Sunday, 6 October 2019

Full Coverage Car Insurance Explained

Full Coverage Car Insurance

There is no such thing as full-coverage. People think that term means that you have covered all the optional coverage, are going to be on your car policy. Full coverage mean that you have collision coverage, comprehensive coverage. And you have a deductible.


But full coverage, when they say that to you at the car dealer, they just mean, we want you to have collision and comprehensive coverage because we want to make sure if anything happens to your car it's going to be fixed because we still own the car.

They don't care if you are hurt because an uninsured motorist hits you, they don't care if you have to pay $100 to get your car towed. All they care about is that your car gets fixed.

In some states, if you own your car free and clear, the only coverage you have to have is liability coverage, and that covers the other car or the other person that you might hit in an asphalt accident. You have to have that coverage. If you paid for your car and you don't have a lender, that is the only coverage you have to have By-law. 

If you have a lender and they technically own your car and you haven't paid it off, then you have to have collision coverage and comprehensive coverage, and that is all they care about.

The other options coverages that are important and that are good for you to have is

  1. Uninsured Motorist Coverage
  2. Rental Car Reimbursement Coverage:
  3. Personal Injury Protection (PIP) And Medical Payment Coverage
  4. Towing.

Lets me break it down


Uninsured and Underinsured Motorists Coverage.

Covers you if somebody hits you that doesn't have insurance. In some states, it's estimated that like 30% of the drivers are driving around without insurance. So, it is important to have insurance coverage because if somebody hits you and you only have liability only. Then you have no coverage for your injuries and if you reject it, you do have to sign a form stating that you are aware that you don't have that coverage and you reject it. 


Rental Car Reimbursement Coverage

This coverage, cover you if your car's in the shop and you need to have a rental car. A lot of people think when they have full coverage, that means they automatically have a rental car for 30 days. And people get really upset after they have an accident and they can't get around and they have to pay for their own rental car because you know the insurance companies get better rates on rental cars and it could cost you a lot of money.

But you have to specifically choose that coverage and it is completely an optional coverage on your car policy.


Personal Injury Protection

Covers your medical expenses and also your lost earnings and it even covers for somebody to come to your house may be to help you with rehab and personal injury. Protections cover not only yourself that is the driver but it would cover any passenger that you have in the car.

But if you don't have it, then you don't have any coverage for your medical expenses if you are in an active fault accident.


Towing

This is just a small optional coverage. It's only like $7 per vehicle for 6 months. it's just a little over $1 a month that you pay and it will cover to towing or roadside assistance or if you lock your keys in your car.

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