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If your car is financed, you need to have full coverage auto insurance, or your bank will buy its own very expensive insurance — and make you pay for it. But are you “fully covered” when you ask for full coverage auto insurance? This blog post will tell you what you need to know about full coverage.
Does “full coverage” mean the insurance pays for everything if you have a claim — without any deductibles, exclusions, and no dollar limits on coverage — so if you hit LeBron James with your car, and he cannot play pro basketball again, your auto insurance policy will pay the millions of dollars you owe him?
Nope, “full coverage” does not exist. You will never see that wording on your car insurance policy.
Full coverage is a slang term for car insurance coverage to pay for damage to your car, in addition to the auto insurance coverage required by your State’s laws.
So, when you call an agent and ask for a quote for full coverage, expect follow up questions, like what are your deductibles, limits of liability, medical coverage, do you need coverage for the cost of rental car if you have a claim, etc.
A good agent will ask you questions about your coverage. But there are plenty of agents who will quote you “full coverage” without asking you a question. These agents may be quoting you with the lowest liability coverage and the highest deductible to try to get you a lower rate than you have now — but you are not getting a better price, only possibly a lot less coverage.
Beware insurance agents who give you a price without discussing the details of your coverage.
Your auto insurance declarations page lists all your coverage, and will have all the information you need to get accurate price comparisons from other auto insurance companies. You are mailed a new declarations page every time your policy is due for renewal. If you do not have your current auto insurance declarations page, call your agent/insurance company, and they will send it to you.
When shopping for better rates, make sure all insurance companies quote you the same coverage. Click this link to my website explaining with shopping tips to help you choose the best coverage for you. See this blog post to decide .
Many people pay too much for their insurance because they never shop for better rates, or if they do shop, they don’t check the rates of enough companies. For a lot of people, the best auto & home insurance companies are the ones with the coverage they need at a lower price. With auto & home insurance, you don’t get better service or coverage because you pay more. Some of the best companies have competitive rates. Some companies charge twice as much as others for the same coverage. But no single company has low rates for everyone. You have to shop with all the leading companies, to find the company with the best coverage and best price for you. The ad below will take you to links to get online quotes from leading Home, Auto, Health, & Life insurance companies in your area. Choose the type of insurance, put in your zip, and start shopping now!
Are you “fully covered” by your auto insurance? Tell me about it. Please leave a comment on my . Follow me on Twitter for important insurance consumer news and new blog entries at .
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