Quick learning: Car insurance coverage
About this video
A short conversation busts the myth of 'full coverage' car insurance. It's really just a nickname for three things: liability, collision and comprehensive. Even then there are limits and deductibles, so you should ask what your coverage actually does.
You'll be able to
- name the three parts usually called 'full coverage'.
- explain why 'full coverage' doesn't mean you're covered for everything.
Key words
- liability
- Covers damage you do to other people.
- collision
- Covers your car in a crash.
- comprehensive
- Covers things like theft and weather damage.
- deductible
- What you pay out of pocket before insurance pays.
Transcript
- I though I was covered. I had full coverage.
- What does that mean? - It means I'm covered for anything, right? That's what I've always heard.
- There's actually no such thing as full coverage. It's just a nickname. Full coverage is really just three things. Liability. It covers damage you do to other people. And collision covers your car in a crash. And comprehensive, which is theft, weather and things like that.
But even with that, there are still limits and deductibles. So you could be paying thousands out of pocket.
- So I might not actually be covered the way I think?
- You're covered for specific things up to specific amounts. So don't just ask, "Do I have full coverage?" Ask what your coverage actually does.
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