“Full coverage” is a common request for a personal auto policy, but unfortunately, it does not exist in the industry since there simply isn’t an insurance policy that covers everything. However, if your vehicle is financed through a financial institution, they will require specific coverage on the automobile or might even state that you must have full coverage.
If a vehicle is financed or still holds a good market value, I suggest selecting the broadest options that meet your needs. Liability is going to be mandated by North Carolina law, so make sure you select the proper limits to ensure you protect your assets in the event you cause an accident. Physical damage coverage is required by the financial institution that financed your vehicle; this would include comprehensive (other than collision) and collision coverage. If your vehicle still holds a good market value, you will probably want to keep physical damage coverage. For an additional premium, there are some other recommended optional endorsements.
Are You Properly Insured?
Extended transportation is coverage that reimburses for a rental vehicle in the event your auto is in the body shop because of a covered claim. The insurance company will pay a dollar limit per day up to a maximum dollar amount for a maximum number of days while your auto is being repaired. For those who don’t have a spare vehicle in a claims situation, this is a great endorsement to have.
Repair and replacement cost is an endorsement that can help put you in a new vehicle of like kind in quality in a total loss situation, for losses other than fire, theft, larceny, vandalism and malicious mischief, or reasonable cost of repairs with parts of like kind and quality. We have all heard of how much a new vehicle depreciates when it is driven off of the car lot, so this has become a very popular endorsement. The vehicle must meet specific requirements to have this endorsement.
Your local Farm Bureau agent is a great resource to discuss all the options available for a personal auto policy and can help you design a plan that is right for your needs to make sure you’re properly insured. Our agents are here to help, so give us a call or stop by one of our offices.
