What Is Full Coverage And Do I Need It?

What is Full Coverage?

When people talk about full coverage, they’re typically referring to physical damage coverage to an automobile. Physical damage is actually made up of two separate coverages – Comprehensive and Collision. Both reimburse you for damages to your vehicle but they apply to different causes of loss.

Comprehensive
Comprehensive covers damage to your vehicle for things that are out of your control, or things considered “an act of God”, like if your vehicle is damaged by hail during a heavy storm. Full glass coverage also falls under comprehensive but is not included by default. Full glass is an additional option that must be requested. If full glass coverage is not requested, damage to glass is still covered but will be subject to your normal comprehensive deductible, typically between $250 and $1000.

Collision
Collision generally covers damage to your vehicle in instances where you were behind the wheel at the time of the accident. If you run into another car (for which you’re at fault) or drive into the ditch, you’ll need collision coverage to get reimbursed for the damages to your vehicle.

What about Roadside Assistance & Rental Reimbursement?
Roadside assistance and rental reimbursement are separate from full coverage and must be added to the policy, if needed.

Do I Need It?

Full coverage is a must if you lease or have a loan on your vehicle. The bank/lessor will require physical damage insurance coverage as a prerequisite to providing you with funding. If you own your vehicle outright, physical damage is a voluntary coverage, meaning you can buy it or just stick with liability only. A third option is to include comprehensive coverage and forego collision coverage. This level of coverage may be a good choice for vehicles that don’t get driven every day. Some things to consider before choosing are:

• Can I afford to replace this vehicle with my savings?
• Is my vehicle already damaged or rusting?
• How does the cost of the insurance compare with the cost of the vehicle?

Contact us at (507) 252-8720 with further questions or if you’d like a free review of your current insurance package.

This information is not intended to suggest or recommend specific coverage selections or limits but rather provide information for you to consider. Always talk to an experienced insurance agent before selecting or changing insurance coverage.