Today’s topic: Auto insurance and why it’s more complicated than it needs to be.
Many people look for auto insurance and think, “I want a full-coverage plan.” The tricky thing about this is that there is no single plan that covers everything. Instead, full coverage is something that you build by choosing several types of coverage that, all together, ensure that you’re well-protected, should an accident happen.
So here are some of the things that go into a “full coverage” auto insurance plan:
- Of course, you have your state-required liability coverage to cover property damages and bodily injury should you cause an accident.
- Collision coverage will cover damages to your vehicle, regardless of who caused the accident.
- Then there’s comprehensive coverage, which covers you if something other than an accident happens, like vandalism.
Those are the three main types of coverage, but there are also additional types of coverage that you can add to your insurance to enhance your level of protection, like:
- Uninsured and Underinsured motorist protection, to protect you if you get hit by a driver with insurance that can’t cover your needs.
- Emergency Road Service, in case if you’re stuck somewhere and you need someone to tow your vehicle.
- Medical Payments Coverage to ensure that you’ll be covered if you’re hurt in an accident that you’ve caused
- Also, if you ever have to take your car into the shop for any reason it’s good to have rental reimbursement, to ensure that you can get where you need to go without worrying about how long your car will be unavailable.
The biggest reason that there is not such a thing as a “full coverage” auto insurance policy is that it’s not one-size-fits-all. Someone insuring a used car with fading paint may not feel the need to have comprehensive coverage, and will certainly not need Gap Insurance.
It’s important to consider the right coverage for you, keeping in mind things like your budget, your car, where you live (is vandalism a concern in your area?), etc. If you have questions, want us to review your policy, or would like to work with one of our agents to determine what “full coverage” means to you and your family, contact us and we’ll help you navigate to the best policy for you.
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