“Full coverage” is a term you’ll hear often when shopping for car insurance — but what does it really mean? Contrary to popular belief, full coverage isn’t a specific type of policy you can buy. Instead, it’s a combination of coverages that together provide a higher level of protection for you and your vehicle.
Let’s break down what full coverage auto insurance actually includes — and what it doesn’t.
What Is Full Coverage Auto Insurance?
Full coverage typically refers to a package that includes:
- Liability Coverage
This is required in most U.S. states. It covers injuries or damages you cause to other people or their property in an accident. It includes:- Bodily injury liability
- Property damage liability
- Collision Coverage
This pays to repair or replace your vehicle if you collide with another car, hit a tree, or even flip your car — regardless of who’s at fault. - Comprehensive Coverage
This protects your car from non-collision incidents such as:- Theft
- Vandalism
- Fire
- Natural disasters (hail, floods, hurricanes)
- Falling objects (like tree branches)
- Animal collisions (like hitting a deer)
Together, these three coverages make up what most insurance companies and drivers refer to as “full coverage.”
What Full Coverage Does NOT Include
Despite the name, full coverage doesn’t mean you’re covered for everything. Here are a few things it usually doesn’t include:
- Mechanical breakdowns (unless you add specific coverage or have a warranty)
- Routine maintenance
- Personal belongings inside your car
- Rental car reimbursement (unless added as an optional extra)
- Gap coverage (covers the difference if your car is totaled but you owe more than it’s worth — must be added separately)
Is Full Coverage Right for You?
Full coverage is often recommended for:
- New or financed vehicles: If you’re making car payments, your lender will likely require full coverage.
- High-value vehicles: Protecting your investment with comprehensive and collision makes financial sense.
- Drivers in high-risk areas: If you live somewhere with high rates of theft, accidents, or extreme weather, full coverage offers valuable peace of mind.
However, if you drive an older car that isn’t worth much, the cost of full coverage might outweigh the benefits. In that case, liability-only coverage could be more budget-friendly.
Final Thoughts
Full coverage auto insurance offers broad protection, but it’s important to know what’s included — and what’s not. Think of it as a strong safety net that covers both accidents and unexpected events, but it still has its limits. Always read the fine print and consider your vehicle’s value, your risk tolerance, and your budget when choosing coverage.
Want to get the best deal on full coverage? Compare quotes, ask about discounts, and don’t be afraid to switch providers if it means better protection at a lower cost.
