A “full coverage” policy typically has 3 components:
- Liability coverage, which pays for injury to another motorist or damage to another car. Alabama requires that drivers have a minimum amount of $25,000 in liability coverage.
- Collision coverage, which pays for physical damage to your car if you run into something, such as another vehicle or a tree.
- Comprehensive coverage, which pays for physical damage to your car that is not the result of a collision. For example, comprehensive coverage might pay for damage resulting from vandalism, severe weather or theft.
Full Coverage Auto Insurance Can Leave You Uninsured
No matter what type of auto insurance policy you choose, you want to understand what coverages it includes. Some consumers who buy a “full coverage” policy are later shocked to find out that they’ve got less insurance coverage than they thought.
Just because you ask for “full coverage” does not mean you are covered for everything, and it definitely does not mean you are carrying enough coverage. Contrary to what the term suggests, “full coverage” policies do not include many types of coverage that you may need. Other benefits that frequently are not included in “full coverage” policies include: