What does full coverage insurance cover?

Here’s what full coverage car insurance covers -

Liability insurance: It consists of two coverages - bodily injury liability and property damage liability. 

  • Bodily injury liability helps pay for the medical expenses, rehabilitation, and sometimes lost wages of other people involved in an accident for which you are at fault.
  • Property damage liability covers the costs of repairing or replacing someone else's property, such as their vehicle or other structures, if you are at fault in an accident.

Collision coverage pays for the repairs to your own vehicle in the event of a collision with another vehicle or object.

Comprehensive coverage covers non-collision events, such as theft, vandalism, natural disasters, or hitting an animal.

Additional coverages 

  • Uninsured/underinsured motorist coverage steps in if you are involved in an accident with an uninsured driver or a driver with insufficient insurance. 
  • Medical payments coverage helps pay for your medical bills and expenses and those of your passengers, regardless of who is at fault in an accident.
  • Personal injury protection (PIP) goes beyond MedPay and covers additional expenses like lost wages, childcare, and funeral costs. It provides extensive protection for you and your passengers.

What does full coverage not cover?

While full coverage car insurance provides extensive protection, it doesn't cover everything. 

  • Routine maintenance. Full coverage won't pay for regular car maintenance like oil changes, tire rotations, or brake replacements.
  • Wear and tear. It doesn't cover the natural wear and tear that occurs over time, such as the aging of your car's parts.
  • Custom equipment. If you've added special features or modifications to your car, these might not be fully covered.
  • Business use. If you use your car for business purposes, you might need additional coverage beyond full coverage.

The specifics may vary by insurance company, so it's important to read your policy and understand what is and isn't covered. If you have questions, it's always a good idea to discuss them with your insurance company or agent.

Does full coverage cover everything?

Full coverage car insurance does not cover everything, but it typically includes comprehensive and collision coverageCollision coverage helps pay for repairs or replacement of your car if it's damaged in an accident, regardless of who is at fault and is subject to a deductible. as well as liability coverage. 

Comprehensive coverage protects against theft, vandalism, and natural disasters, while collision coverage pays for damage from a crash. However, full coverage may not cover every type of collision or incident, and the specific coverages can vary by insurer. It's important to review the details of your policy to understand what is and isn't covered.

Final thoughts

Full coverage car insurance is designed to provide a higher level of protection compared to basic insurance policies. It offers peace of mind by covering a wide range of potential risks and expenses associated with owning and driving a car. 

However, it's important to note that full coverage does not cover everything and may have certain limitations, exclusionsItems that are specifically denied coverage under the terms of an insurance policy. For example, most auto insurance policies exclude coverage for normal wear and tear, drag racing and intentional acts., and deductibles that vary depending on the insurance provider and policy.

Frequently Asked Questions

Do I need full coverage on a financed car?

Yes, it's usually required to have full coverage on a financed car. Lenders often mandate it to protect their investment in case of an accident or damage to the vehicle.

Do I need full coverage on my car?

It depends on your situation. If your car is financed, your lender will require you to carry full coverage. If you own your car outright, it's optional but can provide extra protection for your vehicle.

Tip iconHelpful auto insurance tools and calculators