Everything You Need to Know About Full Coverage Insurance

Last updated May 11, 2022

Do you know what type of car insurance coverage you need to receive financial protection in the event of an at-fault accident, no-fault collision, or damage from hail, theft, or an animal? Do you know if your auto insurance covers your medical bills if you’re hurt in an accident?

With multiple types of car insurance coverage available, it can be tricky to know if you’re adequately protected and in what circumstances.

One way to ensure you are covered under nearly any circumstance is to purchase full coverage insurance. But what is full coverage insurance? Interestingly, “full coverage” isn’t actually an insurance policy. So what is it?

Learn everything you need to know about full coverage insurance to receive the best protection in all situations.

What Is Full Coverage Insurance?

When people talk about full coverage insurance, they typically mean purchasing multiple types of insurance to provide financial assistance in various situations. Because there is no such thing as a full coverage insurance policy, it’s achieved by combining all the coverage types available, purchased individually for complete protection. To receive full coverage, you need to choose the insurance types required by law in your state, as well as additional policies.

What Does Full Coverage Insurance Cover?

Some types of auto insurance coverage are required by law, depending on the state in which you live. Others are optional. To receive full coverage, you would purchase all required and optional coverage types to obtain financial protection in any situation, including:

Liability Insurance: Both bodily injury liability and property damage liability to cover the cost of damages to another person or their vehicle during an accident you caused
Collision Insurance: To cover the cost of repairs or a replacement to your own vehicle for an at-fault or no-fault accident
Personal Injury Protection: To pay for your medical bills and loss of income associated with an accident
Uninsured and Underinsured Motorist Protection: To cover the cost of damages if the other person (who is at fault for the accident) doesn’t have proper insurance
Comprehensive Insurance: To cover damages to your vehicle that are not related to an accident, such as theft or weather-related incidents
Medical Payments: To pay for the medical bills of you or your passengers
Other Types of Car Insurance: Rental reimbursement coverage, classic car coverage, etc.

Types of Full Coverage Insurance

To create a full coverage insurance policy, drivers can choose the type and amount of coverage they want, so long as it meets state requirements. Some people consider full coverage to be their state’s minimum requirements, plus collision and comprehensive coverage. Others want even more protection and add medical payments or uninsured/underinsured motorist coverage to their policy.

Do I Need Full Coverage Insurance?

Most drivers do not need full coverage insurance to operate their vehicle legally. However, if you lease or finance your car, your lender may require you to include collision and comprehensive coverage on your policy for the loan duration.

Full coverage is optional in all states; however, many drivers add coverage types to their policy for additional protection. Because the meaning of “full coverage” varies, drivers can choose the types and amounts of insurance that give them peace of mind while on the road.

If you log a lot of miles on the roads driving to or from school or work, or if you live in a state where inclement weather increases the chance of car damage, you may benefit from complete coverage. Overall, the decision of whether or not to purchase full coverage insurance and what that looks like to you depends on your state’s laws and your financial situation.

Find Affordable Full Coverage Insurance

Whether you live in a major city or a small town, accidents can and do happen. That’s why many drivers choose to purchase full coverage insurance. If you want full coverage to protect yourself, your family, and your belongings in the event of an accident, it’s time to start comparing quotes to find the most affordable policies.

Remember, full coverage insurance is a combination of multiple coverages and typically includes liability coverage, collision damage, comprehensive damage, personal injury protection (PIP), and uninsured/underinsured motorist coverage. You can also add or omit optional coverage types depending on your budget and needs.

Submit your information today to compare quotes for full coverage insurance to find the best policies for you!

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