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What is Full Coverage Auto Insurance?

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Full coverage auto insurance refers to a policy that provides you with complete protection. Auto insurance is designed to transfer the financial risk of a car accident to your insurance company. In other words, if you hit someone, your insurance company will pay for property damage or injury and will defend you if the person you hit sues you. If you damage your own car or hurt yourself, a full coverage auto insurance policy will also pay for your damages. Some full coverage policies also include extra provisions such as roadside assistance and car rental coverage.

What is a Full Coverage Auto Insurance Policy?

When you get auto insurance quotes, the quoted premium will be based on a variety of different types of coverage. On both the quote and your bill, you will be able to see how much you are paying for each type of coverage. This will allow you to make an educated decision about whether the cost of the selected type of coverage is worth the amount you are paying for it.

If you opt for a full coverage auto insurance policy, generally this means that you are taking every type of coverage available so you are protected no matter what the situation. This is a much more complete type of coverage than that required as the minimum under the law.

The minimum coverage under the law protects you from financial liability only if you damage someone else. For example, liability coverage provisions- which are required by law- will pay monetary damages to another person for property loss or personal injury that you cause. However, if you opt only for liability coverage, you will have to pay your own out of pocket costs if your car gets damaged in an accident that is your fault, or if your car gets stolen.

A full coverage policy will usually include:

  • Liability: Pays damages to others and pays your legal fees if you are sued
  • Collision: Pays to repair or replace your car if you cause an accident
  • Comprehensive: Pays to repair or replace your car if it is stolen, vandalized or damaged by any non-driving event
  • Personal Injury Protection: Pays your medical bills, and the medical bills of those in your household, if they are injured in a car related incident
  • Uninsured/Underinsured Motorist Coverage: Pays for damages caused to you by a third party who isn't sufficiently insured
  • Rental Car Reimbursement: Pays the cost of a rental car when your vehicle is being repaired or replaced

Buying a full coverage auto insurance policy is a wise idea if you have a newer car, or if you cannot withstand the financial impact of having to pay your own repair or medical bills in the event of a car accident or incident.

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