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What is 'Full Coverage' Auto Insurance?

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Does 'Full Coverage' cover everything?  What is included when I buy Full Coverage car insurance?

Often times when quoting an auto insurance policy, customers ask us for “Full Coverage”.  North Carolina has no legal definition for Full Coverage so it can mean different things to different people. 

Usually the term “Full Coverage” implies that you wish to purchase comprehensive and collision coverages in addition to liability and uninsured motorist.  Collision covers your vehicle for damage caused in an accident.  Comprehensive (aka Other Than Collision) covers your vehicle for damage caused by anything other than a collision.  Comprehensive covers things such as theft, animal strikes, flood damage, acts of god, etc…  Also, you may have a deductible on your policy.  Common comprehensive and collision deductibles range from $100 to $1,000 and in some cases even higher.  We find that most drivers opt for a $500 deductible.  Collectively comprehensive and collision coverage are often referred to as 'physical damage' coverage and policies that contain both liability and physical damage coverage are often called 'full coverage' policies.

Other coverages that may or may not be included would be rental car reimbursement and towing coverage.  Rental car reimbursement (aka Transportation Expenses) covers the cost up to the amount specified in the policy for a rental car if your car is being repaired due to a covered comprehensive or collision claim.  Because the term Full Coverage can mean different things to different people, it is important to specify whether or not you wish to have these coverages. 

'Full Coverage' does not usually imply that your policy includes Medical Payments coverage.  Medical payments will cover you and your passengers injuries when in an accident.  Medical payments coverage is typically very affordable and in North Carolina it is offered in amounts from $500 to $5000 per person. 

When shopping around for insurance, TGI recommends that you know and understand what each coverage term means.  It is a good idea to specify which coverages you want to carry and which you wish to exclude.  And of course, an agent will always be happy to make recommendations and help you pick what is right for you.

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