Learn more about full coverage insurance, including liability, collision, and comprehensive coverage. Explore deductibles, policy limits, exclusions, coverage requirements, and important factors that may affect an auto insurance policy. Understand how different coverage types work together and review useful information when researching vehicle insurance protection and policy options.
Learn more about insurance full coverage and what the term generally means in auto insurance. Although “full coverage” is commonly used, it is not a specific policy type or standardized package. The National Association of Insurance Commissioners explains that auto insurance can include several separate coverages, including liability, collision, comprehensive, uninsured or underinsured motorist protection, and medical coverage depending on the state and policy. Understanding these coverage types can help readers review an insurance policy more clearly. This guide explains how full coverage is commonly structured, what different sections may protect, how deductibles work, and why policy details and state requirements should always be reviewed carefully.
“Full coverage” is commonly used to describe an auto policy that includes liability coverage along with collision and comprehensive coverage. However, the term does not have one standardized legal definition. The exact coverage included depends on the policy and state requirements.
Common components may include:
Liability insurance generally helps cover injuries or property damage that an insured driver causes to other people. Most states require drivers to maintain minimum liability coverage, although the required limits vary by state.
Liability coverage commonly includes:
Collision coverage is designed to address damage to the insured vehicle resulting from a collision. This can include hitting another vehicle, an object, or a pothole, depending on the policy terms. It can also apply when a vehicle overturns.
Important details to review include:
Comprehensive coverage generally addresses vehicle damage from events other than collisions. Examples identified by the NAIC include theft, fire, hail, windstorm, flood, falling objects, and animal impacts.
Comprehensive coverage may address:
A deductible is the portion of a covered loss that the policyholder is responsible for before the insurer pays the remaining covered amount, subject to policy terms. Collision and comprehensive coverage commonly have separate deductibles.
When reviewing a policy, check:
Auto insurance requirements are determined partly by state law, so coverage requirements can differ across the United States. Some states also require or make available medical payments coverage or personal injury protection.
This means readers should check their state's current insurance requirements rather than assuming that a particular combination of coverages applies everywhere.
Reviewing the declarations page and policy documents can help clarify what is actually included. Look beyond the phrase “full coverage” and identify the individual coverage types, limits, deductibles, exclusions, and conditions.
Useful items to review include: