What Is Full Coverage Auto Insurance?
Full coverage auto insurance is an informal term for a policy that combines liability insurance with collision and comprehensive coverage to protect both your legal responsibility and your own vehicle.
Get Quotes Based on Your RecordWhat Is Full Coverage Insurance?
Full coverage combines liability insurance (bodily injury and property damage to others), collision coverage (damage to your car from accidents), and comprehensive coverage (damage from theft, weather, vandalism, animals). Liability pays for harm you cause to others, collision repairs your vehicle after crashes regardless of fault, and comprehensive covers non-collision damage. Many policies also include uninsured motorist coverage and medical payments coverage as part of a full coverage package, though these aren't universally included in the definition.
Who Needs Full Coverage Insurance?
Full coverage is essential if you're financing or leasing a vehicle, since lenders require collision and comprehensive to protect their collateral until you own the car outright.
Calculate your car's actual cash value, then multiply your annual collision and comprehensive premium by 2–3 years to see your total coverage cost over that period. If that total approaches or exceeds your car's value, and you have savings to cover a potential loss, liability-only becomes financially defensible.
How Much Does Full Coverage Insurance Cost?
- Vehicle value and repair costs directly affect collision and comprehensive premiums—newer cars and luxury vehicles cost significantly more to insure with full coverage than older economy models.
- Your age and credit-based insurance score affect all coverage types, but drivers under 25 or with poor credit scores see particularly steep increases when adding collision and comprehensive to their policies.
