What Is Considered Full Coverage Auto Insurance?

Full coverage auto insurance is a term that is often used to describe a policy that provides more coverage than the minimum required by law. It is important to note that there is no such thing as a full coverage auto insurance policy, but instead, it is an umbrella term that can refer to a variety of different coverage types. Different states have different laws and regulations regarding auto insurance, so it’s important to know the details of your state’s requirements before you purchase a policy.

What Does Full Coverage Auto Insurance Include?

Full coverage auto insurance typically includes liability coverage, which pays for damage you cause to someone else’s vehicle or property. It also typically includes collision coverage, which pays to repair or replace your vehicle if it is damaged in an accident with another vehicle or object, regardless of who is at fault. Comprehensive coverage, which covers damage to your vehicle caused by fire, theft, vandalism, and natural disasters, is also usually included in full coverage auto insurance. Personal Injury Protection (PIP) coverage is also often included, which pays for medical expenses and lost wages for you and your passengers if you are injured in an accident.

Do I Need Full Coverage Auto Insurance?

Whether or not you need full coverage auto insurance depends on the requirements of your state and the value of your vehicle. In some states, the minimum coverage required by law is considered full coverage, while in other states it is not. Also, if you are leasing or financing your vehicle, your lender may require you to carry full coverage auto insurance. If you own your vehicle outright and your state’s minimum coverage requirements are sufficient, you may not need full coverage auto insurance. However, if you are driving an expensive vehicle or one that is not yet fully paid off, full coverage auto insurance can help provide you with additional protection.

How Much Does Full Coverage Auto Insurance Cost?

The cost of full coverage auto insurance varies from company to company and from person to person. Insurance companies consider many factors when determining how much you will pay for a policy, including your age, driving record, the type of vehicle you drive, and the area you live in. Generally, full coverage auto insurance is more expensive than minimum coverage policies, but the exact cost of your policy will depend on your individual circumstances.

Do I Need to Carry Full Coverage Auto Insurance?

The decision of whether or not to carry full coverage auto insurance is up to you. It is important to remember that full coverage auto insurance provides more protection than the minimum required by law, so if you are driving an expensive vehicle or one that is not yet fully paid off, full coverage auto insurance can help provide additional protection in the event of an accident. However, if you own your vehicle outright and your state’s minimum coverage requirements are sufficient, you may not need full coverage auto insurance.