What is Considered Full Coverage Auto Insurance

When it comes to choosing auto insurance, it's advisable that you make an informed decision. You want an insurance policy which adequately covers your requirements and lets you rest easy about the risk related to the insured product. In case of cars, there are plenty of insurance companies offering varying kind of insurance coverage. The most recommended type of auto insurance is full coverage auto insurance, whose features will be discussed further.

About Auto Insurance Policies

When it comes to auto insurance, it is mandatory in every US state that you purchase liability insurance. This type of insurance is the least expensive of all insurance policies and it pays for the damages inflicted by your car collision with any other vehicle and any bodily injury caused. It offers no compensation for damage of your own car or your own personal injury. That's what sharply contrasts full coverage against liability insurance.

It offers a much more wider coverage range. When choosing an auto insurance policy, check the minimum deductible, premium amount and the compensation amount offered in case of car damage and bodily injury. Auto insurance quotes must be carefully scanned before making a decision.

What is Full Coverage Auto Insurance?

Such a policy primarily offers collisions coverage and comprehensive coverage. Besides these two components, the policy offered by most companies also includes liability insurance.

What is collision insuranbe? A collisions insurance cover will pay for any damages in your car, that occur as result of collision in an accident. This is the most important component as the car damages in accidents can be really expensive. It also covers damages that may be caused by your car's collision with any other non-vehicular objects like trees, fences, electrical poles etc.

The second important component is comprehensive coverage, that offers compensation for any damages that may occur as a result of natural disasters, fire or vandalism. This includes damage that may occur as a result of earthquakes, thunderstorms and even floods. Of course, details of every policy vary and you will have to read through the insurance policy prospectus carefully to know precise coverage details.

The third component is liability insurance that lets you pay for damages inflicted by your vehicle. One point to be noted here is that this policy may not cover the car repair expenses, that may occur because of a breakdown. In other words, repairs caused due to negligence or low maintenance are not paid by the insurance company. Cheap insurance definitely won't pay for this. Some companies offer a breakdown cover that covers this car repair risk too. Research extensively through the full coverage auto insurance quotes offered and consider the coverage details carefully, before choosing a policy.

As a full coverage vs liability insurance comparison would reveal, the former is certainly a better option compared to the latter. While the modifier 'full' should not be taken too literally, this insurance policy does provide comprehensive coverage, that can let you rest easy about accident coverage. As mentioned before, make sure that you read the fine print, before signing on the dotted line to purchase auto insurance, as every policy varies in its coverage details.


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