When you drive an old car that's not worth a lot of money, you can get by with only the minimum amount of legally mandated auto insurance. However, if your vehicle is a relatively new or expensive model, or if you still have an outstanding auto loan balance, you'll want to purchase what’s called "full coverage" for the best protection. However, full coverage is not an actual term used by insurers; rather, it’s a shorthand phrase that varies by company. Below, you'll find a discussion of some of the most common types of auto insurance coverage included in these full-coverage policies.

What Does Full Coverage Auto Insurance Usually Include?

Liability Coverage

Most states require all registered vehicles to be covered by liability coverage before they can operate on the roads. It pays for medical treatment and repairs if you injure another motorist or damage their property. For instance, in Minnesota, drivers must purchase at least $30,000 of bodily injury liability coverage per injury, to a per-accident maximum of $60,000, along with $10,000 of property damage liability coverage. This only covers other vehicles and pedestrians, not damages to your own car or injuries to your passengers.

Collision Coverage

To protect your own vehicle against accidental damage, you need collision coverage. This pays for the repairs needed for your vehicle, even if you are at-fault in an accident.

Comprehensive Coverage

Comprehensive coverage protects you against non-collision losses, such as those due to fire, flood, vandalism, and theft. Although collision and liability coverage are not necessary when your car is in storage—if you've flown out of state for the winter, for instance—comprehensive coverage is still important to guard against misfortune.

Medical Payments Coverage

Many insurers include medical payments coverage as part of their “full coverage” policy. It pays for medical treatments if you or a passenger is injured in an accident, regardless of who is at fault.

Uninsured & Underinsured Motorist Coverage

This pays for injuries and repairs when the at-fault driver is either uninsured or does not have enough insurance to cover the balance. Your policy pays the amount of any discrepancy so you don't have to.

As you can see, full coverage auto insurance protects you against many of the risks you face on the road. To custom tailor a policy to your needs, contact Farmers Insurance: Daniel Oliver in Edina, MN. They've been helping clients throughout Hennepin County choose the right coverage for more than 30 years. Visit their website to request a car insurance quote, or call (952) 925-4454 to speak with an experienced agent. You can also connect on Facebook.