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I Have Full Coverage

January 31, 2018   |   Posted by: Admin

At Inspirion Insurance solutions we talk to hundreds of clients and potential clients every month. When discussing their current Auto insurance,
there is one answer we regularly get- “I have full coverage.” What does this mean?

The wording Full Coverage seems to imply the insured is covered in the event of any type of Auto Loss or accident. Is this really true? However,
Full Coverage is a misnomer in the insurance industry. All it really means is you have the required coverage, but doesn’t really address coverage limits.
For example, a Nevada driver has state minimum coverage below:

  • Liability Insurance – $15,000 per person/ $30,000 per occurrence and $10,000 property damage.
    This covers the insured for loss (injury, damage or financial) to other people as a result of an accident caused by the insured.
  • Uninsured Motorist – $15,000 per person/ $30 per occurrence
    Which covers insured for injuries sustained as the result of an accident caused by somebody else without insurance or does not have enough insurance.
  • Comprehensive deductible is the amount the insured will pay for repairs to their car as a result of non-moving damage, nature, theft or animals. The carrier will pay the rest at Actual Cash value.
  • Collision deductible is the amount the insured will pay for repairs to their car as a result of moving damage. The carrier will pay the rest at Actual Cash value.
  • Liability Insurance covers the insured for loss (injury, damage or financial) to other people as a result of an accident caused by the insured.

Technically this driver has “Full Coverage” but let’s say they cause an accident with injury to the other driver. Hospitals charge around $7,500/day if they keep you there. Throw in any tests, medicine or surgeries and this number will exceed $15,000 very quickly. Or worse yet if in this accident resulted in death, would $15,000 be enough? All of us would agree if it was our family member $15,000 would not be enough.

There are several scenarios where the “full coverage” in this example would not be enough. This is why it is important to sit down with your agent to discuss coverage and how they impact you and your family. Don’t assume that you have the right coverage. It can actually cost you more in the long run.

Contact Inspirion Insurance Solutions today for a free insurance review.

702-979-3299
jeff@inspirioninsurance.com