What Is Full Coverage Car Insurance?

What Is Full Coverage Car Insurance

For so many people buying Auto Insurance, they always come across the phrase full coverage and so many people hearing it for the first time will be wondering “what is full coverage auto insurance”? Or “what is full coverage car insurance”?

Full coverage car insurance means the whole kit and caboodle of auto policy coverage if you’re buying car insurance; it covers

  • Bodily injury liability.
  • Electronic lock and key replacement.

In some other words, full coverage automobile insurance combines the big three of:

  • Liability
  • Collision and
  • Comprehensive and for others, it’s whatever criteria that is required by their state.

Having said this, there is no exact definition of full coverage auto insurance. However, it may be considered as a policy that includes these six coverages when people think of it which the Insurance Information Institute considers as “basic auto insurance policy:” so what does full coverage car insurance cover? full coverage car insurance covers the six things below;

Related: Beginners guide to Auto Insurance

6 Coverages of Full Coverage Car Insurance

  1. Bodily Injury Liability

Bodily injury liability is a type of insurance that provides financial back up to insurance policy holders when they are at fault. Having the Bodily injury liability gives the holder the opportunity for the insurer the take care of the financial implications for injuries that might have been caused to others like the driver and/or passengers in another car.

What Are The Expenses Covered by Bodily Injury Liability?

The expenses covered by Bodily Injury Liability includes

  1. Medical care
  2. Hospital bills
  3. Loss of income
  4. Pain and suffering
  5. Even funeral costs lots more.

The price limits for full coverage auto insurance are usually written as two dollar amounts, such as $50,000/$100,000 or 50/100.

  • The first number expresses the highest amount or maximum amount of money that can be paid to each person in an accident you caused or you are responsible for or at fault.
  • The second value expresses the total amount of money that can be paid out for a single accident you are responsible for.

In most state in the united states, Bodily injury liability is mandatory for your policy.

  1. Property Damage Liability

In property damage liability, you will get financial backup for an accident you are responsible for or at fault. The car insurance company will take care of the financial implications of someone else’s car or property if there is a case of accident you are at fault. In other words, the insurer pays or replaces someone else’s damaged property in the cause.

The property can be either car, building or fence of someone you hit. The liability insurance limits are displayed in a series of three numbers like 25/50/10.  The last number refers to the property damage(s), which is given in thousands of dollars. In this case  from the example given, it’s $10,000. Also, Property damage liability is required in just about every state in the United States.

 Related: 5 smart tips on how to lower your car insurance rates

  1. Personal Injury Protection or Medical Payments

With Personal Injury Protection (PIP) or Medical Payments (Med Pay), the financial implications your own injuries in an accident is covered. This Depends on the package you select and what your coverage has got to give. Also, your family members living with you as well as your passengers may also be in the coverage. This coverage may extend to injuries sustained either while you are riding in another car or as a pedestrian and it’s typically available regardless of who is at fault for the accident.


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