What is full coverage auto insurance

– Whenever I get a call from somebody who was just involved in an auto accident, I always ask what type of, and how much insurance do you have? And they always tell me the same thing, I've got full coverage But what does full coverage mean? And how much insurance do you really need? Check out this video to learn more

(gentle music) (banging) Hi, Barry here, with the LawFull Channel, welcome If you haven't been here before, please consider subscribing And if you have any legal questions on any topic, please feel free to reach out to me If I can't help you, I'll find someone who can I've got full coverage

I hear it every day But what does it mean? And why is it important to you? Let's get into the video to find out what type of insurance you need to have, and how much insurance you should have to protect yourself Every state has its own mandatory insurance requirements For example, in my home state of Illinois, I have to have a minimum of $25,000 in insurance I put a link in the show notes below that lists the minimum requirements for every state, so feel free to check it out

What does that $25,000 mean? It means that if I hit somebody, and I cause damage to them or I injure them, I'm covered up to their first $25,000 in damages In addition, in Illinois at least, I also have $25,000 in uninsured motorist protection, meaning, if the guy who hits me and causes my damage or my injury, I'm covered to my first $25,000 in damages as well But here's the thing Meeting your state's mandatory minimum insurance requirement is not the equivalent of having full coverage In fact, it's far from it

Chances are, you don't have enough auto insurance Now, I'm saying this from a personal injury lawyer perspective, I'm not an insurance agent, I don't profit by you having more insurance In addition, it's likely that there are various types of insurance that you could have, that you don't have, that you might want to consider So let's check out what options are available to you So first, in terms of how much insurance you should have, people often have the minimum required by their state, but don't realize that, for a few dollars more, they can significantly increase their insurance coverage

I always recommend to people to have at least $100,000 in liability, uninsured, and underinsured motorist protection If you get involved in a serious accident, having the minimum coverage probably won't even pay for your medical bills, let alone effectively compensate you for your pain and suffering I always recommend that people also have collision coverage And what collision coverage does is that if you get involved in an accident, you can turn to your own insurance company to get the property damage to your vehicle fixed It will significantly shorten the amount of time it takes while the defendant's insurance company figures out who was responsible for the accident

You might also want to consider having something called comprehensive coverage What that refers to is that if your car is involved in a non-vehicle-related accident, so for example, if it get hits by a bolt of lightning, or if a tree lands on your car, or whatever, you can get your property damage fixed by your own insurance company Another small clause you can add to your auto insurance policy is something called MedPay, or Medical Payments coverage In some states, it's called PIP coverage, or Personal Injury Protection What this means is you can obtain $2500, or $5000, or even $10,000 in medical payment coverage, meaning, the first $2500 or $5000 in your medical expenses are covered

The nice thing about MedPay is, one, if you don't have health insurance, it will cover your medical bills Secondly, there's no deductible with MedPay, 100% of your bill is covered And lastly, if you do have health insurance, you can use your MedPay to cover your co-pays or your deductibles Finally, one thing that I see people missing out on is something called gap insurance Now, where gap insurance comes into play is that when you buy a new vehicle, the value of your vehicle, the second you drive it off that lot, goes down significantly

If you get involved in an accident, it doesn't matter how old your car is, you're not gonna get what you paid for that vehicle And, in all likelihood, you're gonna recover from the insurance company far less than you owe on the vehicle If that's the case, gap insurance will cover the deficit on your behalf So why do you need so much insurance? Well, I've talked about it before on this channel, but it's estimated that about 13% of all drivers nationwide are uninsured So the next time you're driving on the road, count the cars around you

Over one in 10 does not have insurance And in states like Florida, it's estimated that as much as 27% of all drivers don't have any insurance What's going on in Florida? So do you still think you have full coverage auto insurance? Chances are, you don't So call your auto insurance agent, or go back online and see what you do have And if you can, if you are able, talk to an agent about increasing your auto insurance limits

Okay, it's time for your take on the law Were you involved in an auto accident and thought that you had full coverage, only to find out that you had the minimum amount of insurance required by your state, and other clauses you thought you had, you didn't? Tell us about it in the show notes below Hey, thanks for checking out this video If you have any questions about how much auto insurance you should have, please feel free to reach out to me, I'm happy to talk with you about this, or any other legal issue And if you haven't, consider subscribing to our channel for great legal information on the topics that affect our lives

See you next time (gentle music)