Do you have ‘full coverage’ auto insurance? Do you know what ‘full coverage’ really means? Based on the name alone, it is easy to assume that full coverage is all you need to start up the car and hit the road; but it isn’t quite so simple. In fact, the term ‘full coverage’ can be quite misleading if you do not know what it actually does – and doesn’t – cover. Continue reading to read our complete buyer’s guide to full coverage auto insurance.
Building a Full Coverage Auto Insurance Policy
To begin with, and to follow-up on the opening paragraph, there is no such thing as “Full Coverage” insurance. The term “Full Coverage Insurance” cannot be found in any policy, and is just a term that someone can up with to describe a policy that provides physical damage coverage in addition to liability coverage.
Auto insurance is a highly customizable product. Policies typically have many moving parts that can be altered and change to fit the needs and budget of the consumer. Here in Wisconsin, all auto insurance begins with a minimum amount of liability insurance. Adding ‘full coverage’ is generally understood as including both collision and comprehensive on your policy to protect your vehicle against covered damages and losses. Both types of coverage require policyholders to pay a deductible toward the covered cost of vehicle repairs or replacement.
Accidents happen. If you are responsible for one, it’s not just the victim’s car that will be damaged – yours might be, too. Collision insurance helps pay for repairs or replacement of your vehicle if you cause an accident. It can also help cover these costs if your vehicle is damaged by an uninsured driver.
What happens if a sheet of ice slides off a roof and onto your car? What if a fire or other disaster completely destroyed your vehicle? From natural disasters to theft and vandalism, comprehensive insurance is designed to minimize your losses due to forces outside your control.
Maintaining Full Coverage Auto Insurance
Collision and comprehensive insurance are often required by lenders to protect their interest in the vehicles that secure their loans. If you financed your car, chances are you are required to purchase full coverage as a part of your lender agreement. Once your vehicle is paid for, you have the option of dropping full coverage, but doing so could be a mistake. A single major accident or natural disaster could be enough to wipe out your investment in your vehicle. That makes the added cost of collision and comprehensive coverage seem quite small in the long-term. We recommend maintaining full coverage at all times – regardless of whether you are required to.
You may also want to consider adding additional coverage to your full coverage auto insurance policy if you are interested in providing yourself with solid and more complete protection. Most drivers opt for full coverage that protects their personal vehicles, as well as increased liability limits to protect their bank accounts and future earnings against bodily injury and property damage litigation. In addition, we recommend speaking with your agent about the inclusion of other types of coverage that are sometimes overlooked such as:
- Uninsured and Underinsured Motorist Protection
- Medical Payments Coverage
- Rental Car Reimbursement
- Towing and Labor Coverage
- Emergency Assistance
- And More
Ways to Save on Full Coverage
We get it; full coverage auto insurance costs more than a basic, liability-only policy. Our job at Reis Insurance is to make sure the coverage you need is available at a highly competitive price. There are many ways to save on your auto insurance without having to cut your coverage. In fact, trimming down the limits and coverage types on your policy is a good way to cost yourself far more money in the future should you need to file a claim.
We start by shopping and comparing rates from multiple Wisconsin insurance. We can also suggest raising your deductible and finding out if there is anything you can do to qualify for a discount, such as paying your premiums in full or combining your auto and homeowners lines of coverage.
Call us to find out how much we can save you on full coverage auto insurance. We look forward to serving you soon.