All That You Need to Know About Full Coverage Car Insurance

There is no policy called full coverage car insurance. However, when it is used, you need to carry comprehensive and collision coverages plus anything your state requires. Every state mandates carrying liability coverage, but the coverage limit varies according to state. Though comprehensive and collision coverages are optional, your lender may require you to carry them if you finance or lease a car.

Even if your lender does not mandate coverage, a new car is costly and should be protected against all potential perils and liabilities. So, you can buy:

• Liability Coverage – Covers medical and property damage expenses of a third party if an accident caused by you has damaged their property or left them injured.
• Comprehensive Coverage – Pays to repair or replace your vehicle if it is stolen, vandalized, or damaged by fire or other natural disasters.
• Collision Coverage – Pays for damage to your car resulting from a collision with an object, such as a tree, lamppost, telephone pole, etc.
• Medical Payments Coverage - Provides medical expenses for you and your passengers after an accident.

Besides these, you can also buy rental car reimbursement and roadside assistance coverage depending on your budget and needs.

An auto insurance policy with customized coverage can cost more, than a standard one. However, the cost also varies depending on the model, make, and year of your car and the deductible you choose. The deductible is the amount you need to pay upfront before your insurance kicks in to cover you. If you choose a higher deductible, your premiums will be lesser. Nevertheless, whatever deductible you choose, make sure you can afford it. Otherwise, your coverage will not begin.