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What Is Full Coverage Auto Insurance | Insurance 101 - YouTube
Channel: ALLCHOICE Insurance
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- What is full coverage auto insurance?
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We hear the term used in a
variety of different ways
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with different meanings
each and every time.
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So today we're gonna clear that up for you
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in today's video.
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Hey folks, Jack Wingate here,
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and on this channel we
help individuals, families,
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and businesses save
money on your insurance,
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help you understand your
insurance just a little bit better
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and let you know what's going
on in the insurance industry.
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And today we're discussing a topic
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that more people than
not have questions about
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and that is full coverage auto insurance.
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Yes.
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When we ask people that
come to us to provide them
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with advice or pricing for auto insurance,
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we typically ask, well, do you
know what coverage you have?
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And more times than not, they go, well,
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I've got full coverage
or they might not know.
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And they go, well, I want full coverage.
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Full coverage means something different
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to every single person,
every single agent.
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So today we're gonna go through exactly
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what it means and what it doesn't mean.
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And to start with, with
personal auto insurance
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there are generally two
sections of the policy.
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In North Carolina you're
required to have section one
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which is liability coverage.
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Liability coverage
consists of bodily injury
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and property damage and that
protects the other parties
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in case you're in an
accident and it's your fault
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and you do bodily injury damage to them,
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or you damage their property.
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I.e. either car or God forbid,
you crashed into their house.
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That's the first part of auto
insurance in North Carolina.
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The second part is
physical damage coverage.
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Physical damage coverage
covers damage to your vehicle
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and generally there are
two components of that.
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Comprehensive slash other than collision
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and then collision coverage.
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Comprehensive coverage or comp coverage
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is also known as other than collision,
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covers the damage to your
vehicle when it is damaged
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by something other than
an at fault collision.
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So generally speaking,
you're looking at a rock
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hit your windshield.
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Maybe you hit a deer or another animal,
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maybe a tree falls on your car,
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acts of God, things of that nature.
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And then obviously collision
is you actually colliding
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with something most of the time,
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it's in an at fault accident,
but I guess you could run
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your car into your own house
and damage your vehicle.
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That way it's technically
your fault, but it's not fault
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like most people would say
like I hit someone else.
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So that covers the damage to your vehicle.
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And those are the two main
components of the auto policy,
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the liability bodily
injury property damage,
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and then the physical damage portion,
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which is comprehensive and collision.
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And to many people that
means full coverage,
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but to others, it doesn't.
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And here's why there
are some other sections
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to the policy that you can have.
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The first part would be medical payments,
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medical payments on a policy covers you.
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It protects you and any of your
passengers that are injured
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in, on, or around a vehicle,
completely optional.
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Most of the time people
have medical payments.
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Generally you see about a $2,000 limit.
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We internally always use
5,000, but again, optional.
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So if someone was referring
to having full coverage,
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you would maybe think to
include medical payments,
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'cause that would be full coverage.
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Then you have extended
transportation slash
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what some people call
rental car reimbursement.
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So that coverage helps you
in case your car is damaged
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in an at fault accident, so your fault,
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and you need to rent a car while
your car is being repaired.
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That is extended transportation
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slash rental car reimbursement.
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And then you have towing and labor.
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Towing and labor is a reimbursement plan
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where if you have to have your car towed,
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you can submit the
claim for reimbursement.
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So some people consider
having full coverage,
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meaning liability, physical damage,
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i.e. comp and collision, medical payments,
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and then towing labor and
extended transportation.
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They say, that's what full coverage means.
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Then you have to have uninsured,
underinsured, motorist,
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bodily injury, and property damage.
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This is just part of the
policy in North Carolina.
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You can't really choose or exclude that.
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And that covers you in
case someone hits you
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that doesn't have insurance or
doesn't have enough insurance
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and causes bodily injury.
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And in the case of uninsured
motors, property damage,
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it covers the damage to your vehicle.
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If someone hits you that
doesn't have insurance.
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So again, kind of part
of the policy just there.
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And if you have that plus
liability plus medical payments
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plus physical damage, comp and collision,
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plus extended transportation,
towing and labor,
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that could be considered full coverage.
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But with some carriers, you
even have additional coverages.
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You could have enhancement endorsements
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that provide diminishing deductibles,
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or maybe give you accidental
death policies as part of them.
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You can have what's called
repair and replacement coverage,
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which only comes with new
new vehicles, a brand newbie.
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It was not a new to you
vehicle, but a new vehicle.
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And if you have that,
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that could be considered full coverage.
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So the point of all of this
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is that there is no one
definition for full coverage.
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So when you are looking for
auto insurance coverage,
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make sure that you reach out to someone
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who is gonna explain to
you your different options,
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let you know what each
of the coverages means.
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And then you can decide for yourself
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what full coverage means to you.
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Hey guys, I hope this has been helpful.
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If you have any questions,
please reach out to us
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and until next time we'll see you later.
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