💡 Key Insight: "Full coverage" is a marketing term, not an official insurance
category. It typically means liability + collision + comprehensive, but there's no standard definition.
What "Full Coverage" Usually Includes
1. Liability Coverage (Required)
Pays for damage you cause to others. Required in 49 states.
- Bodily Injury: Other people's medical bills
- Property Damage: Their car, property repairs
Typical limits: 50/100/50 or 100/300/100
2. Collision Coverage (Optional)
Pays to repair YOUR car after an accident, regardless of fault.
- Hit another car
- Hit a tree, pole, guardrail
- Single-car accident
Deductible: Typically $500-$1,000
3. Comprehensive Coverage (Optional)
Covers non-accident damage to your car.
- Theft
- Weather (hail, flood, tornado)
- Vandalism
- Hitting an animal
- Falling objects
Deductible: Typically $250-$500
What "Full Coverage" Does NOT Include
Even with "full coverage," you may not be covered for:
| Coverage Gap | What It Covers | Extra Cost |
|---|---|---|
| Gap Insurance | Difference between car value and loan balance | $20-40/year |
| Rental Reimbursement | Rental car while yours is repaired | $30-60/year |
| Roadside Assistance | Towing, flat tires, lockouts | $10-30/year |
| Uninsured Motorist | Protection from uninsured drivers | $50-100/year |
| New Car Replacement | Replaces totaled new car with new model | $50-100/year |
How Much Does Full Coverage Cost?
Average Annual Costs
| Liability Only | $545/year |
| Full Coverage (Liability + Collision + Comprehensive) | $1,674/year |
| Difference | +$1,129/year |
Full coverage costs 2-3x more than liability-only.
When Do You Need Full Coverage?
✅ Get Full Coverage If:
- You have a car loan or lease (required)
- Your car is worth more than $10,000
- You couldn't afford to replace your car
- You have a newer vehicle
❌ Consider Liability Only If:
- Your car is worth less than $4,000
- Annual premium exceeds 10% of car value
- You have emergency savings to replace car
- Car is 10+ years old