Home » Auto Insurance » What is full coverage auto insurance and why would I need it?

In simple words, full coverage auto insurance is meant to protect both you and your assets in the event that you are involved in an accident that injures another person. Some people may see it as a life insurance policy, however, full coverage insurance is even more than that. For instance, if your car is damaged beyond its actual cash value, the insurance company is forced to reimburse you with the actual cash value. You can use those funds to purchase a new vehicle, or for any other purposes.

Full coverage auto insurance comes with three options: comprehensive coverage, collision coverage and liability coverage. The last one can be considered as the most basic insurance coverage required by law. Car InsuranceThis insurance coverage is represented by a package that pays the other driver for any damage caused by a car accident for which you are held liable. This includes both property damage and bodily injury liability. Basically, the insurance policy takes care of the other driver by paying for their medical bills and repair of their vehicle.

The question is, who’s going to pay for your medical bills and car repairs in case you are involved in an accident? As we’ve seen, basic insurance policies cover all the expenses for the other driver, but none of yours. That is why full coverage insurance comes with a second option: collision coverage. Collision coverage covers expenses for your vehicle’s replacement or repair. The beauty of collision coverage is that it doesn’t matter who’s responsible for the accident, your car will be repaired anyway.

Finally, the third component of a full coverage auto insurance plan is comprehensive coverage. This option covers everything that may happen to your vehicle, except collision. Expenses associated with damage caused by natural disasters, loss or theft, or any other non-collision disasters, are all covered by the comprehensive coverage plan.

If you want to find more information about auto insurance, life insurance, or any other type of insurance, contact Nationwide Insurance – Barfield Insurance at (321) 332-7090. They are one of the largest insurance agencies in Orlando FL.