The 7 Steps of Obtaining Full Coverage Auto Insurance...

Everything You Need To Know About Full Coverage Auto Insurance - But Were Afraid to Ask!

Full coverage auto insurance is the term used by insurers to refer to their policy that gives the most comprehensive protection.  Car insurances have different types of cover as well as varied limits.  This type of policy combines various covers under the following general categories:  liability and physical damage. 

Below is an important video from eHow and how they explain wha full coverage automobile insurance is and why and when you need it?


Liability includes financial protection you get against damages or injury to others and/or their vehicles such as with the following coverage:  bodily injury, property damage, and personal injury where applicable. 

Physical damage, on the other hand, includes the following coverage:  collision and comprehensive.  Collision protects you against road mishaps when damages occur out of direct impact when your vehicle collides with another.  Comprehensive covers for other damages outside of collision such as those resulting from vandalism and theft. 


You have to understand that getting a full coverage auto policy does not absolutely cover everything for the following reasons:

  • You can get a full coverage car insurance even if the amount you insure for liability is the minimum amount required by your State.  You see, the minimum liability insurance component of the policy is State-dependent, and each State has set its own minimum amount.

  • Outside the State-dependent required minimum for liability, the amount of coverage for your full auto policy is your own choice. Let’s say you decide a $50K      liability insurance in your policy, then your insurer will shoulder up to $50K; it now becomes your responsibility to pay for the excess if there is a need. 

You must carefully assess your need before you decide to set the amount of coverage for your full car insurance policy.  Depending on the coverage amount vis-a-vis the extent of damage or liability, your policy may or may not adequately cover your needs when you have to make a claim. 

The 7 Steps of full coverage auto insurance

To get the most benefits from full coverage auto insurance that is sufficient to protect your finances when the time comes you have to make a claim, follow these steps:

  1. Understand that to get a full coverage, you must satisfy the minimum liability      insurance requirement of your State as well as include collision and comprehensive insurances in the policy. Check your State’s Department of Insurance to determine minimum requirement.  You may want to increase the amount depending on your risk.  This coverage protects you in instances you are at fault.

  2. Assess your insurance needs carefully.  When you know what your needs are, it is easy for you to determine if you are getting the best benefits from your policy.  For instance, if you own a brand new car, it is wise to get a full protection for collision as well as comprehensive cover.  If you have an old, depreciated, or used car, you can choose to lower the amount, or skip the collision coverage.

  3. Search online, and create a list of possible insurance companies you would like to get your full coverage car policy. This is regardless whether you have an existing insurer or not.  The list will serve as your reference to get your car insurance quotes. Getting quotes will enable you to compare offers that will lead you to the best full coverage policy. 

  4. In coming up with your shortlist, make sure that you verify reputability of the companies not only in terms of making the policy affordable, but also in terms of their reputation and credibility in processing claims.  You want an insurer that is financially stable and is upfront and easy to deal with during claims processing. 

    You can visit your State’s Department of Insurance website, as it publishes a list of reputable insurance companies operating in your locality.  You may also want to verify legitimacy through the Better Business Bureau (BBB).  To determine stability and credibility, you can check the rating from reporting agencies such as A.M. Best, Standard and Poor’s, Wiess Research, Duff and Phelps, or Moody’s Investors Service.  These are some of the leading agencies that publish financial rating and strength of insurance companies. 

  5. When you are able to come up with your shortlist and get quotes from your      probable insurers, it is now time to get further details or verify the quotes by speaking to a live representative. You see, the figures you see on the quotes are not final; they are only close estimates of your premium rate based on the information you have entered in their prescribed form. Comparing quotes will enable you to pick one to three insurers that can most likely give you the best policy. 

  6. When speaking to a live representative, it is best to ask all details you need to make the best decision.  You may also want to request for another quote despite your previous online quote.  The new quote should reflect what you have discussed with the representative. Your discussion and quote should also include possible discounts to lower premium cost such as the following: installation of security devices in your vehicle, clean driving record, higher deductible amount, availing courses on defensive driving, and others. 

  7. Compare the quotes and see which among your shortlisted insurers can give you the best deal.  Focus not just on premium cost, but also on the terms and conditions especially where claiming is concerned. This will prevent nasty surprises during the      claiming process. Decide in favor of the company that can meet your preferences best. 

Below is a video on how to compare the many variances in auto insurance.

With all information and resources you can get conveniently on the web, you can always make sure that you get the best benefits from your insurance policy.  You just have to do your part before you decide and you will surely gain much from getting a full coverage auto insurance