

Now that you know what full coverage car insurance is, and more importantly, what it is not, you should consult a reputed insurance agent to fully comprehend the terms of your current policy and get the additional protection you need.