What’s NOT covered by Full Coverage Insurance?

Posted on March 7, 2023 at 7:00 PM by The Biker Lawyers

What Type of Insurance Coverage Do You REALLY Need For Your Vehicle?


Do you know what type of insurance coverage you need for your vehicle?

The truth is, most of us don’t. Many drivers may think they know what kind of insurance they need, but in honesty, they’re guessing. They realize they probably need more than Liability coverage or assume Full coverage should be enough. But what does “full coverage” actually mean when it comes to protecting yourself and your family in case of a crash?

In this article, we’ll take out the guesswork and give you some solid insights to help you make sure you’re protected in the event of a serious crash.

What is Full Coverage?

Full coverage insurance typically refers to an insurance policy that provides comprehensive protection for your vehicle, covering damage to your car, as well as any other vehicles, property, or people involved in an accident you may cause.

In general, full coverage insurance includes both collision and comprehensive coverage, in addition to liability insurance. Collision coverage pays for damage to your vehicle resulting from a collision with another car or object, while comprehensive coverage covers non-collision events such as theft, vandalism, or natural disasters. We’ll get into more on these and other important things to consider in a second.

What is Liability Coverage?

Liability coverage is the most basic coverage you should consider for your vehicle. Liability coverage pays for the losses you cause to another person. These losses include medical bills, loss of income, pain and suffering, disability, and property damage.

What is the Minimum Liability Coverage in Iowa?

In Iowa, the law requires all drivers to carry liability insurance to cover damages or injuries they may cause to others in an accident. According to the Iowa Insurance Division, The minimum liability insurance requirements for drivers in Iowa are:

  • $20,000 per person for bodily injury or death of one person in any one accident
  • $40,000 per accident for bodily injury liability coverage
  • $15,000 per accident for property damage liability coverage

These minimum liability coverage amounts are often expressed as 20/40/15. It’s important to note that liability insurance covers damages or injuries you may cause to others, but it does not cover your own injuries or damages to your own vehicle.

Is the State Minimum for Liability Coverage Enough?

Although the state minimum liability insurance required is only $20,000, that amount will only cover liability in a minor crash. $100,000 is the bare minimum anybody should consider. Insurance coverage is there to protect you when things go bad. If you don’t have enough insurance coverage and seriously injure somebody, in could easily push you into bankruptcy. People with significant assets typically have at least $250,000 in liability insurance plus an umbrella policy (again, more on that later).

What is Uninsured/Underinsured Motorist Coverage?

Uninsured/Underinsured Motorist coverage (UM/UIM) pays for the damage caused to you by a driver who has no insurance at all, or has insurance, but does not have enough to cover your losses.

According to statistics, 1 in 10 cars on the road don’t have any insurance at all.

This type of coverage is especially important for motorcyclists, who are more likely to be involved in a serious crash.

Motorcyclists should consider a high-limit UM/UIM policy ($250,000). Anything less exposes you to extreme financial hardship if you are injured by a driver who does not have enough insurance. The safest option is to not only carry high-limit UM/UIM coverage but to also have an umbrella policy (again, more on that later).

What is Property Damage Coverage?

Property Damage coverage pays for the damage caused to another person’s vehicle and other property in an accident.

These days, it’s common for vehicles to cost $35,000 or more. You want to have enough coverage to pay for the other driver’s car if a crash is your fault. It’s a good idea to have at least $50,000 in property damage coverage.

What is Medical Payments Coverage?

Medical Payments coverage pays for the medical bills of you and your passengers in an accident. It’s important to consider your health insurance policy when determining how much coverage you need.

If you have a good health insurance policy, your medical payments coverage should be enough to pay your copays and deductibles. If someone in your vehicle doesn’t have health insurance, you may need more coverage.

What is Umbrella Insurance?

Umbrella insurance is the final piece you need to protect yourself and your family.

Umbrella insurance provides extra coverage in case of a serious accident. It’s a backup if your insurance policy isn’t enough to cover the damages. It’s extremely important to make sure your umbrella policy covers not only liability but also uninsured and underinsured motorists.

For example, let’s say you get in a crash that is somebody else’s fault. The other driver only has $20,000 liability coverage. Your medical bills alone are $350,000, and you lost $50,000 in wages. If you had $250,000 UM/UIM coverage, that means between the other driver and your insurance, there is a total of $270,000 to cover your losses. That sounds like a lot of money, but you lost $400,000 between medical bills and missed paychecks. And this is before even considering all the pain, isolation, loss of mobility, and disability you went through.

If you had the foresight to buy an umbrella policy that covers UM/UIM, this crash will not put you in bankruptcy. If you had a $1M umbrella policy in the above example, there would be a total of $1,270,000 in insurance coverage to pay your losses.

A $1M umbrella policy costs around $200 per year. It’s an investment in yourself and your family that you do not want to fail to make.


It’s important to understand the different types of insurance coverage you need for your vehicle. Liability, uninsured/underinsured, property damage, medical payments, and umbrella coverage are all important to consider. Having the right insurance coverage can protect you and your family in case of a serious crash. It’s worth spending a few bucks a month for peace of mind.

At the end of the day, you need to handle this risk yourself by buying enough insurance and putting yourself first. Don’t end up in a rough scenario because you didn’t have the right insurance.

Speak truth to power and ride safe.

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