Sometimes we meet people who are upset because they bought a “full coverage” policy, only to find out…some stuff isn’t covered! Unfortunately, “full coverage” just doesn’t mean what people think it does. Typically these policies, which carry higher premiums than the state’s minimum insurance requirement of $25,000 in liability coverage, will offer full coverage if your vehicle is damaged or totaled after a collision. These repair and replacement costs are covered even if the accident was your fault or if it was damaged in some sort of natural disaster, like a tornado or flood.
Now, cars and car repairs are expensive, so this is a good thing to have. However, full coverage insurance won’t necessarily pay your medical costs. If you have no or limited health insurance coverage and an accident was your fault, you may find yourself stuck with the bill. However, you can add medical payments coverage to your current policy, and this is generally a good idea.