What is full coverage auto insurance?

The importance of having the best military auto insurance cannot be overstated. Full coverage auto insurance can be especially beneficial for veterans as it often provides comprehensive protection against various risks. 

Not only does it cover the cost of repairs and medical bills resulting from an accident, but it also provides financial protection in the event of theft or other natural disasters. But what is full coverage auto insurance? 

In this guide, we’ll explore the definition of full coverage auto insurance, why it’s an excellent option for veterans, and how to choose the right full coverage auto insurance policy for your needs. Let’s dive in.

Full Coverage Auto Insurance Explained

Full coverage auto insurance may sound like an all-encompassing policy that guarantees your vehicle is always safe and covered. But, unfortunately, there is no such thing as a full coverage auto insurance policy.

So what does full coverage auto insurance mean?

Full coverage typically refers to a combination of auto insurance policies that increase your vehicle’s protection. These policies are often combined to create a package of coverage that can protect your car in more ways than one. 

The most common auto insurance policies included in full coverage packages are liability, comprehensive, and collision insurance. What is not included in full coverage car insurance? There are some add-on insurance products that are not included, but the basic coverage types are included.

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Types of Auto Insurance

To better understand full coverage auto insurance, it’s important to be familiar with the most common types of auto insurance coverage options for veterans. So let’s take a quick look at each.

Liability Auto Insurance

Most states require drivers to have a certain level of liability insurance to operate a motor vehicle legally. Liability auto insurance coverage has two parts:

• Bodily injury coverage: This coverage pays for medical expenses and other costs associated with injuries sustained in an accident caused by you.
• Property damage coverage: This coverage pays for damage to other people’s property, such as another vehicle or a structure, caused by you.

Liability auto insurance will not protect your vehicle in the event of an accident — it only covers damages and injuries caused to other people or their property.

Comprehensive Auto Insurance

Comprehensive auto insurance provides more coverage than a basic liability policy. It protects you against financial losses in the event of an accident, theft, or other damage. 

In addition to covering damages to other people’s property due to an at-fault accident, comprehensive coverage protects from losses caused by vandalism, fire, weather events such as floods and hail, and even animal collisions. 

Comprehensive coverage may also include medical payments for you and your passengers in the event of injury during a covered incident. 

Although comprehensive insurance costs more than basic liability coverage, it can provide much-needed security for drivers in case of costly vehicle damages or medical bills due to accidents.

Collision Auto Insurance

Collision coverage protects you if you are involved in an accident with another vehicle or hit an object like a tree or pole. This coverage pays for repairs or the full value of your car if it’s totaled in an accident, regardless of who is at fault.

Collision coverage is typically required if you have a loan or lease on your vehicle. However, if you own your car outright, collision coverage is optional.

Uninsured/Underinsured Motorist Coverage (UM/UIM)

Uninsured/underinsured motorist coverage pays for medical bills and other damages if you are injured in an accident caused by an uninsured or underinsured driver.

This type of coverage is invaluable, even though all motorists must have at least minimum auto insurance. According to the law in most states, many drivers either don’t carry it or carry too little.

Rental Reimbursement Coverage

Rental reimbursement coverage is optional auto insurance that helps you if your car is damaged in an accident. It pays for renting another vehicle while yours is being fixed, either for the duration of the repairs or an agreed-upon amount of time. 

Provided that you have documentation from a rental car company showing you rented a vehicle due to your car being damaged in an accident, this coverage can help protect your finances. 

Unfortunately, not all insurance companies provide rental reimbursement coverage. Check with your insurer to see if it’s available to you.

Personal Injury Protection (PIP)

Personal injury protection (PIP) pays for medical expenses and lost wages due to an accident, regardless of who’s at fault. It also covers rehabilitation and funeral expenses in some states. 

Medical Payments Coverage (MedPay)

Medical payments coverage, or MedPay, is an optional coverage that helps pay for medical bills incurred in an accident. This coverage generally pays for medical expenses, including hospital bills and medical treatment costs. Some policies may also cover funeral expenses in a fatal accident.

Factors That Determine Full Coverage Auto Insurance Rates

The cost of full coverage auto insurance depends on several factors. Here’s an overview of what affects the cost:

State Requirements & Minimum Coverage

Each state has minimum auto insurance coverage requirements. Full coverage may include more than just liability and comprehensive, depending on your state. Some states require additional types of coverage, such as Uninsured/Underinsured Motorist Protection and Personal Injury Protection (PIP).

