Full Coverage Auto Insurance: What It Is and Why You Need It
At Schneider Insurance Agency in Gahanna, OH, we recognize that you are seeking the most comprehensive coverage to protect your valuable vehicle as a car owner. Full coverage auto insurance can provide the peace of mind you need, ensuring your vehicle is protected in any circumstance.
When purchasing a new car, particularly if financing it through the dealership, a local bank, or a nationwide finance company, most will require "full coverage" insurance. But what exactly does that entail?
Understanding Full Coverage Insurance
Full coverage typically refers to a blend of comprehensive and collision coverage. Finance companies require full coverage to ensure that the vehicle can be repaired to its original condition in the event of any auto accident – whether you are at fault or not. This gives them confidence that should they have an accident and lack adequate insurance for the repairs, they will not default on their auto loan.
Collision Coverage Explained
Collision coverage pays for damages to your vehicle in the event of a collision with another vehicle or a solid object like a building or lamppost. You will need to pay a deductible, which is a predetermined sum agreed upon when you initiated your policy or endorsed it, whether that’s $500, $1000, etc. For instance, if the repair bill is $4000 and your deductible is $500, you would pay the first $500, and the insurance would cover the remaining $3500.
The Role of Comprehensive Coverage
Comprehensive coverage, also known as ‘Other Than Collision’ coverage, covers an extensive array of damages and losses to your vehicle, such as theft, fire, flooding, hail damage, falling objects, and collisions with animals. For example, if your car is stolen, caught in a fire, or flooded, comprehensive coverage would generally cover the cost of repair or replacement, less your deductible. Just like with collision coverage, you would be held responsible for paying a deductible.
We are Here to Help.
Speak with your insurance agents to fully understand full coverage and get a detailed list of what’s included and excluded in your auto insurance. At Schneider Insurance Agency in Gahanna, OH, we have the expertise and experience to guide you in making the most informed decision about insuring your vehicles, fulfilling your lienholder’s needs, protecting your wallet, and safeguarding your family. Call us today at (614) 471-8444. We are here to help.
