What Does "Full Coverage" Car Insurance Mean?
Many drivers ask for full coverage, but it is not a single official product. The term is a shortcut. This guide explains what it usually means and what it may leave out. Rules and terms vary by state and insurer.
What people usually mean
Full coverage usually means a policy that combines liability coverage with collision and comprehensive coverage. Together these may help pay for damage you cause to others and damage to your own car.
The usual pieces
- Liability: pays for injury and property damage you cause to others, up to your limits. Most states require some amount.
- Collision: may help pay to repair your car after a crash, whoever is at fault, minus your deductible.
- Comprehensive: may help with non-crash damage such as theft, fire, hail or hitting an animal, minus your deductible.
What it may not include
- Damage above your policy limits
- Rental car, roadside help or gap coverage, unless added
- Uninsured or underinsured motorist coverage in some states, unless you choose it
- Wear and tear or routine maintenance
When lenders require it
If you finance or lease a car, the lender often requires collision and comprehensive coverage. Check your loan or lease terms.
Is it right for you?
Whether to carry collision and comprehensive can depend on the car's value, your deductible and your budget. Some drivers with older, low-value cars choose to drop them. Ask an agent to compare the options.
Questions to ask your agent
- Exactly which coverages are on this quote?
- What are the liability limits and the deductibles?
- Is rental or roadside coverage included?
- How does this compare with the state minimum?
Next step
A licensed agent can explain the coverages and compare quotes by phone. HavenLine is a referral service, not an insurance company.
Questions
Is full coverage required by law?
Usually not. States generally require liability coverage only, though lenders may require more. Check your state rules.
Does full coverage cover everything?
No. It still has limits, deductibles and exclusions, so read the policy.
General information only, not financial, legal or insurance advice. Rules, prices and benefits vary by state and by policy. A licensed professional can explain what applies to you.