Thought that having "full coverage" car insurance meant that you're covered for just about anything? Think again.

The Hidden Meaning of the "Full Coverage" Insurance Plan
Insurance companies will often advertise auto insurance with phrases like:
“The Cheapest (and Best) Full Coverage Car Insurance 1," or, “Cheap full coverage car insurance 2 ”.
Although full coverage car insurance sounds good when you’re first buying insurance, it often provides only the minimum amount of coverage required under law – which is not much protection at all.

The Definition "Full Coverage" Insurance
“Full coverage” normally means only the minimum coverage required by law.
The phrase “full coverage car insurance” has no universal meaning. And to make matters worse, it is often misleading. It leads people to think that they and their loved ones are protected to the fullest extent possible in case of an accident (hence the word “full”).
Unfortunately, this is not the case.
Instead, “full coverage” normally means only the minimum amount of coverage required in the state to be legal.
For example, Pennsylvania only requires drivers to have the following minimum liability
insurance amounts to be legal 3 :
$15,000 for injury or death of one person in an accident
$30,000 for injury or death of more than one person in an accident
$5,000 for damage to property of another person
This means that if another driver hits you, their insurance company may only have
$15,000 to pay for your injuries (regardless of the amount of medical bills, lost wages,
pain, and suffering you endure) and $5,000 for damage to your vehicle.
As you can imagine, that simply is not enough if you have been hurt in an accident and your car is wrecked. It also may not be enough to protect you if you are the one at fault.
Pennsylvania also requires auto insurers to provide $5,000 in medical benefits 4 . This
benefit pays for the insured’s medical expenses due to an accident regardless of who is
at fault. But again, if you are seriously injured, this $5,000 medical benefit may not cover
your medical costs.

The More Protective Plan is Optional
Of course, you are allowed to buy higher amounts of liability insurance. You are also
allowed to purchase other types of coverage to better protect yourself – but you are not
legally required to do so. These optional coverages include the following:
Extraordinary medical benefit – provides you up to $1 million more in medical
benefits, regardless of who is at fault.
Underinsured motorist (UIM) coverage - covers you, your passengers, and in
many instances, your family members, if hit by a driver who does not have
enough liability insurance coverage to cover your losses. In other words, this
coverage kicks in to protect you when the at-fault person is underinsured.
Uninsured motorist (UM) coverage – similar to Underinsured motorist coverage
but for instances when the at-fault person has no insurance at all or isn’t able to
be identified, like in a hit-and-run situation.
Stacking - allows you to multiply your Underinsured and Uninsured motorist
coverage by number of vehicles on your policy. For example, if you purchase
stacking and have $100,000 in Underinsured Motorist coverage and have 3
vehicles on your policy, your limit is increased to $300,000.
Income loss benefit - covers a portion of your lost wages as a result of an
accident, regardless of who is at fault.
Funeral benefit - pays for your funeral and burial costs if you die from an
accident, regardless of who is at fault.
Accidental death benefit – pays a monetary benefit if you die from an accident,
regardless of who is at fault.
Collision – covers damage and repair to your vehicle due to a collision with
another vehicle.
Comprehensive - covers damage and repair to your vehicle in instances other
than collision with another vehicle, like striking a deer, vandalism, theft, errant
golf balls, etc.
Rental car reimbursement - provides for a rental car when your vehicle is totaled
or needs repairs after an accident.
GAP insurance – covers the difference between the value of your vehicle and the
amount you owe on it. This protects you in situations where you have “over
financed” the vehicle and owe more on your loan than the vehicle is worth.

Talk to an Expert to Get the Most Out of Your Auto Insurance
Again, these benefits are optional and the list above isn’t exhaustive. Also, the amounts
of these coverages that you can purchase will vary. Many of the optional benefits are
not very expensive either. It is important to note that by purchasing these “optional”
coverages you are protecting yourself in case you are involved in an accident as many
at-fault motorists simply do not have the necessary insurance or assets to compensate
you following a serious crash.
The best way to understand your insurance coverage, or
which coverages to purchase, is to have a detailed conversation with your insurance
carrier, insurance agent, or an attorney.
Contact Gurrera Law:

Contact Gurrera Law for advice on what types of auto insurance would best protect you and your family.
If you or someone you know has been hurt in an accident, contact Gurrera Law for a free evaluation of your claim. It won’t cost you anything unless we take on your case, and win.
The information on this page is for informational purposes only and should not
be relied on for legal advice. The information relayed on this page does not create
an attorney-client relationship. You should consult with an attorney about your
individual case for legal advice.
Resources:
1 Value Penguin by Lending Tree <https://www.valuepenguin.com/best-cheap-full-coverage-auto-
insurance>
2 Root Insurance <https://www.joinroot.com/coverage/full-coverage/>>
3 Commonwealth of Pennsylvania Insurance Overview <https://www.pa.gov/agencies/dmv/vehicle-services/insuranceoverview.html#:~:text=What%20Motor%20Vehicles%20Are%20Covered,to%20property%20of%20another%20person>
4 75 Pa.C.S. §1711. Required benefits.
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