When you are looking for auto insurance, you definitely have come across the term “full coverage.” So, what does full coverage car insurance cover? It may sound thorough, but it’s not just one type of insurance policy.
Typically, “full coverage” means that you have liability, collision, and comprehensive insurance coverage. The amount of protection will vary based on the policies and limits selected.
What Is Full Coverage Car Insurance?
In general, it means having several types of coverage that protect you from different risks. Liability coverage protects the other party in case of any injuries or property damage that you cause, collision coverage can help with damage to your car, and comprehensive coverage can help with damage to your car from other causes as well.
There is no single standard “full coverage” policy. The coverage in your policy will depend on your insurance company, your state laws, your deductibles, your limits and whether or not you have elected coverage.
What Does Liability Car Insurance Cover?
When you’re at fault in an accident and responsible for an injury or property damage, liability insurance helps cover the costs. Typically covers property damage liability and bodily injury liability.
Typically, Liability coverage does not cover any of the cost to fix your car after an accident you’re responsible for. This is where collision and comprehensive coverage may come into play.
What Does Collision Insurance Cover?
Collision insurance generally helps pay to repair or replace your vehicle when it is damaged in a covered collision. These may involve striking another car or an object or being damaged in some single vehicle crashes.
Collision coverage will often include a deductible. The remaining $3000 could be covered by your insurance company depending on policy limits and coverage, if your covered repair is valued at $4000 and you have a $1000 deductible.
What Does Comprehensive Car Insurance Cover?
When asking what does full coverage car insurance cover, comprehensive protection is another major piece to understand. With comprehensive, you get coverage for non-collision damage, such as those from hail or a falling tree.
This may cover theft, damage due to vandalism, damage caused by falling objects or hail, flooding or damage caused by certain animals depending on the policy.
Does Full Coverage Car Insurance Cover Theft?
Yes, most comprehensive coverage policies will typically include coverage for vehicle theft. In the event your insured vehicle is stolen and not recovered, the insurance company could pay its actual cash value (minus the deductible) under the policy provisions.
Excessively valuable items inside the car could not be covered by your auto insurance if they are stolen. Homeowners or Renters Insurance may offer different protection depending on the circumstances.
What Is Not Covered by Full Coverage Car Insurance?
Understanding what is not covered by full coverage car insurance is just as important as knowing what is covered.
Full coverage does not automatically pay for everything. Common exclusions or limitations may include:
- Routine maintenance and normal wear
- Mechanical breakdowns unrelated to a covered event
- Personal belongings inside the vehicle
- Injuries beyond the coverage provided by your policy
- Damage above your policy limits
- Certain excluded drivers or uses
- Intentional damage
Your policy documents contain the specific exclusions, conditions, and limits that apply to your coverage.
What Does Full Coverage Car Insurance Cover for Injuries?
It depends on the coverage you have in your policy and the state in which you reside. Medical payments or personal injury protection (PIP), if offered, may cover some of your or your passengers’ medical costs, and liability coverage may cover injury to others you cause.
That means what does full coverage car insurance cover for injuries can vary considerably from one policy to another. Do not assume that collision and comprehensive coverage translates to all medical expenses being covered.
Does Full Coverage Cover Damage From Weather?
Comprehensive coverage generally helps protect against many weather-related risks. For example, hail, flooding, wind damage from certain events, and falling objects may be covered depending on the circumstances.
Collision coverage generally does not cover weather damage unless the damage occurs as part of a covered collision. Always check your policy before assuming a particular event is covered.
How Do You Know If You Need Full Coverage?
If you desire to protect your own vehicle, along with providing liability coverage, full coverage might be worth considering. It also might be necessary by a lender or leasing company if you finance or lease your automobile. Before choosing your limits, it’s helpful to consider how much car insurance you actually need based on your vehicle, finances, and risk.
The comprehensive and collision coverage may be worth considering for an older car that is not worth much. Before you make a decision, do calculations for the potential benefit and compare with premium and deductible.
Conclusion:
So, what does full coverage car insurance cover? It usually includes liability, collision and comprehensive coverage but the coverage will vary based on the policy.
It’s better to know what you’re covered for rather than just using the term “full coverage.” Take time to read through your limits, deductibles, exclusions and optional protections so that you will be fully aware of what you are paying for before you get behind the wheel.
Frequently Asked Questions
What is full coverage car insurance?
It generally refers to a combination of liability, collision, and comprehensive coverage. However, it is not a standardized policy and does not cover every possible loss.
What does full coverage car insurance cover after an accident?
It may cover damage to your vehicle through collision coverage and damage you cause to others through liability coverage, depending on who was responsible and your policy terms.
Does full coverage car insurance cover theft?
Generally, yes. Theft is typically covered under comprehensive insurance, subject to your deductible and policy conditions.
What does comprehensive car insurance cover?
It generally covers non-collision damage such as theft, vandalism, hail, fire, falling objects, flooding, and certain animal-related damage.
What does collision insurance cover?
Collision coverage generally pays for covered damage to your vehicle caused by a collision with another vehicle or object, subject to your deductible.
What does liability car insurance cover?
It generally covers certain bodily injury and property damage you cause to other people when you are legally responsible for an accident.
What is not covered by full coverage car insurance?
It does not automatically cover routine maintenance, normal wear, every mechanical problem, personal belongings, or losses above your policy limits.
Does full coverage pay for mechanical problems?
Usually not. Comprehensive and collision coverage generally apply to covered accidents or events rather than ordinary mechanical breakdowns.
Does full coverage include rental car coverage?
Not automatically. Rental reimbursement is generally an optional coverage that must be added to your policy.
Is full coverage required by law?
Liability insurance is required in most states, but comprehensive and collision coverage are generally not legally required. However, a lender or leasing company may require them.