Full coverage auto insurance facts

Auto insurance companies and drivers often have different understandings of the same notions. And the term “full coverage” is a great example for this. When car owners use the term they think that such a policy will cover their vehicles in any circumstances. However, from the viewpoint of insurance providers who use this term in their advertisements, this only means that their “full coverage” policy meets the state requirements concerning bodily injury and property damage coverage types. And that's not quite what you have in mind when saying “covered against anything”, right?

Such misunderstandings often lead to customers being confused and even uncovered in different situations, while having “full coverage” policies. Besides, such policies are often cheaper than others (because their coverage options are stripped down to bare minimums) and many customers fall for such advertisements. But what some car owners do not understand is that it's impossible to have an all-in-one policy. And even if there was one it would cost times the amount you pay for a typical policy, because it would be too much of a risk for the insurance company to issue such a policy and expect no claims.

In reality, auto insurance policies are comprised of different coverage types that could be tailored according to your personal insurance needs. Say, you want only the bare essentials for the lowest price – get the standard third party liability coverage and make sure it meets the state minimum requirements. Want to have additional coverage – buy add-ons. For example, you want to make sure that your car will be covered even in case you have an accident with an uninsured driver – buy Uninsured Motorist Coverage. Or you need a car all the time and can't afford driving public transportation while your car is in the repair shop – purchase Rental Reimbursement and your out-of-pocket expenses for renting a car will be paid for. So as you see, it's a matter of personal needs and how much are you willing to spend on auto insurance to get the ultimate coverage protection.

Sure, you can purchase all available auto insurance coverage types and claim that you have “full coverage” on your car. However, first of all it will cost you a lot of money and that's definitely not what you are looking for in an auto insurance policy. And you will still face exceptions with most coverage options that won't cover you in specific situations. So it's technically impossible to have “full coverage” even if your insurance provider has promised you one.