The majority of drivers live in states that have auto insurance coverage laws. The types of coverage that must be obtained vary. Most states require vehicle owners to have minimum liability coverage on their vehicles. There are instances when drivers must have full coverage auto insurance, and sometimes it is wise to have full coverage even if there are not any existing legal requirements. The following points offer insight into full-coverage auto insurance. 

Types of Coverage

There are three options for auto insurance:

• Liability coverage covers damages to property and injuries if the insured individual is deemed at fault.
• Comprehensive coverage is an ideal full-coverage auto insurance option because it covers unexpected events such as vandalism, theft, fire, and weather-related damages.
• Collision coverage is a type of full coverage that is specific to paying for vehicle repairs or vehicle replacement if a collision occurs.

Some situations require drivers to have comprehensive coverage and collision auto insurance. This is common when drivers are still making payments on their vehicles. The finance company, dealership, or bank usually sets this requirement in the contractual agreement to finance. This is also a requirement for individuals who lease vehicles since they are not the actual title owners and are expected to return their leased vehicles if they decide not to purchase them.

Determining Whether Full-Coverage Auto Insurance Is Needed

There are a few situations other situations for drivers to keep in mind when they are trying to determine if they need full coverage insurance. The value of the vehicle should be a determining value that should be taken into consideration. Full-coverage auto insurance policies tend to cost more than liability policies. It is a good idea for individuals to keep full coverage for their vehicles if they have a dollar value. This is because of the potential total loss if a collision occurs. Some individuals are tempted to reduce coverage to liability when they get their titles. It would likely be better to inquire about a higher deductible full coverage policy, which will be cheaper than a low deductible policy.

Full-Coverage Auto Insurance Add-Ons

Many insurance providers have add-on options for their customers who have these policies. Individuals might have the option to add coverage for things such as rental car reimbursement, roadside assistance, uninsured motorist coverage, or personal injury protection (PIP). Uninsured motorist coverage gives policyholders peace of mind if an at-fault driver who is underinsured or uninsured damages their vehicle. PIP coverage offers protection for the medical bills of injured drivers and their passengers. It may also offer compensation for lost wages. An auto insurance agent is a good resource to use to understand policy options and mandates. 

Contact a local insurance company to learn more about full coverage auto insurance.