Full Coverage Doesn’t Exist

Is “Full Coverage” Really Full? What You Should Know About Auto Insurance

Here’s a scenario we encounter all the time. A prospective client calls and says, “I want full coverage for my car.”

But here’s the truth. There’s no such thing as “full coverage” auto insurance. No insurance policy will cover everything that could happen to you or your car. And in reality, what most people mean when they ask for “full coverage” is a combination of certain key protections.

So what does “full coverage” really mean? Let’s break it down.

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What People Usually Mean by “Full Coverage”

When clients say “full coverage,” they’re typically referring to two coverages that protect their vehicle itself:

• Comprehensive coverage: Despite the name, this isn’t truly comprehensive. It specifically covers damages to your vehicle from events other than a collision. For example:

  • Theft

  • Vandalism

  • Fire

  • Natural disasters

  • Hitting an animal

  • A rock cracking your windshield

• Collision coverage: This covers damages to your vehicle if you’re in an accident, regardless of who is at fault, whether you hit another car, a pole, or a tree.

Some drivers opt out of these coverages for older vehicles where the value of the car is low compared to the cost of coverage.

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What “Full Coverage” Does NOT Include

Even if you carry both comprehensive and collision, you’re still required by law to meet state minimum liability limits. This is a separate part of your policy.

Liability coverage pays for damage and injuries you cause to others, not to yourself or your vehicle.

You may see liability limits written as a series of three numbers, like 100/300/100 or 250/500/250, which represent:

• The maximum coverage for bodily injury per person

• The maximum coverage for bodily injury per accident

• The maximum coverage for property damage per accident

Importantly, even these limits aren’t “unlimited.” If you cause an accident that exceeds these limits, you could still be financially responsible for the excess costs. That is why we often recommend higher liability coverage that the state minimum limit. You may pay a bit more in premium, but the coverage you get is worth it.

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Optional Coverages to Consider

In addition to liability, collision, and comprehensive, there are several optional coverages that are worth considering for broader protection:

• Uninsured/Underinsured Motorist Coverage (UM/UIM): Pays for your injuries and damage if you’re hit by a driver who has no insurance or not enough insurance.

• Medical Payments (MedPay): Helps cover medical expenses for you and your passengers after an accident, regardless of fault.

• Gap Coverage: If you’re financing or leasing a vehicle, gap insurance covers the difference between what you owe on your loan and what the car is worth if it’s totaled.

• Rental Reimbursement: Pays for a rental car while your vehicle is being repaired after a covered loss.

• Roadside Assistance: Provides help for things like towing, flat tires, or lockouts.

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When Does It Make Sense to Carry Comprehensive and Collision?

If your vehicle’s value is low, you might decide it’s not worth paying for physical damage coverages (collision and comprehensive). In that case, you’d still be required to carry liability insurance but would bear the risk for damage to your own car.

However, for new vehicles and leased vehicles, both comprehensive and collision coverage are essential to keeping you and your vehicle protected.

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The Bottom Line

“Full coverage” isn’t really a defined policy. It’s a common phrase that usually refers to having comprehensive and collision coverage, but that alone won’t protect you from everything.

The best coverage for you depends on your vehicle, your financial situation, and your risk tolerance.

Not sure what you need? We’re here to help! Contact us and we’ll walk you through your options to make sure you have the protection that makes sense for you.