10/07/2024 | Press release | Distributed by Public on 10/07/2024 07:41
If you've ever bought, or leased, a car there's a pretty good chance you've been told you need "full coverage" auto insurance while under a loan or lease. But what exactly does that mean?
Honestly, there is no such thing. It is not a term generally used by insurance companies because no insurance company will be able to cover 100% of all situations, which is why so many companies do not use the term "full coverage." The definition of full coverage is going to vary largely by the person and the situation.
Find out if ERIE is right for you. A local agent will be in touch.
The answer to this question lies in who is asking. A lender will have a very different idea of "full coverage" than the owner of the policy and both may vary from state mandated coverage. As we noted above, the definition is open to interpretation, however, let's take a bit of a deeper look at each perspective:
The best way to make sure you have enough coverage for your specific needs and stay within your budget is to reach out to your local ERIE insurance agent. Since they're local, they understand the demands of your area. They're also experts in the insurance world, so they can make sure you meet any requirements from both the state and a lender while also ensuring you have peace of mind you'll be covered.
The six classes of rental car options are not available in Virginia or North Carolina. Transportation expenses are included in Virginia with comprehensive coverage and is optional with collision. In North Carolina, transportation expenses are only covered with vehicle theft claims. The limit is $15 per day and up to $450 per loss. Vehicles eligible for coverage include cars, light trucks and motorcycles. The service also covers horse, livestock and other trailers that are pulled by vehicles that ERIE insures. See individual policies for specific coverage details. Certain terms and limitations may apply. In North Carolina, coverage is purchased by limits ($25, $50 and $100).
Roadside Service coverage is only available when either comprehensive or collision coverage has been purchased on the vehicle. In North Carolina, Towing and Labor Service Coverage is only available when comprehensive coverage has been purchased on the vehicle. Limitations apply in Virginia.
The endorsement is sold on a per-vehicle basis, not per policy, and contains the specific details of the coverages, terms, conditions and exclusions. Coverage is not available in New York or North Carolina. Eligible vehicles must carry both comprehensive and collision coverage and replacement must be made with a comparable model. See individual policies for specific coverage details. New vehicle replacement and better vehicle replacement do not apply to leased vehicles. Auto lease/loan component and repair coverage applies to a leased vehicle. Coverage does not include items such as overdue payments and carry-over balances from previous leases/loans, etc. When payment is made under new vehicle replacement or better vehicle replacement, auto lease/ loan or repair coverage will not apply. Insurance products are subject to terms, conditions and exclusions not described here. Ask your ERIE agent for details.
ERIEĀ® insurance products and services are provided by one or more of the following insurers: Erie Insurance Exchange, Erie Insurance Company, Erie Insurance Property & Casualty Company, Flagship City Insurance Company and Erie Family Life Insurance Company (home offices: Erie, Pennsylvania) or Erie Insurance Company of New York (home office: Rochester, New York). The companies within the Erie Insurance Group are not licensed to operate in all states. Refer to the company licensure and states of operation information.
The insurance products and rates, if applicable, described in this blog are in effect as of January 2024 and may be changed at any time.
Insurance products are subject to terms, conditions and exclusions not described in this blog. The policy contains the specific details of the coverages, terms, conditions and exclusions.
The insurance products and services described in this blog are not offered in all states. ERIE life insurance and annuity products are not available in New York. ERIE Medicare supplement products are not available in the District of Columbia or New York. ERIE long term care products are not available in the District of Columbia and New York.
Eligibility will be determined at the time of application based upon applicable underwriting guidelines and rules in effect at that time.
Your ERIE agent can offer you practical guidance and answer questions you may have before you buy.