Drivers are often required to obtain full coverage from their lenders while they still carry a balance on their vehicles. And although this term is used frequently, full coverage is actually not a type of insurance on its own but refers to a bundle of several indemnification types.
The liability portion serves to pay for damages that occur to the other motorist’s property when you’re involved in an accident that is your fault. This is also a legal requirement for Birmingham, AL residents, and a minimum of $25,000 per incident is legally mandated. In addition, this insurance will also take care of the medical costs and lost wages for the other party, and $25,000 is needed per person with a sum of $50,000 per wreck.
Your bank has underwritten your vehicle and assumes financial risk when the car you are driving can be totaled or in need of major repairs. For this reason, a combination of collision and comprehensive indemnification help negate these hazards. Your Russ Richardson Agency representative can go into greater detail with you as to what is entailed.
Collision indemnification takes care of costs related to events where your vehicle strikes another object. This can include a vehicle, lamp post, mailbox or other obstruction. Comprehensive extends to issues when you incur damage from falling tree branches, hail, sleet, or severe storms.
Though it falls outside the purview of full coverage, you can also choose to obtain gap insurance that will zero out your loan in situations where an auto is considered a total loss and reimbursement at market value is insufficient to pay off the balance.
Russ Richardson Agency Can Insure You
We work with clients residing in and around the Birmingham, AL area, and we can tailor an automobile insurance package to meet your needs. Please reach out to us today via email or phone to schedule your office visit today.
