When buying car insurance, many people ask for “full coverage.” It sounds like you’ll be protected from everything, right? Not exactly. Full coverage isn’t a specific insurance policy. It’s a general term people use to describe a combination of coverage types that protect your car and others in the most common situations. But it doesn’t cover everything, and knowing what’s included can help you avoid costly surprises. Let’s break down what full coverage actually means—and what it does and doesn’t include.
What Is Full Coverage Auto Insurance?
“Full coverage” usually refers to a policy that includes:
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Liability Insurance
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Collision Coverage
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Comprehensive Coverage
These three types of coverage work together to protect you, your car, and others in different situations. Here’s what each one covers:
Liability Insurance
Required by law in most states.
Liability insurance pays for damage you cause to other people and their property if you’re at fault in an accident.
There are two parts:
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Bodily Injury Liability: Covers medical bills, lost wages, and legal costs if someone is injured in an accident you caused.
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Property Damage Liability: Pays for repairs to someone else’s car or property (like a fence or mailbox) if you damage it.
Important: Liability coverage does not pay for your own injuries or car damage.
Collision Coverage
Collision coverage pays to repair or replace your car if it’s damaged in an accident—regardless of who’s at fault.
It covers:
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Crashes with other vehicles
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Hitting a tree, pole, or guardrail
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Rollovers
Even if you caused the accident, collision coverage helps get your car back on the road.
Deductible applies: You choose how much you’ll pay out of pocket before insurance kicks in—commonly $500 or $1,000.
Comprehensive Coverage
Comprehensive coverage pays for damage to your car caused by things other than collisions.
It covers:
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Theft
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Vandalism
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Fire
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Natural disasters (hail, floods, hurricanes)
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Falling objects (like a tree branch)
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Hitting an animal (like a deer)
Like collision, this coverage also has a deductible.
What’s Not Included in Full Coverage?
While full coverage sounds complete, it doesn’t cover everything. You may need to add optional coverages for full protection.
Here’s what’s usually not included:
Uninsured/Underinsured Motorist Coverage
Protects you if you’re hit by a driver with no insurance or not enough coverage. Some states require this; others offer it as optional.
Medical Payments / Personal Injury Protection (PIP)
Covers medical bills for you and your passengers after an accident, regardless of who’s at fault.
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PIP may also cover lost wages and funeral costs.
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Required in “no-fault” states.
Roadside Assistance
Helps with towing, flat tires, dead batteries, and lockouts. Often available as an add-on.
Rental Car Reimbursement
Pays for a rental car while your vehicle is being repaired after a covered loss.
Gap Insurance
Covers the difference between what your car is worth and what you still owe on a loan or lease if your vehicle is totaled.
When Should You Have Full Coverage?
Full coverage is not required by law, but it’s often required if:
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You lease a car
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You’re financing a car with a loan
Even if not required, you might want full coverage if:
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Your car is newer or worth more than $5,000
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You couldn’t afford to repair or replace your car out of pocket
If your car is older or not worth much, you might choose to drop collision and comprehensive to save money.
How Much Does Full Coverage Cost?
The cost of full coverage depends on:
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Your age and driving history
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Where you live
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The type of car you drive
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Your coverage limits and deductibles
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Your credit score (in most states)
On average, full coverage costs more than double the price of liability-only insurance—but it offers far more protection.
Conclusion
“Full coverage” auto insurance gives you solid protection with liability, collision, and comprehensive coverage—but it doesn’t cover everything. Understanding what’s included—and what isn’t—can help you build a policy that actually meets your needs.
Before you buy, ask yourself:
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Do I need extra coverages like PIP or uninsured motorist protection?
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Can I afford my deductible in case of an accident?
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Does my lender require certain coverages?
The more informed you are, the better choices you’ll make—and the more peace of mind you’ll have every time you hit the road.
