As car accident lawyers, we see a lot of insurance claims. Simply put, full coverage car insurance means holding all significant car insurance policies such as personal injury protection, bodily injury liability, comprehensive car insurance, uninsured motorist insurance, etc. Though it is compulsory to hold about half of these insurance policies in many states, getting the whole package provides extra benefits. This is what is known as full coverage car insurance.
What Constitutes Full Coverage Car Insurance?
If you have ever wondered about the fundamental constituents that make up full coverage car insurance, here it is broken down for you:
This makes up the first aspect of full coverage car insurance. Liability insurance policies cover the holder against damages he or she may cause to another individual. For example, if you are involved in an accident in which you are at fault, liability insurance will take care of the damages. This type of insurance is mandatory.
Liability insurance has two main types: Property damage liability and Bodily Injury liability insurance.
- Property damage liability protects the holder from financial liabilities caused by damage to another individual’s property in an accident. Purchase of replacement parts, bodywork, and other expenses are covered in this type of insurance. It doesn’t cover bodily injury damages, only damages to vehicles, fences, or other property in an accident and other expenses in a property damage claim.
- Bodily injury liability covers the damages you cause to another driver, pedestrian, or passenger in an accident. It covers expenses such as medical expenses, lost wages, legal expenses, and compensation during a bodily injury claim.
It is important to note that these two insurance policies only protect you during a claim against you or your insurance provider during an accident.
Underinsured/ Uninsured Property Damage and Motorist Bodily injury Insurance
Underinsured and Uninsured property damage and motorist bodily injury insurance are similar to property damage and bodily injury coverage. However, there are slight differences. Typically, if you are involved in an accident where the other driver is at fault, you can file a claim against their insurance provider.
However, if the driver is uninsured or their coverage limits are not enough to cover the damages, your underinsured or uninsured will take care of the necessary expenses. If the driver is underinsured, the expenses outside the other party’s coverage limits will be covered by the underinsured motorist insurance.
Personal Injury Protection/ Medical Payments Coverage
You can only get personal injury protection in some states, though it is compulsory in some states. Personal injury protection covers expenses incurred as a result of your bodily injuries. It is similar to medical payments coverage and overlaps with your health insurance.
Medical payments coverage covers the holder, passengers, or pedestrians injured by the holder in an accident. It can also protect you when you are involved in an accident as a passenger in another vehicle. Medical payments coverage supplements your health insurance.
Collision and Comprehensive Insurance
Comprehensive insurance covers the expenses resulting from damages to the holder’s vehicle caused by external factors such as vandalism, hail, animal damage, or other uncontrollable events. Collision insurance covers the expenses resulting from damages to your car during a collision with an object or vehicle. Collision and comprehensive insurance are not mandatory, especially if your car has been paid off. However, if you have an ongoing auto loan or lease payment, the financing company or lienholder may require you to hold both coverages.
6 Reasons to Get Full Coverage Car Insurance
- The basic insurance policies may not cover your bodily injuries or damages caused to your car. You may also have to wait for a long time when filing a claim against another driver or another insurance company before you get reimbursed. Having full coverage insurance ensures you get all-round protection that is also timely.
- Full coverage insurance is beneficial when you do not get the full amount to cover damages during a claim.
- If you are at fault in an accident, the primary insurance policies may not cover the whole amount you are to pay to the victim. This is where having full coverage insurance comes in.
- Full coverage insurance is compulsory if you’re leasing a car or making car payments.
- If you drive an expensive vehicle or live in areas with a high crime rate or extreme weather conditions, then full coverage insurance is highly helpful.
- Full coverage insurance saves you from a huge financial risk. Medical expenses and other damages can cost a lot if you do not have proper coverage.
Let Pinder Plotkin LLC Help You With Insurance Claims
At Pinder Plotkin LLC, we can help you handle insurance claims and ensure that you get the full amount you’re entitled to. Call us today to get a free consultation plus additional advice about insurance that you may need.