"Full coverage" car insurance isn't a single, standardized policy but a common term for a combination of three core coverages that protect both you and your vehicle: liability, collision, and comprehensive. While state laws only require liability insurance, lenders mandate full coverage if you lease or finance your car to protect their financial interest. The goal is to create a safety net for a wide range of incidents, from accidents you cause to damage from theft, weather, or vandalism.
A typical full coverage policy includes:
- Liability Coverage: This is legally required and covers injuries and property damage you cause to others. It's split into Bodily Injury (BI) per person/per accident and Property Damage (PD).
- Collision Coverage: This pays for damage to your own car resulting from a collision with another vehicle or object, like a guardrail, regardless of who is at fault.
- Comprehensive Coverage: This covers damage to your car from non-collision events. Think of it as "everything else" protection, including theft, fire, falling objects, vandalism, and contact with animals.
To make your policy truly robust, you should strongly consider these add-ons:
- Uninsured/Underinsured Motorist (UM/UIM): Protects you if you're hit by a driver with little or no insurance.
- Medical Payments (MedPay) or Personal Injury Protection (PIP): Covers medical expenses for you and your passengers.
The cost of full coverage isn't fixed. Your deductible—the amount you pay out-of-pocket before insurance kicks in—directly impacts your premium. A higher deductible means a lower monthly bill, but more upfront cost if you file a claim. Your coverage limits also play a huge role. The table below shows how different coverage levels can affect your premium and protection.
| Coverage Type | State Minimum (Low Protection) | Recommended Level (Strong Protection) | High-End Level (Maximum Protection) |
|---|
| Bodily Injury Liability | $25,000/$50,000 | $100,000/$300,000 | $250,000/$500,000 |
| Property Damage Liability | $10,000 | $50,000 | $100,000 |
| Collision Deductible | $1,000 | $500 | $250 |
| Comprehensive Deductible | $1,000 | $500 | $250 |
| Uninsured Motorist BI | $25,000/$50,000 | $100,000/$300,000 | $250,000/$500,000 |
You should reevaluate your need for full coverage as your car ages. If your car's market value is low, paying for collision and comprehensive might not be cost-effective, as the insurance payout after a deductible could be minimal.
