“Do
I have full coverage?” is a popular question around our office.
Clients often want to know if they have full coverage or liability
only on their auto insurance policy. Unfortunately, there is no such
thing as full coverage insurance!
Here’s
the problem - “full coverage” has become a common term, but it
can mean lots of different things. If a bank tells you that you need
full coverage, they typically mean Collision and Comprehensive
coverage. But you might think that full coverage means you have
everything we offer. And there are a few important differences
between the two.
Collision
is what fixes or replaces your vehicle if you have an accident.
Comprehensive
is what fixes or replaces your vehicle after storm damage, theft,
vandalism, and other situations that don’t involve an accident.
These
two coverages are usually required
by lenders and are sometimes called full coverage. But there are
other things you may THINK you have when you say full coverage, that
aren’t automatically included.
One
of those items is Rental Reimbursement. This is the coverage that
supplies you with a rental car while your car is in the shop for
repairs due to a claim. Another is Towing coverage, which tows your
vehicle if it breaks down or even runs out of gas.
So
what should you do to make sure you’re protected? The best
recommendation is to work with a local agent who can sit down and
review your coverage line by line. We’ll explain each item, make
suggestions for gaps you may have in your coverage, and make sure
that you know EXACTLY what you’ve got! No more vague “full
coverage” nonsense. Call us today for a quote or to review your
current policy!
