When you get the coverage on your auto insurance set up it is important for you to remember what you requested to have covered and why you chose those options. If you don’t know what type of coverage you need or what type of coverage you have it may be worth your while to discuss things with an agent of the company you are considering or do your research online. One of the most common misconceptions that people have when starting their policy is that “full coverage” means everything is covered and this couldn’t be further from the truth.
When you think of full coverage you are actually referring to a coverage that you have when you have covered both sides of an auto accident. The collision coverage that you may carry would be for repairing the damage to your vehicle while the liability coverage would be to pay for damages that you caused to another person’s vehicle. Here is a brief synopsis of both of these things with a few tips on how you should proceed with your coverage.
1. Understand that you need collision coverage if your vehicle is worth less than what you owe on it because you will need to get help getting back on your feet. When you are covered for a collision this means that your vehicle collided with another vehicle, object or person. This is not for coverage during a hail storm or when your car gets vandalized, that is comprehensive (or other than collision coverage) and you should get that too.
2. Your liability coverage is to protect you when you cause an accident so make sure that you aren’t getting cheap on this coverage. Buying a policy that is the state’s minimum at $5,000 in property damage liability coverage means that you are opening yourself up to possible litigation if you cannot pay the parties that you owe.
3. Full coverage does not automatically mean that you have extra medical coverage on your vehicle or that you have rental coverage on your vehicle. Full coverage does not mean that your vehicle is covered in every liability scenario, but it does give peace of mind that you will get something if you happen to total your vehicle.