Full Coverage Car Insurance — What It Is & Why You May Need It

Full Coverage Car Insurance protects your vehicle against accidents, theft, and weather damage with liability, collision, and comprehensive coverage. Understand what's included and explore quote options tailored to your needs.

Full Coverage Auto Insurance

When you purchase a car insurance policy, you can choose between required liability coverage or full coverage. The key difference is that liability-only policies cover injuries and damages you cause to others, while full coverage protects both third-party claims and damage to your own vehicle from accidents, theft, and weather events.

What Coverages Make Up an Auto Insurance Policy?

Liability insurance covers injuries and property damage you cause to others, while physical damage insurance protects your vehicle from collisions, theft, and weather-related losses.

The liability section includes:

Bodily Injury Liability Coverage

• This coverage is required by law in most U.S. states. It covers medical expenses and injuries you cause to others in an accident you're responsible for.

Property Damage Coverage

• This coverage is also legally required in most states and covers damage you cause to another person's vehicle or property when you're at fault in an accident.

 

The physical damage portion of an insurance policy includes:

Comprehensive Coverage

• Comprehensive Coverage protects your vehicle from non-collision damage like theft, vandalism, weather, fire, and animal-related incidents, subject to your chosen deductible.

 

Collision Coverage

• Collision Coverage responds to damages your vehicle sustains from impact with another vehicle or object, once you've paid your selected deductible.

• When you combine liability coverage with comprehensive and collision coverage on your auto insurance policy, it's classified as full-coverage car insurance.

Finding the Right Coverage for Your Car

When purchasing a new auto insurance policy, you will select the coverages and limits you want to carry on. You can speak with a licensed insurance agent or an insurance company directly to determine what coverages you must carry in your state and which ones are optional for you. Be sure to compare auto insurance quotes from different carriers to ensure that you get the auto insurance coverage you need at a price you can afford.

Every state requires minimum liability insurance coverage to legally register and drive your vehicle. However, minimum limits often aren't enough. Consider purchasing higher liability coverage to protect yourself financially. In serious accidents, minimum limits deplete quickly, potentially leaving you personally responsible for damages exceeding your policy's limits.

If you lease or finance a newer car, your lender will require comprehensive and collision coverage until the loan or lease is paid off. If you own your vehicle outright, these coverages are optional, but valuable if your car holds substantial value. Check the Kelley Blue Book to determine your vehicle's actual cash value. Comprehensive coverage protects against damage from animals, fire, theft, vandalism, and weather, while collision coverage handles damage from other vehicles or objects—both pay after you meet your deductible. Choose a deductible you can comfortably afford; higher deductibles lower premiums but aren't worth it if you can't pay them when needed.

Optional Car Insurance Coverage Worth Considering

Beyond liability and physical damage protection, additional optional coverages can provide extra financial security depending on your situation and risk tolerance.

• Medical Payments Coverage (MedPay): helps pay for medical expenses you and your passengers incur after a car accident, regardless of fault, up to your selected policy limit. Unlike Personal Injury Protection (PIP), MedPay covers only medical costs.

• Personal Injury Protection Coverage (PIP) is required in some states and optional in others. PIP covers medical expenses, lost wages, funeral costs, and essential services like childcare and housekeeping for you and your passengers following a car accident, offering broader protection than medical payments coverage alone.

• Uninsured/Underinsured Motorist Coverage protects you and your passengers if hit by an uninsured or underinsured driver. Required in some states and optional in others, UM coverage pays for medical expenses when the at-fault driver lacks adequate insurance.

• GAP Coverage: GAP coverage is part of a car insurance policy's physical damage section. If you are financing or leasing your car, you may owe your lender more than it is worth if it is totaled in an accident. In this case, GAP coverage will pay your lender for the difference between your car's actual cash value at the time of an accident and the loan amount that you have left on the car.

• This optional coverage will pay for a temporary rental vehicle at a daily rate for a specified number of days while your car undergoes repairs from a covered insurance claim.

• Roadside Assistance Coverage: This optional coverage helps when your vehicle breaks down or needs towing. It covers services like towing, battery jumps, tire repairs, locksmith assistance, fuel delivery, and more—specific benefits vary by carrier.

• This optional coverage will pay for your disabled vehicle to be towed up to a specified limit on your policy.

GAP Coverage: GAP (Guaranteed Asset Protection) coverage is part of a car insurance policy's physical damage section. If you're financing or leasing your vehicle, you may owe your lender more than the car is worth if it's totaled in an accident. GAP coverage pays your lender for the difference between your vehicle's actual cash value at the time of loss and your remaining loan or lease balance, protecting you from owing money out of pocket.

Consult with a licensed insurance agent or your insurance company to determine which optional coverages suit your situation. Many insurers offer additional coverage options beyond the standard selections to help you customize your policy.

Tips to Save on Full Coverage Auto Insurance

Car insurance rates differ significantly across providers, so comparing quotes is essential for full coverage policies. After selecting your coverage limits, maximize savings by claiming all available discounts—many insurers offer reduced rates for bundling policies, paying in full, setting up automatic payments, completing defensive driving courses, and enrolling in telematics programs that monitor your driving habits.

An account discount is one of the largest discounts available on your auto insurance policy. This discount applies when you bundle your homeowner's or renter's insurance with the same insurance company. Ask your insurance provider or agent to quote both lines of coverage to ensure you receive this savings.

 

Full Coverage Auto Insurance FAQs

Q: What is the difference between a liability-only auto policy and a full-coverage auto policy?

 

A: A liability-only auto policy covers injuries and damages you cause to others. A full-coverage auto policy includes liability protection plus comprehensive and collision coverage to repair your own vehicle after accidents, theft, or weather damage.

 

Q: Where can I buy full coverage auto insurance?

A: You can contact an independent insurance agent, speak directly to an insurance company, or compare rates online to purchase full-coverage insurance on your vehicle.

Q: How can I save money on a full-coverage auto policy?

A: You can save on your car insurance premium by exploring available discounts, such as bundling multiple policies, paying in full, setting up automatic payments, completing defensive driving courses, and enrolling in telematics programs that track safe driving habits.