What is Full Coverage Insurance
What is Full Coverage Insurance? There is not a black and white definition for full coverage insurance. Typically full coverage insurance in Arizona includes liability coverage, collision coverage, and comprehensive insurance. An individual can also opt for medical payments coverage as well as uninsured/underinsured motorist coverage.
Liability insurance is the only type of coverage that is mandatory. In Arizona, as of July 1, 2020 the minimum liability policy includes $25k per individual/$50k per accident of bodily injury coverage and $15k for property damage. Liability insurance covers injuries and property damage that either you or someone driving your vehicle has caused. Remember, this coverage does not cover your injuries or damage to your vehicle.
Collision Coverage will cover the property damage to your vehicle regardless of who's at fault for the crash. It is very important to have collision coverage in additional to liability insurance in the event you are at fault for a crash, or you think the other party is at fault but their carrier is denying liability. Collision coverage ensures you have the ability to repair your vehicle especially if it is not drivable. If you take advantage of your collision coverage when you are not at fault for a crash your insurance carrier will typically subrogate against the at fault parties insurance carrier and eventually reimburse your deductible.
Comprehensive coverage refers to coverage for your vehicle when it sustains damage in a scenario other a car accident, for example a natural disaster such as a hail storm. Full coverage can also include medical payments coverage. This is coverage that is available to pay for medical expenses you incur as a result of being involved in a crash, for example, going to the hospital or urgent after being involved in a crash.
Additionally, there is uninsured/underinsured motorist coverage. Uninsured coverage applies when you are involved in a crash with an at fault party that does has no automobile insurance coverage. Underinsured coverage applies when the at fault parties policy limit is less than the full value of your claim. Generally, when you've been involved in a crash and you're asked about whether you have full coverage the attorney is seeking to know whether you have collision and uninsured/underinsured coverage to ensure there are no coverage issues in your claim.