“Full coverage” is one of the most commonly used — and misunderstood — insurance terms. It does not refer to a specific policy type.
What Full Coverage Typically Includes
When people say full coverage, they usually mean a combination of:
- Liability coverage
- Collision coverage
- Comprehensive coverage
Together, these cover damage you cause to others, damage to your own vehicle, and non-collision events.
What Full Coverage Does Not Mean
Full coverage does not mean everything is covered. Policies still have deductibles, limits, and exclusions.
When Full Coverage Makes Sense
Drivers with newer vehicles, loans, or leases are often required to carry full coverage. It may also be beneficial for drivers who want broader financial protection.
Cost Considerations
Full coverage costs more than liability-only insurance, but it can prevent large out-of-pocket expenses after accidents or theft.
Final Thoughts
Understanding what full coverage actually includes helps drivers choose insurance that matches their vehicle value and risk tolerance.