What Is Full Coverage Car Insurance?

full-coverage-car-insuranceFull coverage car insurance is a somewhat deceptive term. Although it has no concrete meaning in the insurance industry, it is frequently used to describe policies. It is most often used to describe physical damage coverage that consists of collision and comprehensive coverage. The term full coverage can also be used by an insurance agent describing physical damage coverage in combination with the state required coverage in your area. This can vary greatly from state to state, in Montana only liability insurance is required where as Georgia has minimum required bodily injury liability and minimum required property damage liability. These variances mean that the term full coverage can describe completely different things in different places.

Physical damage coverage is made up of comprehensive and collision insurance and is meant to cover the majority of types of physical damages that could affect your vehicle. Comprehensive insurance coverage covers the vehicle you are driving in the event of damage or loss due to events other than collision with another vehicle. This includes natural disasters like flood or fire. Collision insurance, as you might expect, covers collisions between your vehicle and others. These types of coverage are most useful in protecting newer vehicles in excellent condition as they generally pay out the blue book value of the car in the event of a claim. An older vehicle might cost more to insure than would ever be paid out if it were damaged.

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