What is Full Coverage Anyway?

Ever wonder what all full coverage on your auto covers? If the law only requires liability, then why pay more for full coverage? Well, it all comes down to this ... what do you need to protect and how much are you whiling to pay?

Auto insurance is like most other types of insurance, the more bells and whistles to more it will cost you. At base the liability portion of your auto policy is the most important. But it has the most limited coverage.
Liability covers you from your family's mistakes. For example if your teenage son dropped his cell phone while trying to text and he rams the Smart car in front of him when he ducks down to pick it up. That would probably be his fail (or in the eyes of a potential lawsuit, your fault) so the Smart car driver would be entitled to you paying his medical bills. If you don't have liability coverage equal to or greater than his medical bills he would possibly sue you for the difference. Liability coverage will cover litigation and damages for the other driver if it is your fault.
Comprehensive (Comp for short) pays for damage done to your auto by flying rocks or missiles, falling objects, fire, theft, larceny, explosion, earthquake, windstorm, hail, water, flood, malicious mischief, vandalism, riot, civil commotion, and hitting or being hit by an animal. This usually has a deductable that you are responsible for before the damage is paid for by your policy.
Collision pays for damage to your vehicle caused by collision (I know, it sounds too simple but that's it!). This also has a deductable that you are responsible for before the damage is paid for by your policy.
Now full coverage is liability plus comprehensive and collision, all in the same package. It covers those around you that may be hurt by your mistakes and it covers the physical damage to your vehicle. But, full coverage on your auto won't pay for maintenance or any damage from lack of maintenance. Full coverage does not necessarily include towing or rental car, so be sure and ask about those. If your vehicle is more than ten years old you should check out it's value, because your insurance company will only pay you up to the value of the vehicle at the time of loss. So if it would take $10,000 to repair your car but it is only worth $2,000, you would get a check for $2,000 and the insurance company would get the wrecked car to salvage (that's what they mean by totaled out).
The most important part of your auto policy is the agent, because he is the one that will help you find what coverage is right for you, and he (or she) will be there to explain coverage when there is a loss. Make sure to buy liability limits that are high enough to protect your assets because sometimes just being legal for less isn't enough.