March 25, 2009

What Does Full Coverage Mean?

What Does Full Coverage Mean?

In today‘s market, there are an absurd amount of options to choose from when insuring your automobile. There are a wide range of different levels of car insurance plans for different needs and different budgets. It is very important to know what you are paying for with your plan and what is all included in your coverage. You want to pay for only what you need and deserve, especially when the cost of everything around you is on the rise.

The Definition of Full Coverage

One common term that is often used when describing automobile insurance is full coverage. What does full coverage actually mean? Often times the term full coverage is used to refer to a plan that includes and covers more then just liability damages and costs of an accident.

It is important to keep in mind that different car insurance companies offer different full coverage packages and plans – not all full coverage policies offer the same coverage.

Obviously, in most cases, the more you pay the more the plan will include. Some car insurance companies‘ full coverage includes the repair of your vehicle, and if you were at fault and the accident was caused by you the repair of the other damaged vehicle or property involved as well. Depending on the full coverage plan, any injuries caused by the accident to you or others may also be covered.

With all the variances in full coverage options and packages it is very important that you know what is all going to be actually covered under a full coverage plan.

Most full coverage auto insurance plans will cover the costs of:

  • Vehicular damage, even if you are at fault in the accident.
  • Medical costs for you, no matter who is at fault.
  • Medical costs and vehicle damage to other parties, if you were at fault.
  • Acts of God, such as hail damage, tree limbs falling, etc.
  • Vandalism and non-accident related damage.

One automobile insurance company‘s full coverage plan might be equal to or less effective for you than another car insurance agency‘s comprehensive plan. It is essential to know what your car insurance package includes and what coverage you are exactly paying for.

What Factors Into a Full Coverage Rate

There are lots of factors that play a role in determining your car insurance rates. Gather your information and go about getting the best and most affordable coverage by knowing what it is you are looking for and what it is that you need from your car insurance. Consider the age and condition of your vehicle, your past driving record and what rates are like in your geographical region to help determine the amount of coverage you need. Rates are determined by:

  • Driving record of primary and secondary drivers
  • Age of all drivers
  • Credit history
  • Age of vehicle
  • Value of vehicle

Remember, when shopping around for automobile insurance it is important to think about, research and investigate what kind of coverage it is that you need. Doing your homework when searching for car insurance can help save you a bit of money. You can work with car insurance companies to find a plan that covers all of these needs and fits within your budget.