Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Auto Insurance Coverage Types and other Car Insurance topics.
Liability insurance - the part of your insurance that pays for someone else's medical bills and car repairs - is the only auto insurance coverage type required by the state. If you have a lease or note or loan on your car, your car dealer is going to make sure you have full coverage auto insurance. If you are coming up to the end of your loan you are probably wondering when to drop full coverage auto insurance, because your auto insurance premium (price) will then go down a great deal.
Full coverage insurance is the term for the auto insurance coverage types called comprehensive and collision.
* Collision Coverage - This coverage does just what it says - protects your car in case of a collision that is your fault. Even if you collide into a stationary object like a tree, collision will be the coverage that repairs your vehicle. All you have to pay is your deductible.
* Comprehensive Coverage - It is called comprehensive because it covers almost everything that collision does not. If a tree falls on your car, if a rock hits the windshield, comprehensive is the coverage that will repair or replace your car. All you have to pay is your deductible.
Even though it is referred to as Full Coverage, it doesn't cover everything. Make sure to read your policy for any exclusions and make sure you understand what is and is not covered in your policy.