What Is Full-Coverage Car Insurance?

By Contributing Writer

  • Overview

    What Is Full-Coverage Car Insurance?
    A full-coverage car insurance policy is one that offers a combination of coverage that includes mandatory liability insurance as well as insurance for damage to your car. Though different people define it in different ways, there are a number of common coverages that are typically included on a full coverage car insurance policy.
  • Liability

    A full-coverage car insurance policy will include state-mandated liability coverages. This includes mandatory coverage for bodily injury and property damage. Bodily Injury pays for the hospital costs for injury to another person, which may result from an accident in which you are at fault. Similarly, property damage coverage will cover damage to the other person's car or property.
  • Medical

    Depending on your state's insurance laws, a full \-coverage car insurance policy will include coverage for injury to you and your passengers. This type of coverage is referred to as Medical Payments coverage or Personal Injury Protection. It is paid out, regardless of whether you are at fault.

  • Physical Damage

    Every full-coverage car insurance policy will include two types of Physical Damage coverage: collision coverage and comprehensive coverage. Although optional under state law, collision and comprehensive coverage will be included in any full coverage, regardless of which state you live in.
  • Features

    Collision and comprehensive coverage insure your car against physical damage. They will pay for the cost to repair or replace your vehicle in the event of a covered loss. Collision coverage pays for damage resulting from collision or upset of the vehicle. Comprehensive coverage pays out for damage caused by an incident other than a collision, such as fire, hail, flood, theft or vandalism.
  • Misconceptions

    Many drivers wrongly believe that full coverage means they are covered in every circumstance. To the contrary, there are limits to the amount paid by your insurer for each accident. For example, if you have Bodily Injury limits of 15,000/30,000, this means that your policy will pay up to $15,000 per person but a maximum of $30,000 per incident.
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