When you get behind the wheel of the car, you are taking on the responsibility that it is very possible you will have to deal with the potential of a car accident at some point in your life.  None of us like to think about that point, but it is something that realistically, we need to think about.  One of the best and most important things to have your disposal is the proper auto insurance policy so that you are ready to take on whatever happens.  It’s piece of mind, essential for making sure you’re properly prepared financially, and it’s the law.  So, what exactly are the pieces of the auto insurance policy, then? 

Here are some components of an auto policy

Full Coverage

While it seems as though it covers literally everything that could possibly happen related to your car, full coverage actually is not complete.  That’s because it doesn’t need to be.  When you’re considering full coverage for your car, however, you’ll be happy to learn that it is all that you would need for all of your typical auto-related needs.  It covers the following situations/incidents.

No-Fault Insurance

This is often state-required when getting insurance, and this coverage is going to cover injuries and property damage in an accident that is ruled as one that you didn’t cause so you won’t be paying it out of your own pocket.

Collision Coverage

This kind of insurance will pay for damages to your vehicle in an accident that are specific to a collision between you and another car, or you and a telephone pole or tree or fence, etc.  It will also pay you the amount of your car value, if it is determined that the fixes will be over that amount, minus the deductible. This usually helps with the down payment or purchase of another car.  Keep in mind though, if you have a brand new car, the value is depreciated the minute you drive if off the lot, so you may want to consider Gap coverage.

Comprehensive Coverage

This final kind of coverage is specific to vandalism or theft, or anything else that can occur to your car that is not directly involved in an accident.  Similar to the Collision Coverage, this will repair or replace the car up to the worth of the car itself, minus any deductible.  This is often required for those that are leasing cars or have a lienholder.

These kinds of coverage typically exist in a package for auto insurance that labelled as Full Coverage, but there are other kinds of add-ons that you can look at too, if there are other situations that you are thinking may arise that won’t be covered.  This is why it is helpful to have and keep a good rapport or relationship with your insurance agent.

Some drivers prefer to stick with solely the No-Fault Insurance option, and others will do a combination of the kinds mentioned above.  A lot of it comes down to personal preference and, of course, budget in terms of the premiums for auto insurance.  When in doubt, Full Coverage is absolutely a great way to know that all of the bases are covered in terms of making sure that you are protecting yourself, those around you, and your investment (aka: your car).  However, again, contact your insurance agent, or begin a relationship with Paula Smith Insurance and we will go over all of the options available to you and your personal situation. Contact us at (281) 488-8880.