Insurance 101: Is it REALLY Full Coverage Auto Insurance?
Our last blog article broke down ALL the details of liability insurance for your auto--which as we discussed is your state required insurance coverages and will pay for damage to the other person's vehicle OR injuries. This time, let's talk about YOUR car...how do you have coverage for YOUR damages?
Many times, the coverage for your own vehicle, is called FULL COVERAGE. However, this is NOT completely accurate as NO insurance company will write a policy that covers a vehicle for every issue imaginable. However, in addition to liability insurance & medical payments there are additional coverages available for you that will protect your vehicle after an at-fault accident, acts of God (such as animal collision, hail, etc.), and even if you are hit by an uninsured driver.
Let's break those down a bit!
Collision Insurance: Collision insurance is just what it says. It provides coverage if you COLLIDE with something (well, except for an animal, but we'll cover that in a bit). This coverage will pay for the damages to YOUR vehicle if you collide with another car, building, fence, sign, etc. Standard collision coverage will pay for any repairs up to the fair market value of your car. In addition, if you are in the unfortunate circumstance of being hit by an uninsured driver, collision insurance will help pay for your damages in that instance as well.
Comprehensive Insurance (Other than Collision): Comprehensive insurance is another one of those inaccurately worded coverage...BUT...for the most part, comprehensive insurance covers damage done to your car in some way other than a collision. This includes animal collision, hail damage, flood, theft, vandalism, or windshield damage from a flying object. Like collision, comprehensive will pay up to the fair market value of your car.
In addition to collision & comprehensive coverage there are two other coverages that you may want to consider adding to your policy---but these are completely OPTIONAL. They are very minimal in cost, but can definitely give you a little bit of added peace of mind as you're driving each day.
1. Roadside Assistance: This coverage can vary GREATLY across insurance companies but the most basic of policies provides towing service due to a vehicle breakdown. This coverage can also include things such as lock-out services, gas delivery, etc. This is basically like AAA but provided direct through your insurance carrier.
2. Rental Reimbursement: If you are involved in an accident, it's likely that you don't have access to another vehicle. Rental reimbursement will provide for a rental car if you are in a covered accident. There is a daily or monthly limit on the dollar amount paid through this coverage, and rental reimbursement coverage is not available simply because of vehicle breakdown. The specifics of rental reimbursement can also vary across insurance companies, so make sure to ask us or read your policy for the details.
So, there you are---now you know just a LITTLE bit more how to protect yourself, and your vehicle.
Not sure if you've got sufficient coverage? Have even more questions? Make sure you contact our office @ 417-258-2541 or click the CONTACT US button to reach out!
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