What Does Full Coverage Really Mean?
As a licensed vehicle owner in Nova Scotia, you are required to have a minimum of a million dollars in third-party liability coverage to legally operate it. If you’re financing or leasing your vehicle, or wanting to further protect your financial wellbeing, you’ll most likely require “full coverage.” But what does full coverage really mean?
What is Full Coverage Auto Insurance?
“Full coverage” describes an auto insurance policy that includes these coverage options:
- Third-Party Liability: This includes coverage for bodily injury and property damage to third parties in an at-fault accident—higher liability limits can be applied
- Uninsured/Unidentified Motorist: Also known as Family Protection—this protects you and your family in an accident caused by an underinsured driver, or a hit-and-run
- Medical Payments: This covers medical expenses for you, your relatives and passengers involved in an accident
- Collision Coverage: This helps repair your vehicle if you collide with another car or object, whether you’re at fault or not
- Comprehensive Coverage: This covers loss and damage not caused by collision, like theft, vandalism and weather-related perils
How Much Does Full Coverage Cost?
Car insurance is generally customizable past what’s legally required. It’s important to find a balance in the coverages you require and what fits your individual situation. Your premium is affected by the types of coverages you choose, and the limits set for them.
For example, if you travel with other passengers often, you may choose to increase your legal liability limit. If you use your vehicle often for work, your employer might make certain coverages mandatory too. A good rule of thumb to follow is that the newer the vehicle and the bigger the investment, the more coverage you’ll need.
Why Do You Need It?
Say you start financing a brand new car… and get into an accident with another driver a month later. Full coverage means you, your passengers, your vehicle, and the other party are protected for loss or damage; your investment in the car, and the bank’s investment in you is covered, too.
Being “fully covered” gives you peace of mind. You want to be sure you won’t experience financial ruin in the event of loss, damage or injury to you, your vehicle and anyone else involved.