what is auto full coverage? Just when you have a lien holder & have to have full coverage?

Question

what all is on the lien holders full coverage? Like comp/col,unisu.underinsured....?

Answer 1

You do not want Insurance placed on your car from your lien holder! This is what's called forced placed Insurance and it will only protect the lien holders intrest. It's super expensive because it's rated for worst of all drivers and situations. The lien holder will then bill the cost of the insurance back into your car payments which often will result in the car payment more than tripling. In most cases if the lien holder has to put forced place insurance on your car it a violation of your finance agreement and they will have the right to reposes your car.

You should call around to get some quotes from for auto insurance. With regards to full coverage, liability so on so on, there are pieces and parts that you can add or remove from your coverages. It just depends on how much protection you want, need or can afford. An astute insurance agent can help you with this. My advice if it's a budget issue for you, get only what you need to have. Which simply put should be the following.

Liability that meets the requirements of the State in which you reside (this coveage protects persons/property you may hit up to certian limits).

Comprehntion (This covers your vechical against loss like theft and falling trees such like that) again if it's a budget issue choose the highest deductable your lien holder will allow. Your deductable is the amount of out of pocket expense your are responsible for in the event of a loss.

Collition (This covers your in the case of a collition or upset with another vechical or other situation regardless of fault or who does or does not have insurance). Again if it's a budget issue choose the highest deductable your lien holder will allow.

These three things should not only saticfy your lien holder but will also bring you into compliance with your States insurance laws. But it's very basic and wont offer you any type of medical, rental, personal protection anything like that. With some insurance companies they offer additional coverages that are geared more twards protecting you, your assest and medical cost and depending on the company may not add that much cost to your policy. You just need to decide what you can budget and if its worth to make a little higher payment for more protection for yourself and in some cases others. Keep in mind that a small payment now could save you from a huge out of pocket expense later, which hopefully you will never have.

Good luck and I hoped I've helped. Take care.

Answer 2

Full coverage means that you have Liability, Underinsured Motorist, Uninsured Motorist, Comp, and Coll..
If you just carry Liability that usallly means you also have Underinsured Motorist, and Uninsured Motorist as well..
Some people also carry Medical Expense on there policy wheather it be Liability, or Full Coverage...
When you buy a veh from a dealer they will put a lien on it until you pay it off.. What that means is that you may be required to also take out Gap Coverage on your insurance as well.. What that means is that if your in an accident, and the veh is totaled the insurance company will pay the dealership what you still owed on it, and you usally won't get anything out of it... Most dealerships, and banks require you have Comp, Coll, and Liability which would be FULL COVERAGE.. .
Liability alone would be Property damage coverage, and Bodily injury damage.. Thats why most people also have the Uninsured, and Underinsured, and Medical expense on there when they get just the liability...

Answer 3

Full coverage means that YOUR vehicle is covered REGARDLESS of fault. The bank considers your car their property until it's fully paid for, and they want their property to be insured.
Here is a sample scenario. The vehicle owner is killed in an accident, and the car is totaled. What will the bank do if there is no full coverage, who will they extort money from?

Answer 4

Um, yea that girl doesnt know what shes talking about.

There are two basic coverages you can get for insurance:

a. liability- that covers any damage you do to other people/cars if your at fault for an accident

b. "full coverage"- this covers damage to your own vehicle/self as well as other party/car if involved in an accident

If you have a lienholder you are required to have full coverage as if you wreck a vehicle that has a loan taken out... they want to know that they will get what you owe them back.

Answer 5

No it's more expensive because it means if there is an accident the insurance company will cover the full cost of the car... not part, but all of the book value.