The Vehicle You Drive 

If you own an older model or your car is considered a “high-risk” vehicle (such as a sports car), your premium will likely be higher than someone who drives a more standard model. That’s because these vehicles are more likely to be involved in an accident or stolen. Hence, insurers want to make sure they’re covered if something should happen.  

Your Driving Record 

Traffic violations, at-fault accidents, and DUIs affect your full coverage auto insurance rates. The better your driving record, the lower your full coverage premium, as insurers consider you less risky. Learn about how to get the best auto insurance for drivers with a DUI.

Demographic Information

Your age, gender, marital status, and zip code all affect full coverage auto insurance rates. Generally, older drivers and married couples will see lower full coverage rates, while single drivers and younger drivers will usually see higher full coverage rates.

Credit History

Insurers view drivers with higher credit scores as a lower risk. As a result, they may offer lower full coverage insurance premiums than drivers with poor credit scores.

Benefits of Full Coverage Auto Insurance for Veterans

As a veteran, you may face more risks on the road than the average driver due to physical disabilities or medical conditions resulting from your service. A recent study found that military members who had been deployed had a 12-36% greater risk of an accident than those who had not.

With such high risks, full coverage auto insurance can provide more protection for veterans. 

Why You Need Full Coverage Auto Insurance as a Veteran

Full coverage auto insurance can help protect veterans from the full impact of an accident or other unfortunate events.

For example, if you experience property damage due to a crash caused by someone else’s negligence — such as another driver hitting your vehicle — your full coverage policy can help pay for repairs or replacement services if needed. 

The types of coverage most beneficial for veterans include liability, comprehensive, and collision. Liability coverage can help pay for the medical costs and property damage of other drivers involved in an accident with you. 

Comprehensive coverage helps cover damage to your vehicle that is not caused by a collision, such as fire, theft, or vandalism. Finally, collision coverage pays for repairs or replacement of your car in the event of an accident.

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What to Look for in a Full Coverage Auto Insurance Policy

As a veteran, choosing the right full coverage auto insurance policy is essential. Here are some suggestions on how to choose full coverage car insurance.

Comparing Rates 

When buying auto insurance as a veteran, the first step is to compare rates and coverage options. This means researching different companies and policies to find the one that offers the most value for your money. 

Ensure you understand what each company covers and doesn’t cover before making any decisions. Some companies may offer better rates but have fewer features or services than others, so it pays to shop around. 

Deductibles and Limits 

Another important factor when choosing a full coverage auto insurance policy is the deductibles and coverage limits. 

An auto insurance deductible is the amount you must pay out-of-pocket before an insurance provider pays for any damages caused by an accident or other incident. 

Higher deductibles usually mean lower monthly premiums but also higher overall costs in case of an accident or incident where you need to use your policy’s coverage. On the other hand, lower deductibles mean higher monthly premiums but lower overall costs if you need to file a claim under your policy’s coverage. 

Limits refer to the maximum amounts an insurance provider will pay per incident or claim under a given policy. Higher limits usually mean higher monthly premiums but more protection if you need to use your policy’s coverage in case of an accident or other incident. 

Lower limits typically mean lower monthly premiums but less protection if you have a large claim under your policy’s coverage.  

Negotiate Terms 

Once you have selected a few potential policies, it is time to negotiate terms with each company to suit your individual needs as a veteran driver. When negotiating terms, consider the following factors:

• Level of service offered: Is the company willing to provide a full range of services, such as roadside assistance, rental car coverage, and other optional features? Will they work with you to customize your policy and coverage to fit your unique needs?
• Discounts: Does the company offer special discounts for veterans or military families?
• Payment plans: Does the company offer flexible payment plans that might make your monthly premium more affordable?

Negotiating terms can help save significant amounts of money on auto insurance policies over time, so research beforehand to get the best deal possible.

Full Coverage Auto Insurance: The Bottom Line

Full coverage auto insurance is an important investment for any veteran or military family. It provides comprehensive protection beyond basic liability policies by providing additional protections such as collision, comprehensive, and uninsured/underinsured motorist coverages. 

Additionally, comparing rates and negotiating terms can make full coverage auto insurance more affordable while ensuring you have the protection you need in case of an accident or other incident.

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