The "Full Coverage" Myth

Billion dollar ad campaigns make auto insurance seem simple and comforting. The message conveyed is that you are in "good hands" because "like a good neighbor" the insurance industry will take care of you. However, would you trust your neighbor with helping you buy the right auto insurance coverage? Chances are your good neighbor is clueless. 

In 2010, The National Association of Insurance Commissioners found in a study that many, many Americans are confused about insurance, including your good neighbor. One startling stat was that 86% of Americans don’t know that, when their liability coverage is 100/300/100, the last figure represents the greatest amount that their insurance company will pay for property damage for an accident.

Which brings me to the myth of "full coverage." It is quite possibly the most quoted phrase by clients in reference to the insurance they own. The notion of "full coverage" is misleading. Despite its overwhelming use, "full coverage" doesn't cover everything, and it's not a phrase the insurance industry uses. 

Typically, when folks use the phrase "full coverage" what they mean to convey is that they have both collision coverage and comprehensive coverage, and that is it. Collision coverage pays for physical damage to your car as the result of your auto colliding with an object, such as a tree or another car. While comprehensive coverage pays for damage to your auto from most other causes, including fire, vandalism, flooding, theft, falling objects, and collision with animals. 

However, if you want rental coverage, roadside assistance, medical payments coverage, underinsured motorist coverage, or additional uninsured motorist coverage, you are going to need to tell your agent you want more than "full coverage." Additionally, you still have to deal with the pesky deductible. The deductible is the amount you are required to pay first before your insurer kicks in. 

Remember that "full coverage" doesn't cover everything. It only covers the basics, without any of the bells and whistles that would potentially provide your family with the help they need if you are seriously injured in a collision.

Ask your insurance agent to explain the details of your coverage, or call our office at (864) 757-0757 anytime. We are here to help.