Do you have full coverage auto insurance? Do you know what full coverage means? It sounds like the total package – something you would not have to think twice about purchasing to provide you the complete insurance protection you deserve. However, full coverage is not as simple as it may seem.
Understanding what full coverage really is can help you make better-informed decisions about the car insurance you choose for your family. Continue reading to learn more about full coverage auto insurance and why you need it.
Definition of Full Coverage Auto Insurance
Full coverage auto insurance is not an insurance product, in fact, it doesn’t even exist. For years, the term “Full Coverage” has been used to describe a combination of coverage types that work together to provide more complete protection for a policy-holder. When combined, these coverage types help prevent significant losses regardless of who is at-fault for an accident or how damages to a vehicle occurred.
While not completely inclusive of all potential damages and losses, it does protect you against a wide range of perils. Liability, collision, and comprehensive insurance are the three major types of coverage types combined and often referred to as ‘full coverage’. However, full coverage here in Wisconsin would also include uninsured motorist protection.
Liability insurance may pay for another person’s bodily injury and property damage, and protects you from your financial responsibility in an accident. Liability claims can easily total tens or even hundreds of thousands of dollars. Ensuring you are covered beyond the state minimum requirements can help shield you from expensive lawsuits and legal fees.
Collision insurance is coverage for the repair or replacement of your own vehicle. Whether you run into a tree or hit another vehicle, the damages to your car could cost thousands of dollars. If your vehicle is totaled, you might be left without transportation. Collision helps repair or replace your vehicle, getting you back on the road as soon as possible.
Comprehensive insurance is physical damage coverage for nearly anything else that could happen to your vehicle, whether a wild animal destroys the interior of your vehicle during a camping trip or a tree limb comes crashing down on your car.
Uninsured Motorist Protection
Though not mandatory in all states, Wisconsin law does require drivers to purchase uninsured motorist protection. This is coverage that protects you and your family if you are victims of a hit-and-run or injured by an uninsured driver. This coverage helps pay for your losses whether you are injured in a vehicle or as a pedestrian who is struck by an uninsured motorist. In Wisconsin, you must carry a minimum bodily injury limit of $25,000 for one person and $50,000 for two or more people. However, you may wish to purchase additional coverage to better protect your assets.
Other Common Auto Insurance Coverage Types
Although liability, collision, comprehensive, and uninsured motorist insurance provide a broad range of coverage, you may still have some vulnerability to a loss if you are involved in an accident. Additional coverage types are available to help mitigate your exposure.
For example, have you considered how you would commute to work or school while your vehicle is being repaired after a collision? It can take weeks for a body shop to order and install replacement parts. If you do not have access to another vehicle, you might have to spend hundreds of dollars on car rental fees. Add that to the cost of towing, and you could quickly deplete much of your cash reserves.
We recommend speaking with an independent agency like Wolfgram Insurance here in Waukesha to discuss additional coverages to supplement your ‘full coverage’ insurance. We offer a wide range of protection, including:
- Underinsured Motorist
- Personal Injury Protection (PIP)
- Medical Payments
- Rental Car Reimbursement
- Emergency Assistance
For more information about full coverage auto insurance options and to get your free quote, please contact our office. We look forward to serving you soon.