Is Full Coverage Really “Full” Coverage?

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You pay for “full coverage,” so you might assume you are protected from just about anything. Unfortunately, that is not always the case.

The phrase “full coverage” is commonly used when talking about auto insurance, but it can be misleading. There is no single policy that covers every accident, type of damage, or unexpected expense. In most cases, full coverage simply means you have liability insurance along with comprehensive and collision coverage.

While that combination can provide strong protection, your policy may still have limits, exclusions, and deductibles that affect what you pay after a claim. Knowing what “full coverage” actually means can help you better understand your insurance and determine whether you have the protection you need.

What Does “Full Coverage” Usually Include?

When people say they have full coverage, they are usually referring to a policy that includes liability, collision, and comprehensive coverage.

Liability coverage helps pay for injuries or property damage you cause to someone else in an accident. It does not pay for damage to your own vehicle.

Collision coverage helps pay to repair or replace your vehicle if it is damaged in a collision with another vehicle or object, regardless of who caused the accident.

Comprehensive coverage helps protect your vehicle from damage that is not caused by a collision. This may include theft, vandalism, hail, falling objects, fire, or damage caused by animals.

Together, these coverages provide more protection than liability insurance alone, but they still do not cover every possible situation.

What Might Not Be Included?

Even with a full coverage policy, there may be certain expenses that are not automatically covered.

For example, roadside assistance, rental car reimbursement, and gap insurance are often optional coverages that must be added separately. Your policy may also not cover personal belongings stolen from your vehicle, normal wear and tear, or mechanical breakdowns.

Medical expenses may also depend on whether your policy includes coverage such as medical payments or personal injury protection.

Because every policy is different, it is important to review your specific coverages instead of assuming everything is included.

Full Coverage vs. Minimum Coverage

Minimum coverage generally refers to the amount of auto insurance required by your state. This usually includes liability coverage, which helps pay for injuries or property damage you cause to others in an accident. However, minimum coverage typically does not pay for damage to your own vehicle.

Full coverage usually includes liability insurance along with collision and comprehensive coverage. This can provide broader protection for both you and your vehicle, especially after an accident, theft, storm damage, or another covered event.

While minimum coverage may cost less, it can also leave you with more out-of-pocket expenses after a loss. The right choice depends on factors such as your vehicle’s value, your budget, and how much financial risk you are comfortable taking on.

Optional Coverages Can Fill the Gaps

Depending on your needs, you may want to add optional coverages to your auto insurance policy.

Some common options include:

  • Uninsured and underinsured motorist coverage to help protect you if the other driver does not have enough insurance.
  • Rental reimbursement coverage to help pay for a rental vehicle while your car is being repaired after a covered claim.
  • Roadside assistance for services such as towing, jump-starts, or flat tires.
  • Gap coverage to help cover the difference between what you owe on a vehicle and its actual value if it is totaled.
  • Medical payments coverage to help with certain medical expenses after an accident.

The right combination of coverages will depend on your vehicle, financial situation, and individual needs.

Conclusion

“Full coverage” can offer a much wider level of protection than minimum coverage, but the name can make it sound more complete than it really is. Every auto insurance policy has its own limits, deductibles, exclusions, and optional coverages, so it is important to understand exactly what is included before you need to file a claim.

Taking time to review your policy can help you spot possible gaps and make sure your coverage still matches your vehicle, budget, and needs. If you are unsure what your current policy includes, talking with your insurance agent can help you better understand your options and choose the protection that makes the most sense for you.

You can experience the benefits of being a part of a full-service Independent Insurance Agency today! Simply contact Briggs Agency, Inc. if you are interested in an insurance review at 219-769-4840 or visit our website at www.BriggsAgency.com. We look forward to hearing from you!

 

Blog Post written by: Alex Condes