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What Is Considered Full Coverage Auto Insurance?

If you’ve heard of full coverage auto insurance and wondered what it is — you’re not alone. And that’s because there really isn’t a policy offered that’s called full coverage insurance.

But, that doesn’t mean you can’t get all the protection you want on the road. You can actually create your own, customized auto coverage policy. Start by taking a look at combining liability, collision and comprehensive insurance together with other policies for a broad base. The best approach to having all the coverage you need for your individual situation is to discuss your options with your agent and craft a customized policy.

Wanting full coverage means having that sense of security on the road is important to you! Having an American Family Insurance agent on your side is the first step to getting that security. Remember, as things change, so should your insurance — an annual review of your policy helps you stay on top of your coverage needs.

What Does “Full Coverage Insurance” Cover?

Now that you know full coverage is really about getting the right protection for you and your family, how do you get that level of protection? It’s pretty simple with an agent there to guide you. But let’s take a look at how the combination of liability insurance with comprehensive and collision policy add-ons can give you coverage that you need to be fully protected.

Liability insurance. The foundation of your insurance plan is going to be liability coverage, which is legally required by many states. Liability helps pay the costs of damages and injuries to others if there is an accident and you were determined at fault. Liability insurance can be purchased at different levels and the legal requirement is typically a bare minimum. To be fully protected you’ll want you’ll go beyond these low limits. Talk to you agent to ensure you’re limits are covering your needs.

Personal umbrella liability insurance. Umbrella insurance adds protection on top of your liability coverage. It acts as a supplement if you’re involved in an accident and the expenses exceed your auto policy. This not only gives you the peace of mind you want on the road, but the policy extends to give you added security at home, while using a boat, ATV or snowmobile, when you travel and more. Your agent will be happy to explain all the benefits umbrella insurance adds.

Comprehensive insurance. Sometimes people confuse full coverage with comprehensive — which is understandable since the word “comprehensive” sounds like it covers everything. Comprehensive insurance actually covers damage to your vehicle that happens from an incident that isn’t collision related. Typical situations include storm, fire, flood damage, hitting an animal and theft or vandalism.

Collision insurance. When your car hits another vehicle or an object, or is in a rollover, your collision insurance steps in to help pay for out-of-pocket expenses to your car. Collision protects you whether you were at fault or not.

Uninsured/Underinsured motorist insurance. Some states require you carry one or both of these insurance plans, just in case you’re involved in an accident with someone who doesn’t have enough or any car insurance.

Medical payments. With medical payments coverage you get help paying medical bills for you, your family and your passengers when you’re involved in a covered accident. You also get protection if you’re walking or riding a bike and get hit by a vehicle.

You can see how combining these auto insurance coverages together gives you more protection on the road. It’s a smart way to protect your investment and get that full coverage security.

What Isn’t Included in “Full Coverage”?

Since your full coverage policy is going to be customized, you get to choose what other insurance options you want. The auto insurance options are listed above provide a great base but, based on your situation, you may also want to consider rolling one or more of these into your plan as well.

Emergency roadside assistance. Whether you’re stuck in your driveway with a dead battery or on the highway with an empty tank — you’ll be happy you added the inexpensive emergency roadside assistance option.

Rideshare insurance. If you’re a driver for Lyft or Uber this insurance gives you added security during gaps in the auto insurance provided by that company.

Rental reimbursement coverage. If you are in an accident and your vehicle will be in the shop for a few days or more, this insurance helps pay for your rental car.

There are even more coverage options that might apply to your situation and help you round out your personal version of full car coverage. Talking to your agent will help you figure out what fits.

What Coverage Is Right for Me?

Is full coverage worth it? Well, that depends on your situation. Let’s review some factors that may help you decide what coverage is right.

State requirements. Some car insurance coverage may be required by your state and completely optional in others. A refresher in what your state’s legal standards are is a great first step.

Value of your vehicle. You don’t want to spend more for coverage on a vehicle that’s not worth very much. Then again, if you have an expensive, new car — you probably want as much coverage as possible.

Your financial situation. A good rule of thumb to follow is, the best protection is the most insurance you can afford to carry. This is a personal decision and only you can decide how much you can afford to add on to your basic policy.

Your location. If you’re in a high crime area and car theft and vandalism are on the rise, then you can see how adding a little extra coverage to protect your ride might be a good idea.

How do you use your car? A car that sits in storage most of the time probably doesn’t need as much coverage as one that travels long distances on a regular basis.

Like the idea of creating your own full coverage car insurance plan? Connect with your American Family Insurance agent to get the ball rolling and create customized coverage for security on the road.

If you haven’t reviewed your policy options with your agent in a while or if you’ve recently experienced a change in your life — now is a great time to reconnect and find out what you need to craft your own full coverage security.

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Related Topics: Insurance Terms , Insurance Needs