“Full Coverage” Car Insurance May Not Be “Fully Covering” Drivers
Written by AskTheLawyers.com™ on behalf of Michael Chaloupka with Metier Law Firm.
Not all car insurance is “full coverage” insurance. However, even “full coverage” insurance does not cover drivers in the event of any circumstance. Beware of insurance providers who offer a “full coverage” insurance policy as there is no such thing as a policy that covers your vehicle in any given situation.
Instead, it is important to assess your current insurance policy and decide what protections are or are not important to you. It may be possible to add or remove policies in order to provide yourself and your family with exactly the kind of protection you need to feel comfortable and safe. To learn more about full coverage and other car insurance options, reach out to an insurance expert.
“Full coverage” car insurance typically includes the following:
- Liability insurance: This is the most basic form of car insurance and is required by law for drivers in most states. This type of insurance is intended to pay for the damages of another party if you are at-fault for an accident.
- Comprehensive insurance: Comprehensive insurance can vary, so it is important to see what is included in your provider’s comprehensive insurance policy. In most cases, this type of insurance is used to cover damages caused by something other than a vehicle collision. This could include damage to the vehicle caused by animals or adverse weather, and may or may not cover windshield replacements.
- Collision coverage insurance: This type of insurance is intended to cover the damages sustained by your own vehicle in the event of a collision or other roadway accident.
Many car accident attorneys recommend adding Uninsured/Underinsured Motorist (UIM) Coverage to your current policy.
While “full coverage” insurance provides several kinds of protection for a driver and their pocketbook, it neglects to offer coverage in several other important areas. Car accident attorneys are good people to ask regarding what kind of insurance is or isn’t necessary to make sure you are covered as effectively and practically as possible on the road.
UIM insurance is intended to cover your damages in the event that you find yourself in a collision with an uninsured or underinsured driver. Although it might be possible to file a claim against the at-fault driver in this situation, oftentimes when someone does not have insurance, they do not have the assets to pay a claim of any significant magnitude. This is why car accident attorneys recommend adding UIM insurance to your current policy, otherwise you will likely find yourself out of luck if you are hit by an uninsured/underinsured motorist.
Medical Payments (MedPay) or Personal Injury Protection (PIP) is another type of coverage considered essential by many car accident attorneys.
MedPay is another kind of insurance coverage designed specifically to pay the medical bills for a policyholder injured in a car accident. Even with personal health insurance, injuries sustained in a car accident can need a lot more medical care than what health insurance is willing to cover. This is where MedPay comes in extraordinarily handy. An alternative to MedPay in some states is PIP. PIP insurance functions in the same way as MedPay and is intended to serve the same purpose, ensuring that someone injured in a car accident has the resources they need to pay their medical bills.
In some states, MedPay or PIP may automatically be applied to a person’s coverage; however, this coverage can be waived. Car accident attorneys do not recommend waiving this kind of coverage and, in fact, recommend purchasing as much as you can comfortably afford to ensure you are as financially protected as possible in the event of a car accident that causes serious injury.
Other kinds of car insurance include the following:
- Gap insurance: This type of insurance is intended to help pay the rest of a car loan in the event that the vehicle is totaled before the loan is paid off.
- Emergency road service coverage: Many people choose to purchase this kind of coverage through a third-party roadside assistance service. This coverage provides roadside assistance in the event that your car breaks down on the side of the road.
- Rental car coverage: This type of insurance is intended to pay the costs of a rental car if your vehicle is damaged in an accident covered by your current insurance policies.
- After-market equipment coverage: This type of insurance might be a good choice for drivers who plan to modify their vehicle. In most cases, insurance only applies to stock car parts. To cover add-ons or alterations to the vehicle, additional coverage in the form of after-market equipment coverage will need to be purchased.
When buying a new or used a vehicle, the sales agent will usually offer these insurance options through their service provider. However, they are also available through most insurance providers. To learn more about these or other types of insurance, or to check on your current policy, reach out to your insurance provider today.