“Do you want full coverage or just liability?” It’s one of the most common questions asked when shopping for car insurance—but what exactly does “full coverage” mean?
Full Coverage Isn’t a Specific Policy
First, it’s important to understand that “full coverage” is not a specific type of insurance you can select from a list. Instead, it’s a general term people use to describe a combination of coverages that protect both you and your vehicle—not just other drivers. The car insurance protects you with liability coverage, explained below. It protects your vehicle by providing coverage for your car if it is damaged by an accident, vandalism, theft, hail damaged, and many more occurrences that damage your car.
In most cases, full coverage includes the following:
1. Liability Coverage
This is the part of your policy that’s required by state law. It pays for damage or injuries you cause to other people or their property in an accident. It does not cover your own vehicle.
Typical Coverages:
- Bodily Injury Liability
- Property Damage Liability
2. Collision Coverage
This pays to repair or replace your car if you hit another vehicle, if you are hit by another vehicle, you run into a tree, a guardrail, or another object—regardless of who’s at fault. Car Insurance collision coverage will pay to repair or replace your vehicle when it is damage. You will be required to pay your deductible and the car insurance company will pay the remainder of the repair damages.
3. Comprehensive Coverage
This protects your vehicle from damage not related to a collision. In most cases these are losses when the vehicle is not moving. This includes things like:
- Theft
- Vandalism
- Fire
- Hail or storm damage
- Hitting an animal (like a deer)
4. Optional Coverages Often Included
Depending on your insurance company and state, “full coverage” might also include:
- Uninsured/Underinsured Motorist Coverage
- Medical Payments or Personal Injury Protection (PIP)
- Rental Car Reimbursement
- Towing and Roadside Assistance
Why “Full Coverage” Doesn’t Mean “Everything”
Even with all these protections, full coverage doesn’t cover everything. For example:
- It doesn’t cover routine maintenance or mechanical breakdowns.
- It doesn’t pay off your loan or lease if your car is totaled and you owe more than it’s worth (that’s what Gap Coverage is for).
- It doesn’t automatically include rental coverage unless added.
- It doesn’t include towing or roadside assistance coverage, unless added.
Should You Carry Full Coverage?
Here are a few situations where full coverage might be the right choice:
- Your car is new or valuable.
- You’re still making loan or lease payments.
- You want peace of mind knowing your vehicle is protected in most scenarios.
On the flip side, if you drive an older car that’s not worth much, it might make sense to carry just liability coverage.
Final Thoughts
“Full coverage” means having liability, collision, and comprehensive coverage at a minimum—but it’s still important to customize your policy based on your needs and budget. At Ameriguard Insurance, we’re happy to help you understand your options and build the right protection for your situation.