Full Coverage Insurance


What is car insurance with full coverage?

When brokers, lenders, and insurers talk about full coverage automobile insurance, they usually mean having both liability and physical damage coverage (i.e. comprehensive and collision). However, there is no agreement on what "full coverage auto insurance" entails. Don't be fooled: no insurer can provide a policy that covers you in every scenario.


What exactly does "full coverage" automobile insurance mean?

When borrowing or leasing a vehicle, your lender may use the term "full coverage," but this just means that they need you to have comprehensive and collision insurance, as well as anything else your state requires. In almost every state, liability coverage is mandatory, although comprehensive and collision (physical damage coverage) are optional.


Instead of asking, "Is my vehicle insurance full coverage?" check with your agent or insurance provider to see whether you have the proper coverages. Paying for all of your insurance company's protection may be a waste of money. However, while your lender may deem state-minimum liability to be enough, it may not be enough coverage to adequately protect you and the other drivers on your policy. Your insurance coverage should be tailored to you, your family, and your car.


Liability insurance vs. full coverage insurance

Carrying liability-only coverage on your vehicle policy means you're protected for damages or injuries you cause to someone else, up to certain limitations. A liability-only coverage will not cover car damage. To safeguard your car from physical harm, you must purchase comprehensive and collision coverages. Many lenders, brokers, and vehicle dealerships define "full coverage" auto insurance as liability as well as comprehensive and collision coverage.


Should I include any optional coverages?

Even if your lender does not demand coverage, a new car is an essential investment that should be safeguarded. Comprehensive and collision coverage will pay for car damage caused by accidents and events that are both within and beyond of your control.


If the worth of your vehicle is really low (less than $2,000), it may not make sense to have physical damage coverage (i.e. comprehensive and collision). If you choose liability coverage only, make sure you can afford to buy a new car out of your own cash if it is totaled and uninsured.


Extra coverage, like as roadside assistance or rental car reimbursement, is usually very affordable and can be added easily to protect you.


What is the cost of "full coverage" insurance?

Adding physical damage protection and other extra coverages will increase the cost of the insurance above a liability-only policy. How much extra depends on a variety of criteria, including the year, make, and model of the car you wish to insure, as well as the deductible you choose (the cost of comprehensive and collision coverage will decrease if you choose a higher deductible). The insurance covers your vehicle even if a total loss, so will have a moderate expense that is usually well worth it.