Many auto insurance customers have found themselves unpleasantly surprised by the implication of the words, “Full Coverage” when making a claim with their automobile insurer. A full coverage policy is another term for a comprehensive policy that covers what you own and not any other properties that would be covered by a liability plan.
The Difference Between Full Coverage And Liability
Insuring yourself as a driver against liability means that your insurer will cover any costs that you incur as a result of a liability claim from another individual. In practice, that means that, if you are involved in an accident for which you are liable to pay for someone else’s damages, the insurance company will pay on your behalf. Did you know, that in Norway they call car insurance; bilforsikring.
Full coverage applies to your own property specifically, and will cover any damages that you would otherwise have to cover out of you own pocket. That means that you can make a claim for:
- Weather damage
- Maintenance repairs and more
Full coverage will not, however, cover the payment of damages to anyone else’s property. This is exclusively the domain of liability coverage that has to be separately purchased from your insurance provider.
Which Policy Is Required By The State?
In order to drive on public roads in the United States, motorists are compelled to have liability coverage. The idea is that if you are involved in an accident, have a collision with another car or a person, your insurer can provide the money necessary to get the individual’s car back and pay for their medical expenses.
Your own property, however, is not covered by this plan. This is the reason that full coverage insurance is usually offered by insurers alongside liability plans. When you have both policies, you are largely protected from just about anything that could happen to you on the road.
Is Full Coverage Worth The Investment?
Many people shy away from full coverage because it can be slightly more expensive than simple liability coverage. This makes sense, since statistics show people are far less likely to damage other people’s property than their own, and comprehensive coverage has been linked to higher numbers of claims.
However, full coverage offers a convenient and highly attractive option for those people who can afford it, because it allows you to know that your property is safe from damage. Often, that damage can come in the form of unexpected natural disasters or the illegal actions of others (such as in the case of automotive theft).
With full coverage, you can rest easy knowing that, if your car disappears tomorrow, you can make a claim and have your insurer provide a new car of the same value. With simple liability coverage, you can only assure yourself that you will never be forced to pay for someone else’s repairs or hospital bills.
In general, full coverage auto insurance is highly recommended to all drivers, even though liability represents the legal minimum.