Auto Insurance Policies

Reader’s Question:

What do I get with a full coverage auto insurance and how can it differ with an ordinary auto insurance?

Morgan

Boston MA

In many cases, people will think that their car insurance policy will also protect them from paying damages done to their car during an accident when in fact, their ordinary insurance policy will just cover them for bodily injuries and property damages done to other people due to the accident. The basic auto insurance coverage will just cover the state-mandated insurance coverage that car owners should have, which is the third party liabilities coverage to pay for bodily injuries and property damages to other people.

In a full coverage auto insurance, what you’re covered for is the state mandated minimum requirements plus comprehensive coverage and collision coverage.

With an insurance policy with an additional collision coverage, you will be covered for the physical damages done to your vehicle due to a collision accident with another driver or another object.

Comprehensive coverage, also referred to as non-collision coverage, can save you from having to pay for repairs when your car is damaged by non-collision incidents such as burglary, vandalism, fire and natural calamities such as flood, storms and tornado. In this case, there is no need for collision accidents and negligent third party drivers in order to make a claim against the insurance policy. The general logic behind a comprehensive coverage is to provide you with the insurance coverage from accidents that are not your fault.

Getting a full coverage auto insurance is not mandatory in most cases. However, scenarios when you need to acquire a full coverage auto insurance is when you are financing a car you don’t own or when you are leasing the car you use. This is because you have to ensure the car owner that his car will always be in good condition.

As a general rule, you cannot purchase a collision insurance coverage without a comprehensive insurance coverage. On the other hand, you can buy a comprehensive insurance coverage even without the collision coverage.

I hope these information will help clear the confusion in your mind.