Have you ever heard the term "full-coverage auto insurance" and wondered what this means? Many people know what this means, but some do not. If you are new to car insurance, you might not understand this term. A full-coverage policy generally includes three coverage types, and here is an explanation of these types.
The first coverage you receive with any auto insurance policy is liability protection. You can get a liability-only policy if this is the only coverage you want or buy a full-coverage policy. Full-coverage plans always include liability coverage. Liability coverage is unique, as it actually pays for the damage you cause to other drivers when you do something that leads to a collision. It does not pay for the damage you encounter to your vehicle. Having liability protection is a legal requirement in most states, and it protects you financially. Therefore, it is always a good idea to have this protection.
The second coverage type you receive with a full-coverage plan is collision coverage. Collision protects your car if you are the at-fault driver in a collision. If you wreck your car, your collision coverage pays for the repairs or replacement you need afterward. You pay more for this coverage than other types, but it is good to have if your car is worth much money. It is also a legal requirement if you have a car loan.
The third coverage type you receive with a full-coverage plan is comprehensive insurance. This coverage pays for the damage you incur to your car from various things. For example, it covers the costs to repair hail damage to your car. It also covers the costs if someone breaks into your car and damage it. It covers damage from many other events, too, including animal collisions.
Many full-coverage policies include some extras, too. An extra refers to an additional coverage type that your policy includes that does not fall into the three categories listed here. The most common extra you might receive is roadside assistance. Roadside assistance provides the protection you need for car problems you might experience. For example, it provides help if you get a flat tire, run out of gas, or lock your keys in your car.
If you want a full-coverage policy, talk to a local car insurance agent. An agent can help you determine if you need a full-coverage plan and the costs for it.