When I ask my clients about the amounts and types of coverage they have, I am often told that they have “full” coverage. While I suspect this might be true, you should know that “full” coverage may not mean what you think. Here are some things you should know.
“Full” coverage typically means that your car, truck, or auto has liability coverage and collision or comprehensive coverage. What’s the difference? Liability insurance protects you in the event you’re in an accident that is your fault. If someone is injured or their property damaged, your liability coverage will provide protection and pay compensation to the injured person. In Kentucky, it is mandatory that all motor vehicles carry at least $25,000 in liability coverage.
Collision coverage will pay to have your car fixed, if it is damaged in an accident with another car. Comprehensive coverage will pay to have your car fixed, if it is damaged by something other than an accident, say a falling tree branch, theft, or vandalism.
None of these coverages protect you in the event you are injured by an uninsured driver or a driver who carries insufficient insurance. Uninsured and underinsured motorists coverage are coverages that you purchase to protect yourself. Be sure to tell your insurance agent that you wish for these coverages to be included on your policy. Don’t accept claims that you’re “fully” covered. Make sure to specifically ask for these types of coverages and make sure they are provided by your agent. If your current policy does not offer these benefits it might be wise to call you agent and have them included.