Damage to Your Auto Coverage (“Full coverage”)

Insurance companies do not use the term “full coverage” in the Cincinnati automobile insurance contract. The likely reason for this is because a misunderstanding could develop on what “full coverage” provides.

Please note the definition for damage to your auto coverage with one insurance carrier:

We will pay for direct and accidental loss to your covered auto or any non-owned auto, including its equipment, minus any applicable deductible shown in the Declarations. We will pay for loss to your covered auto caused by:

1. Other than collision only if the Declarations indicate that Other Than Collision Coverage is provided for that auto.

2. Collision only if the Declarations indicate that Collision Coverage is provided for that auto.

How Does Full Coverage Insurance Benefit You?

Simply put full coverage insurance will help you to repair the damage to your vehicle, or provide a loss settlement to you in the event the vehicle is totaled. Here’s the bad news on loss settlements.

Insurance companies only settle losses based on the actual cash value of the vehicle. In other words what is the vehicle worth? Everyone is aware that depreciation greatly affects the value of your vehicles. When the vehicle is damaged or destroyed your insurance company is only obligated to pay what it is worth, the actual cash value of the vehicle.

There Are Two Separate Coverage Parts on Full Coverage

Comprehensive– (sometimes referred to as Other Than Collision Coverage) Provides protection to that individually listed vehicle for vandalism, theft of the vehicle, glass damage, collision with an animal, (like you running into a deer or some other animal including birds) hail, water, or flood damage, fire, explosions, earthquake, or falling objects.

Collision-Provides protection for the individually listed vehicle for anything that you “collide” with, such as another vehicle, telephone pole, wall, or even debris in the road.

Here’s a Common Misunderstanding about Automobile Insurance in Cincinnati When You Have “Full Coverage.”

• Full coverage does not provide car rental, towing and labor, loan or lease gap coverage, or coverage for personal effects in your automobile if they are damaged.

Car rental, towing and labor, loan or lease gap coverage are optional coverage that you must add by endorsement to the policy.

Looking for the Better Rates on Insurance in Cincinnati? Call 513-662-7000