The public has a misconception of what full coverage car insurance entails. As an insurance agent I am always told by my clients that they want inexpensive auto insurance with full coverage when they are requesting car insurance quotes. What they really want is an adequate policy to fit there needs.

There is no such thing as auto insurance with full coverage. You may have a lot of coverages but are you fully insured for every circumstance and judgment that can be brought against you? Lets closer look at some of the misconceptions the general insurance buying public has about full coverage insurance.

When most people say they have full coverage auto insurance what they actually mean, is that they have liability, property damage, collision and comprehensive coverage. These are all terrific coverages to have and most of us have them, but at what limits?

Your limits are the most important things to consider when discussing full coverage automobile insurance. You are asked to purchase limit amounts on all of your coverages. So do you really have full coverage automobile insurance or do you have limited coverage?

We all have limited coverage. With the exception if you purchase a no deductible option for you comprehensive and collision coverage. Everything else has a limit.

So under this premise you can have a policy that has state minimum liability and property damage coverage with collision and comprehensive coverage with $2000 deductibles. This person is under the impression that they have full coverage car insurance.

Another person may have a policy with liability and property damage at a $500,000 single limit and collision and comprehensive coverage with no deductible. These are the best standard coverages available by most insurance companies and this person also thinks they have full coverage auto insurance.

Both individuals have all the normal coverage options but at different limits. Even though both people think they are fully covered neither actually are. For example if you caused an accident and hurt a person severely and they had medical bills of 2 million dollars for the four months they had to stay in the hospital. You would be responsible for all the liability over your chosen limit. There are options to purchase umbrella coverages for millions of dollars worth of coverage but they aren’t included in your car insurance policy and all car insurance companies don’t offer them.

If you really had full coverage auto insurance there would be no limits to your coverage. You wouldn’t have a deductible or a single or split limit for you liability coverage. You would be covered fully for any circumstance without having to pay anything else. Even with an umbrella policy there are limits. So, when getting car insurance quotes in the future don’t expect to get full coverage insurance, expect to get limited coverages that you feel are adequate for you.

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