Full Cover Insurance....what does it really means?
The phrase full cover or full coverage insurance is a very popular phrase used to make reference to a certain type of coverage for auto insurance that meets the requirements of financing companies.
For example, John gets a new SUV valued at $50,000 with a down payment of $2,000 he is financing $48,000 with ABC Financial. To the interest of ABC Financial, John has to provide proof of insurance showing that if he were to be in an accident (Collision) or the vehicle was stolen (Comprehensive), the $48,000 will be repaid.....meaning that the vehicle is "fully covered"…. and this gave birth to the popular concept of full cover auto insurance.
Now let’s take it a bit further. There are many other coverages, that are of no interest to Financial Institutions; for example Towing & Labor, Rental Car Insurance, more importantly Medical Payments; these are also vital coverages to you and your family in case of an accident or loss, yet they are not required by most financial contract; so….. are you really fully covered to the extent of what you need? We understand is confusing.
We recommend that next time you use or hear the term full cover, please-please review your insurance declarations page to make sure that it covers everything you need or want.
If you feel that you want any help reading or interpreting your declarations page or insurance contract don’t hesitate in giving us a call!
We're here to help!
Castleway Insurance Agency