The best type of auto insurance policy you could choose is a full-coverage policy. This is a type of policy that includes a lot of different types of coverage options, so it will protect you from almost any problem you may have relating to an accident. Here are the main ways a full-coverage policy will protect you.

It will cover the costs of another vehicle if you cause the collision

If you cause an accident while you are driving your car, a full-coverage policy will cover the damages to the other cars involved. This is primarily because full-coverage insurance includes liability coverage. You can buy a liability-only coverage policy which would also cover this type of damage, but that is the only type of damage a policy like this would offer.

It will cover the costs of your own car is you cause a collision

The top benefit of full-coverage insurance is that it covers the costs of the damage to your own car, even if you were the negligent driver in the case. In fact, your insurance would cover the damages no matter what the reason is that you caused the accident. Without full-coverage insurance, you would be left with a wrecked car that you would have to pay for out of your own pocket.

It will cover the costs of your own car if an uninsured driver causes a collision

Full-coverage auto insurance also comes with coverage called uninsured and underinsured motorist coverage, and these two types of coverage options are designed for times when uninsured or underinsured drivers cause accidents. If another driver causes a collision that wrecks your car, but the person has no insurance, your policy would kick in and pay the damages. This is important to have, as there are a lot of uninsured drivers on the roads.

It may pay the deficit on your car if you total your own car

The other way your policy may protect you is by paying the deficit on your car if you total it. A deficit refers to the amount of money you could end up still owing on your car after it is totaled, and it is calculated by subtracting the balance you owe on the car by the amount of money your car is worth. To make sure you have this coverage, talk to your agent about including gap coverage on your policy.

While you do not legally have to carry full-coverage auto insurance, unless you have an auto loan, it is still a good idea to have this type of policy if your car is worth some money. You can find out how much it would cost by talking to a personal auto insurance agent of your choice.