What Is Full Coverage Car Insurance?
Full coverage car insurance isn’t a single policy — it’s a term used to describe a package of coverages that protect both you and other drivers. At a minimum, it includes liability, collision, and comprehensive insurance.
- ✔ Liability – covers others if you’re at fault
- ✔ Collision – covers your car after a crash
- ✔ Comprehensive – covers theft, weather, vandalism
- ✘ Does not automatically include extras like rental, GAP, or roadside
What Does Full Coverage Include?
Full coverage usually combines three core protections:
Why Do Drivers Choose Full Coverage?
Most drivers choose full coverage for peace of mind, especially if they:
- Own a new, financed, or leased car
- Live in areas with high accident or theft rates
- Want protection from large out-of-pocket repair or replacement costs
Is Full Coverage Required?
No state law requires “full coverage.” However, lenders and leasing companies almost always require it until your car is paid off. After that, it’s your choice whether to keep or drop it.
What’s Not Included in Full Coverage?
“Full coverage” doesn’t mean “everything.” You may still need to add optional protections such as:
How Much Does Full Coverage Cost?
On average, full coverage costs about 2–3× more than liability-only policies. Price depends on factors like:
- Your driving history and claims record
- Your vehicle’s age, make, and model
- Your ZIP code and local risk factors
- Your chosen deductibles and limits
Should You Drop Full Coverage on an Older Car?
If your car’s value is low and it’s paid off, you may save money by switching to liability-only. But if replacing or repairing it out-of-pocket would be a hardship, full coverage is still worth considering.
Real-World Example
Scenario: You’re in a collision that totals your financed car.
- Liability only: Pays for the other driver’s damages, but you get nothing for your own car. You still owe the loan balance.
- Full coverage: Collision coverage pays your car’s actual cash value, helping you pay off the loan and replace your vehicle.
Frequently Asked Questions About Full Coverage
Does full coverage cover rental cars?
Not automatically. You’ll need to add rental reimbursement coverage if you want that protection.
Is full coverage the same everywhere?
No. Each insurer defines “full coverage” differently, but it generally means liability + collision + comprehensive.
Does full coverage include roadside assistance?
No. Roadside assistance is usually optional and must be added separately.
When should I drop full coverage?
Many drivers drop it once their car’s value is less than the annual cost of coverage. However, it depends on your financial situation.
Does full coverage cover mechanical breakdowns?
No. Car insurance does not cover wear-and-tear or mechanical issues. That would fall under a warranty or repair plan.