What does full coverage auto insurance cover? With a dizzying array of insurance plans out there, it can be confusing to find the right type for your needs and budget. The crucial element in making the right decision when it comes to car insurance is to be informed of all of your options.
Law Requirements For Basic Auto Insurance
In most states, you are required by law to carry liability insurance. You can think of liability as a no-frills type of auto insurance. Liability insurance protects you in the event of an accident when the other party is injured or their property is damaged. Liability covers these damages, but nothing more than that, which means liability does not cover your vehicle's damages.
Many people choose liability insurance for financial reasons, and liability insurance accounts for approximately 50% of all auto insurance policies. However, it is highly recommended that drivers buy a more comprehensive policy. Enter full coverage auto insurance.
Full Coverage Auto Insurance
You might not hear the phrase "full coverage" auto insurance, but, in order to get full coverage, you need to invest in more than basic liability coverage. Full coverage auto insurance protects your car against various situations. When you are looking through car insurance quotes, you'll see that full coverage auto insurance involves a combination of comprehensive and collision coverage.
Comprehensive insurance includes all coverage provided in liability insurance, but it is not only activated as a result of an accident. Comprehensive coverage also covers damages incurred by acts of nature, theft and vandalism. Collision covers damages to your car in the event of an accident. In liability, your insurance covers damages to the other vehicle. In collision, your car is likewise covered if damaged.
If you want auto insurance that truly provides full coverage, you may want to look for a policy that covers damages resulting from hail, fire and flooding. Some policies even include pothole damage.
As you can see, your car is vulnerable to a variety of accidents, not all of them related to crashes. Full coverage auto insurance can help you be prepared for anything that may happen to your car in the future.
All automobile owners would like to find a way to slash car insurance rates and get low rate car insurance. Auto insurance costs take a big chunk of our monthly paychecks. In some areas, costs are greater than in other areas, but all across the board, insurance premiums are high. Here are 10 tips to follow to try to slash even a few dollars per month off your auto insurance cost.
Why is car insurance so high for teenagers? The stats are stacked against them, but there may be ways that you can save on your teen's car insurance bill.