If I was given a cent for every time a person tells me that they have “FULL COVER” insurance, I would have a lot more. However, did you know that there is NO insurance that fully covers you? Why that phrase? What could you do to be properly insured?
The phrase FULL COVER gives us the peace of mind that we are fully insured. That is why unscrupulous sellers often use it to sell you insurance. In the end, their purpose is to sell, not to help. And using that phrase (since in insurance laws and regulations that term DOES NOT EXIST) they use a half-truth to capture the client.
So: what do you mean by FULL COVER? When an insurance salesperson (REMEMBER: An insurance agent can sell you insurance plans, but a salesperson is not necessarily an AGENT) says this they are referring to your AUTO being fully covered. NEVER the civil damages that you can cause. In what way?
What they call FULL COVER is nothing more than the combination of two protections for your CAR called COLLISION and COMPREHENSIVE.
COLLISION, as the word says, covers all damages (remember, to your car) resulting from a crash or impact against a MOVING object. And COMPREHENSIVE covers all the damages that your car receives due to other events that are NOT the product of a COLLISION that may well be an object that falls on top of your car, an impact against an animal, theft, acts of vandalism… in short, whatever happens to your CAR.
However, these protections are only designed to protect your CAR, they are not made to protect YOU.
Then comes the question: Can I have FULL COVER? The answer is NO, although you can come to have a lot of protection.
If you are at fault in an car accident, you will be responsible for paying for both physical and emotional damages that you cause. That is why there are laws that require you to have auto insurance so that you have at least a minimum of funds to cover what you are capable of causing. It is what is known as LIABILITY protection, which, as the word says, covers the part for which you are RESPONSIBLE.
However, states only require a minimum base. For example, here in Nevada you are only required to have set aside (either in insurance or in cash) at least $25,000 for damages to one person, $50,000 for damages to all the people involved in the accident (that you are at fault for) and $25,000 for damages you may cause to someone else’s property.
As you can see, we are talking about certain LIMITS. What if, the damages caused exceed those limits? The answer in our next blog.
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