What is full coverage? Since I began practicing law on December 1, 1976, I cannot tell you how often someone comes to me who has been in a motor vehicle accident. One of the first questions I ask them is if they have Full Tort or Limited Tort. People respond by saying to me “I have full coverage”. They assume that because they have full coverage they have every conceivable benefit that they need or they are entitled to receive under their automobile policy. Unfortunately, many of these people are being misinformed by either insurance companies or insurance agents.
Full coverage, otherwise known as comprehensive coverage, means that if you are in a motor vehicle accident, whether it is your fault or whether it is not your fault, your automobile insurance will pay for the repair or replacement of your automobile based upon its fair market value. If you also purchase rent-a-car coverage, your insurance company may provide you with a rent-a-car for a period of time, generally thirty (30) days, while your vehicle is being repaired. I think that for many people it is good to have full coverage or comprehensive coverage. I personally have it on my automobiles, however, it is only one part of the story.
Your coverages under your insurance policy include any or all of the following:
Wage Loss Benefits
Uninsured and Underinsured Benefits
Every policy has medical coverage with a minimum of $5,000.00. Medical coverage can be purchased for extra money to provide up to $100,000.00 in coverage.
Lost Wage Benefits
Lost wage coverage can be $1,000.00 a month up to five (5) months. The maximum is $2,500.00 a month up to $50,000.00.
You can also purchase funeral benefits up to $2,500.00.
Uninsured Benefits and Underinsured Benefits
This will be the subject of my next article.
I cannot stress to everyone how important it is for each of you purchasing an automobile insurance policy to understand exactly what these coverages are. I would urge you not only to speak to your insurance agent but feel free to speak to your family attorney or someone like myself in order to find out exactly what these coverages are. I feel strongly everyone should have these coverages.
In coming articles I will discuss in great detail each one of these coverages and why it is important. I will leave you with one thought, and that is ask your insurance agent exactly how much more you have to pay for additional coverage. I cannot stress to you how important some of these coverages are and for just a few extra dollars one can have these coverages.
I would urge each of you to please let me hear from you, as I would like to know that these articles are reaching people and you are finding them of some interest and benefit.