Auto Insurance
4 min read

Full Coverage Car Insurance Defined

Published on
July 25, 2023

When it comes to car insurance, 'full coverage' is a term you may come across. But do you really know what it means and how it can protect you? In this blog post, we'll explain the concept of full coverage insurance and its importance for car owners shopping for insurance this year.

Understanding Full Coverage Car Insurance

Full coverage car insurance isn't about a single coverage type, but rather a combination of coverages. It's a handy type of protection for any driver, even when it isn't mandatory.

What Does Full Coverage Car Insurance Include?

Full coverage insurance consists of liability coverage, comprehensive coverage, and collision coverage. Liability coverage pays for injuries and damage you cause to others. Comprehensive coverage compensates for loss or damage to your vehicle from incidents that aren't collisions, such as theft or natural disasters. Finally, collision coverage pays to repair or replace your car if it's damaged in an accident with another vehicle or object.

What Is The Main Difference Between Liability & Full Coverage?

Full coverage insurance includes not only liability but also comprehensive and collision coverage. This means it provides more extensive protection, covering damages to your car, unlike liability insurance which only covers damage you cause to others.

Price Difference Between Full Coverage and Liability

Given the extended protection offered, full coverage insurance is generally more expensive than liability coverage. However, the additional cost can be a worthwhile investment, especially if your car is expensive to replace or repair.

How Much is Full Coverage Car Insurance?

The cost of full coverage insurance can vary significantly based on factors such as your driving record, age, the car's make and model, and your location. We recommend that you obtain quotes from multiple insurance providers to find the most affordable coverage.

Who Needs Full Coverage Car Insurance?

If you’re financing a car, your lender will require you to have full coverage insurance. Even if you own your vehicle outright, it makes sense to have full coverage if your vehicle costs a lot to repair.

When Should I Switch from Full Coverage to Liability?

If your vehicle is older or its current value is low, you might consider eventually switching to liability. However, this decision should also consider your ability to cover any losses that you may need to pay out-of-pocket.

Additional Coverages and Policy Extras

While the core parts of full coverage insurance are important, additional coverages can further protect you.

Optional coverages like roadside assistance or rental car reimbursement can provide extra protection and convenience. Consider your personal needs and lifestyle to determine if these coverages are right for you.

Personal Injury Protection

If you’re in a car accident, whether or not you’re at fault—having Personal Injury Protection (PIP) can help cover any medical expenses for you and any passengers you have in your vehicle. Depending on your health insurance, PIP might be a valuable addition to your policy.

Uninsured or Underinsured Motorist Coverage

This coverage protects you if you're involved in an accident with an at-fault driver who doesn't have enough insurance or any at all. In today's world, having this coverage could be a wise choice.

Other Frequently Asked Questions

Let's answer a few more questions to enhance your understanding.

Can I Purchase Only Parts of a Full Coverage Policy?

Yes, depending on your state and insurance company, you might be able to purchase only parts of a full coverage policy.

Which States Require Full Coverage Car Insurance?

While no states legally requires drivers to have full coverage car insurance, which includes collision, comprehensive, and potentially PIP coverage (unless it's already state-mandated), these additional protections can be helpful. It's important to note that minimum insurance won't cover damage you cause to your own vehicle, whether in an accident or due to other incidents like storms or falling branches. However, collision and comprehensive insurance can cover these types of damages, providing reimbursement.

While these additional coverages can significantly increase your policy cost, they're recommended, particularly for newer car owners who can afford them. Check your state’s motor vehicle department website for specific information.

Now You Understand What Full Coverage Is and Why It’s Important

Knowing what full coverage car insurance is and when it's worth the cost is important for any car owner. It's not just about meeting legal requirements but also about providing peace of mind while you're on the road.

If you found this article helpful and wish to explore more topics, check out some of our related articles below. With a better understanding of full coverage insurance, you're now equipped to make informed decisions that best suit your needs.

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