Full coverage insurance is a term commonly used to describe an auto insurance policy that includes several key coverages, typically:
- Liability coverage: Covers damages or injuries you cause to others in an accident, which is required by law in almost every state.
- Comprehensive coverage: Pays for damage to your vehicle caused by events outside of your control, such as theft, vandalism, fire, weather, or hitting an animal.
- Collision coverage: Covers damage to your vehicle resulting from a collision, regardless of fault.
This combination provides protection for both damages you cause to others and damages to your own vehicle
. However, there is no single, standardized "full coverage" policy. The term is somewhat misleading because no policy covers every possible situation 100%. Instead, full coverage usually means carrying liability plus physical damage coverages (comprehensive and collision), along with any other state-required coverages. Lenders often require this combination when you finance or lease a vehicle
. Additional optional coverages that can be added to enhance protection include:
- Uninsured/underinsured motorist coverage
- Medical payments or personal injury protection
- Roadside assistance
- Rental car reimbursement
- Gap insurance (to cover the difference between your loan and vehicle value if totaled)
- Car repair insurance for mechanical breakdowns
Choosing full coverage typically costs more than liability-only insurance, but it offers broader protection for your vehicle and finances
. In summary, full coverage insurance is a package of liability, comprehensive, and collision coverages designed to protect you, your vehicle, and others, but it is not a guarantee of coverage in all scenarios and can be customized with additional options based on your needs
