You bought a new car and decided to purchase full coverage insurance to ensure your vehicle is protected against the unexpected. You assume your money and assets are fully protected, as the term full coverage implies.
While you have made the right choice to ask your agent for full coverage, it is important to understand that it does not cover everything. In fact, full coverage is merely a term used to describe two types of coverage – collision and comprehensive – that may be added to your policy. They provide broad protection, but can still leave gaps in your coverage that make you open to risk.
Continue reading to learn more about what full coverage auto insurance does not cover.
What is Full Coverage?
As mentioned, “Full Coverage” insurance doesn’t exist. However, what full coverage is often recognized to be is a policy that has at least the state minimum liability coverage plus collision and comprehensive protection for your vehicle. Put simply; this means that you are legally compliant with state law, plus you have the added security of knowing your own vehicle can be repaired or replaced if you are in an accident or if your vehicle is damaged by a covered event, such as a fire or natural disaster. Since your car or truck is a major investment, it is easy to see why having full coverage could provide you with peace of mind.
Additional Insurance Coverage
Unfortunately, having minimum liability limits along with physical damage coverage is not enough to protect your income and assets. There are many other scenarios not covered by basic full coverage auto insurance that could lead to significant, out-of-pocket costs.
Adequate Liability Coverage
Have you considered the financial repercussions if you are found responsible for an accident that injures or kills another person? Not only would you need to repair or replace the other parties vehicle, but you may also be responsible for their medical bills, lost wages, pain and suffering, and more. Add in the cost of legal fees, and your legal liability for that accident could cost you hundreds of thousands of dollars.
Of course, Arizona law requires you to carry liability protection at all times. If you choose to maintain only the minimum amount of coverage, however, you might find yourself relying on your own savings to foot the bill. Arizona’s minimum liability limits are just $10,000 for property damage and $15,000 for a person’s bodily injuries, with a maximum of $30,000 to cover all injury liability in an accident. If actual injuries and property loss exceed the limits on your policy, you would be personally responsible for the outstanding balance.
Personal Medical Bills
When you or your passengers are injured in an accident, the last thing you need to deal with is an influx of medical bills. Optional coverage like medical payments coverage can help cover your medical bills regardless of who was at-fault for an accident.
Have you ever been stranded on the side of the road? What would happen if you locked your keys in your car while on a road trip? Emergency assistance coverage can help pay for a locksmith in the middle of the night or a tire change on the side of a remote road. It can also cover towing and labor charges if your wrecked vehicle needs to be repaired in a shop.
Rental Car Reimbursement
When an accident leaves you without transportation, a rental car may be your only option for getting to work every day. Adding this important protection to your full coverage auto insurance can help reimburse you for temporary transportation while your vehicle is being replaced or repaired.
As you can see, full coverage auto insurance is a good start to quality coverage, but it does not cover everything. For more information or to request your free Arizona auto insurance quote, contact Harnish Insurance Group today. We look forward to serving you soon.