Is Cheap Full Coverage Insurance Good Enough?

Do you think that cheap full coverage insurance is all you need? You may or may not be right about this. Although many drivers think full coverage means there is nothing left needed as far as their car insurance coverage goes, they may be sadly mistaken. In fact, most drivers do not find out the truth about what their auto insurance policy covers until they have to file a claim.

By then of course it is too late to fill in the missing gaps in coverage. So, although the name full coverage sounds nice, it is important to understand what exactly it fully covers. If you think you have all the coverage you need or are looking into getting just full coverage, the first thing you should be aware of is what exactly this is.

Is Cheap Full Coverage Insurance All You Need?

You sign up for that full coverage auto insurance policy and think you have everything you will ever need when it comes to coverage for you as a driver and your vehicle. Just make sure you are actually aware of what full coverage is, especially when compared to the types of auto insurance you may actually need.

• Generally, full coverage actually means it covers what you absolutely must have to meet the required insurance. In other words, it is usually meets the state requirements for wherever you live. This could be liability or no-fault coverage, but either way it usually does not go beyond the basic minimum requirements.

• In some instances however it may also include uninsured motorist and PIP or Personal Injury Protection, unless this is the same as the no fault coverage you are required to have in your state. The problem is you probably don’t actually know what you have, if you signed up for full coverage car insurance. The best thing you can do is find out from your current policy provider what exactly you are covered for.

• If you have a car that is financed you need more than this type of minimal coverage. You may have set it up correctly without realizing it if you worked with an agent who knows what you need. However, if you did not then you may find out at the end of your car loan that your lending company tacked on their own pricy car insurance to make sure you got the coverage you need. Once you are done with the car loan you will have to then pay for that extra coverage you had.

No matter what you have currently, it is a good idea to get quotes and find out how much you could actually be getting cheap full coverage insurance for.

Some Other Things to Know

If your full coverage auto insurance only covers liability it means you have coverage for damage you cause in an accident to someone else in relation to personal property and medical expenses. Of course, even this is only up to a certain dollar amount so you meet the state’s minimum requirements for bodily injury per person, bodily injury total per accident and personal property damage coverage. Anything above the amount covered is still your responsibility out of your own pocket.

If you have no fault or PIP as part of your full coverage policy then you are covered for your own damages and medical expenses no matter who is deemed the at fault driver in an accident. This helps prevent the need for lawsuits or injured parties being denied treatment until after the insurance is worked out. However, this policy also can have a low amount of minimum coverage requirements which still means you would owe a lot out of your own pocket.

Does This Include Collision or Comprehensive Insurance?

In most cases, unless you have specified you want collision and comprehensive coverage this is not included. Here is a brief overview of what is included with collision and comprehensive insurance.

• Collision insurance – Although the name implies this would be any type of collision, in most cases it only covers a collision involving another vehicle. Anything other than that is usually then covered by comprehensive.

• Comprehensive insurance – Comprehensive insurance coverage fills in many of the gaps other types of insurance leaves behind. For example this usually covers collisions with anything other than another vehicle. It is also the type of coverage you need to protect yourself from things like Acts of God, theft, fires and natural disasters.
  

So, while it may sound like these are the types of details that would be included with your full coverage, more than likely you will have to expand your policy to get this kind of policy protection.

Is Cheap Full Coverage Insurance For You?

The bottom line is that you have to decide if you need full coverage or more. If you are not required to have more than full coverage car insurance as mandated by a financial lender for a car loan then it is completely up to you. Much of this simply depends on the value of your car and how much you want to spend on insurance premiums per month. Keep in mind even though getting slightly lower monthly premiums can be tempting, if you have to pay for your expenses out of your own pocket following a collision this can be a lot bigger a financial burden.

In some cases, drivers have problems even coming up with the deductible to get a claim filed. So imagine having to pay extra for things like:

• Repairs to or replacement of your vehicle
• Damages to another person’s personal property including or in addition to their vehicle
• Medical expenses for yourself or others which can include hospital stays, ambulance transport, surgery and expensive aftercare like physical therapy

To find out just how low your rates could be, all you have to do is use your zip code to get started. Then you will be well on your way to getting started getting a cheap full coverage insurance policy or even more.

[Source]