What is insurance?

What coverages do I have to buy?

What does "full coverage" mean?

How do I file a claim?

What happens after I file a claim?

Why do I have to pay my deductible when the other party is at fault?

Why did my adjuster deduct for betterment?

What is comparative negligence?

Why is my vehicle a total loss?

How will the insurance company settle my total loss?

What does "full coverage" mean?
"Full coverage" does not mean every possible mishap or part on your vehicle is covered. The term was coined many years ago and has not kept pace with most consumers' expectations. When you ask for full coverage, you will get liability, personal injury protection, collision, and comprehensive coverages. You may also get (please verify this with your agent) uninsured and underinsured motorist protection. These coverages give you financial protection for the following mishaps:

Liability insurance pays for bodily injuries and property damages of owners and occupants of other vehicles or physical property when you are at fault.

Personal injury protection, which is also called "no-fault insurance," covers you and the occupants of your vehicle for bodily injuries no matter who is at fault.

Collision insurance pays for damages to your vehicle when you hit another vehicle, strike an object or barrier, hit a person, run off the road, or overturn your vehicle.

Comprehensive insurance pays for non-collision mishaps that cause damage to your vehicle such as vandalism, falling rocks, hail, flood, and hitting an animal.

Uninsured motorist protection covers you and the occupants of your vehicle for bodily injuries when the other driver is at fault and does not have liability insurance.

Underinsured motorist protection covers you and the occupants of your vehicle for bodily injuries when the other driver is at fault and does not have enough liability insurance to cover all of your medical expenses.

You need to know full coverage does not include rental car reimbursement when you file a collision or comprehensive claim or towing when you have a mechanical failure. Most insurance companies offer these coverages, but you must add them to your policy with a rider and pay an extra premium.

In addition, collision and comprehensive coverage is usually restricted to the parts and equipment installed by the manufacturer. If a dealer, previous owner, or you have made alterations to your vehicle (this includes aftermarket parts, custom paint and interior, and stereo equipment) you must tell your agent. In most cases, you will have to itemize the parts and equipment that you want to cover and pay an additional premium.