While full coverage car insurance may not always be necessary, many people choose this type of plan for the financial protection that it can offer. Generally, full coverage includes everything you may need and more, such as property damage and bodily injury.
In fact, you may only need half of the coverages that this type of auto insurance can offer, but many find that driving with the full package can allow them to rest easy without having to worry about the costs that can come with an accident.
What does this type of auto insurance cover?
With a full coverage deal, you’ll be covered by liability insurance and first-party benefits; but what are they, and why might you need them?
Often, liability comes under the full coverage deal – and at the time of writing, this is the only part of car insurance that you’re legally required to have (although this may not be the case in all states).If you were in a crash and it was your fault, this will pay for damages caused to the vehicle of the other driver(s) involved in the accident.
There are also two types of car insurance in liability too, which are PD (property damage) and BI (bodily injury). However, neither of these are meant to cover you and your vehicle – instead, they’re there to protect the other driver.
In general, there are a few different types of auto insurance that appear in the second half of full coverage – and these come under the umbrella-term of first-party benefits.
While it’s often more expensive, and even optional in most states, the main benefit of having this type of coverage is that you can use it to protect your needs should you be involved in an accident. First-party benefits often include:
- Personal injury protection, which is essentially BI, but it covers your own injuries rather than those of the other driver (drivers are currently legally required to have this in 12 states)
- Collision coverage, which will cover any damages caused to your vehicle by an accident regardless of who is at fault in the situation
- Comprehensive insurance, which is similar to collision, but for other kinds of damages (such as vandalism)
How much does full coverage cost?
Unfortunately, full coverage car insurance tends to cost quite a bit more than the basic policies, due to the fact that it offers much more. As a result, you may want to know the average costs of these deals before you decide on whether or not one may be right for you.
While the costs can vary from state to state (and even the city you live in), the additions to the overall price are likely to come from the collision and comprehensive coverage. In many locations, the total sum can be more than double the basic auto insurance plan. Knowing this, you may wonder if these policies are actually worth it, considering you may not even be required to be comprehensively covered by law.
Benefits of full coverage
While the costs can often be quite a bit more than that of an ordinary car insurance plan, getting full coverage can often be a wise idea. In the worst case scenario where car crashes are concerned, many find that the extra protection can often be worth the additional cost.