2024-01-01 · auto, personal, full-coverage, basics
Full Coverage Auto Insurance Explained
Overview
Full coverage generally refers to a policy that includes liability, comprehensive, and collision. It is not a single standardized product, so it’s important to verify the exact limits and deductibles on your policy.
What full coverage usually includes
- Liability coverage: pays for injuries or property damage you cause.
- Collision coverage: repairs your car after an accident.
- Comprehensive coverage: protects against theft, weather, or vandalism.
Common add-ons to consider
- Uninsured/underinsured motorist: covers you if the other driver lacks coverage.
- Medical payments/PIP: helps with injury-related expenses.
- Rental reimbursement: covers a rental while your car is repaired.
- Gap coverage: pays the difference between loan balance and car value.
When full coverage makes sense
- You drive a newer or financed vehicle.
- You can’t afford to replace your car out of pocket.
- You want broader protection beyond state minimums.
Ways to manage the cost
- Increase deductibles while keeping liability limits strong.
- Compare multiple carriers for pricing differences.
- Bundle auto with home or renters insurance.
Frequently asked questions
Is full coverage required by law? No. States typically require liability only, but lenders often require comprehensive and collision.
Can I drop full coverage on an older car? Yes, if the vehicle value is low and you can cover a replacement yourself.