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Policy Limits Are More Important Than “Full Coverage”

The term “full coverage” isn’t a term used in the insurance industry.

Most people believe “full coverage” auto insurance means they have coverage for collision, comprehensive, and liability. Let’s break down those terms:

  • Collision: Like it sounds, collision is when your car is involved in an accident.
  • Comprehensive: When your car is damaged by something other than a collision, such as vandalism, fire, flood, falling objects, animals, or theft.
  • Liability: If you hit another car or damage another person’s property with your vehicle.

Often, people feel the term “full coverage” means they’re protected if they’re in an accident with an uninsured motorist, or they’re found “at fault” in an accident, or that they have “med pay” on their policy – coverage for medical payments as a result of an accident.

Policy Limits are More Important Than “Full Coverage”

But the important factor to consider is the limits on your policy. Most states require minimum coverage on auto insurance policies, which might cover smaller accidents, but doesn’t offer much protection in more serious claims. The cost of adding additional protection beyond the state minimums is very reasonable compared to the benefit you receive if you need to use that part of your policy.

To learn more about what policy limits are right for you and your family, contact Kelly Miller Insurance Associates at (916) 652-3100 or email info@kellymillerinsurance.com.

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