“Full coverage car insurance” is a common phrase, but it is not an official policy type. It usually means a combination of liability, collision and comprehensive coverage. Here is what that really includes.
What Does Full Coverage Include?
- Liability: pays for injuries and damage you cause to others. Usually required by law.
- Collision: pays to repair or replace your car after a crash, regardless of fault.
- Comprehensive: covers theft, vandalism, fire, hail, falling objects and animal strikes.
Many drivers also add uninsured/underinsured motorist coverage, medical payments or personal injury protection, and rental reimbursement.
What Full Coverage Does Not Cover
- Mechanical breakdowns and routine maintenance
- Wear and tear
- Damage above your policy limits
- Your deductible
Is Full Coverage Worth It?
It usually makes sense if you:
- Have a loan or lease (lenders typically require it)
- Drive a newer or higher-value car
- Could not afford to repair or replace the vehicle out of pocket
It may be less valuable if your car is old and worth little. A simple check: if the yearly cost of collision and comprehensive is a large percentage of the car’s value, you might consider dropping them.
How to Keep Full Coverage Affordable
- Raise your deductibles to a level you can handle.
- Bundle your policies for a multi-policy discount.
- Compare quotes from multiple insurers every year.
- Ask about telematics and low-mileage programs.
- Maintain a clean driving record.
Tip: Consider gap insurance if you owe more on your car than it is worth. It pays the difference if the car is totaled.
Final Thoughts
Full coverage gives broad protection for your car and finances. Review limits, deductibles and your car’s value to decide whether it is right for you.