Insurance: Am I Fully Covered with Full Coverage?
When you hear the term “full coverage insurance” it is understandable to assume that this policy fully covers you. However, while this is your best insurance policy, there is a dollar limit on your policy. The average driver doesn’t think about this because most insurance agents aren’t going to go into all of the technical details of a policy. What most people end up with is full coverage insurance with the minimum limit required by the state DMV, which is $25K in Virginia.
If you were to be in an accident and incur a serious injury, resulting in thousands of dollars in medical bills, you may not be able to recover as much as you need. For example, if you and the driver at fault both carry insurance policies with the minimum limits, the maximum pay out from the insurance company is going to be $25K. The amount you are paid over and above that depends wholly on the assets of the other driver. The court can only get money for you if there is money to be had.
To help avoid this situation, you can upgrade the limits on your insurance coverage. As long as your driving record is in decent shape, the increase in your insurance premium to help keep you better protected is rather minimal. To find out how covered your full coverage insurance makes you, review your policy and call your agent.
We always want everyone to be as well protected as possible in the chance that an accident occurs.