Want to protect your sweet new ride?
Learn more about what full coverage car insurance really is and how to get the best policy for you.
You just got a nice new set of wheels. It’s beautiful. Naturally, you want the best insurance policy available to protect it, so you ask your agent for “full coverage car insurance.”
Do you know exactly what you’re getting?
When it comes to car insurance, it’s important to understand what you’re buying. But it’s not uncommon for policyholders to be completely stymied by insurance terms and jargon and end up going with the cheapest quote they could find online.
However, understanding your coverage limits, deductibles, and how insurance works is also crucial to getting the most out of your insurance policy.
And when it comes to full coverage car insurance, it’s dangerous to be uninformed.
There’s No Such Thing As Full Coverage Car Insurance!
You might have heard your friends and family throw around the term “full coverage insurance” before, but insurance agents hate it. Why?
There’s no such thing as “full coverage car insurance.”
In legal jargon, “full coverage” simply means that you’ve chosen to purchase every available coverage with the lowest deductible and the highest limits available.
So what if you end up with that? Sounds like great coverage!
The problem is, most people don’t purchase insurance this way. They equate “full coverage” with Comp and Collision, which is only one type of many available car insurance coverages. This misunderstanding can lead people to purchase more or less coverage than they deserve.
Think about it: if you ask an agent for “full coverage car insurance,” will you end up with their version of full coverage or yours?
Types of Car Insurance
Say you did want to purchase every available car insurance coverage. What would that look like?
Personal Injury Protection (PIP) covers 80% of medical bills and 60% of lost wages for you and any passengers that were injured in the accident. Florida drivers are required by law to carry at least $10,000 in PIP coverage.
Property Damage Liability (PDL) covers damage you cause to another’s property in an accident. Florida drivers are also required by law to carry at least $10,000 in PDL coverage.
Bodily Injury Liability (BIL) covers any injuries that you may have caused to another person (that wasn’t in your car).
Collision covers damage to your car that was caused by a collision with another vehicle, building, mailbox, etc. Comprehensive, on the other hand, covers damage to your car caused by any other (covered) loss.
Uninsured Motorist covers you in the event that the other driver does not have enough coverage to pay for your medical bills.
Finally, MedPay covers your medical bills and lost wages in excess of your PIP limits.
In addition to those listed above, drivers can also purchase coverage for towing and labor, gap insurance, rental reimbursement, and more.
If you simply ask for “full coverage car insurance,” you could be missing out on a valuable conversation with your agent that would help you understand:
- What insurance you need
- What insurance is available
- What insurance you are actually getting.
How Much Coverage Do I Need?
At Harry Levine Insurance, we always recommend choosing the most coverage you can afford.
No, this isn’t to get more money out of you (in fact, independent insurance agents won’t cost you a single penny!). Rather, our goal is to make sure you’re adequately prepared for whatever Life throws your way.
We’ve seen too many people opt for the cheapest car insurance they can find, only to find themselves paying through the nose after an accident. With the recent advances in automotive technology, car repairs are becoming more and more expensive, even for “fender benders.”
But it isn’t just your own property you have to worry about. Paying for the medical bills, lost wages, and property damage you cause to another driver can be extremely costly. (What happens if you crash into a Lamborghini?)
Okay, you know that good coverage is important, but what about deductibles?
In most cases, high deductibles come with relatively lower premiums and low deductibles are associated with higher premiums, but every insurance company calculates premiums differently.
To help you consider whether to go with a higher premium or a higher deductible, ask yourself:
- How much can you afford? If paying a high premium every month is out of your budget, it might be worth risking a higher deductible in favor of a lower monthly cost.
- What is your vehicle worth? If you have an older vehicle, it might not be worth having a deductible that’s more than the car is worth.
- What’s your accident record? If you have a history of getting into a lot of accidents, a lower deductible could be worth it. Just remember, your deductible is often per claim, not per year; this isn’t like health insurance!
The best way to know for sure is to crunch the numbers and discuss it with an independent insurance agent. They’ll have plenty of information and options for you!
The Best Coverage For You
As you can see, there’s no single car insurance policy that’s the right choice for everyone. The policy/ies that are the best option for you depend on a number of things—from your risk level and budget to the value of your vehicle.
The best way to get the most out of your car insurance? Speak to an independent insurance agent.
If you really want full coverage car insurance to give you that extra peace of mind on the road, an independent insurance agent can collect quotes from across the marketplace and find the one with the best value.
On the other hand, if what you really want is good, solid Comp & Collision coverage, they can get that for you, too.
For more than 30 years, Harry Levine Insurance has been proudly providing Central Florida with policies to protect their cars, boats, motorcycles, RVs, and more. If you’re looking for insurance that you can understand and trust, give us a call or visit our website for a free quote.
We can’t wait to meet you!