What's Covered Under Full Coverage Car Insurance and How Much It Costs

Full coverage car insurance is a type of policy that covers a wide range of expenses in the event of an accident or other damage to your vehicle. This includes liability coverage, collision coverage, comprehensive coverage, and personal injury protection.

Liability coverage is a must-have in most states, and it's included in full coverage policies. It pays for damages to other people or property if you're found at fault in an accident. For example, if you're involved in a fender bender and the other driver's car is damaged, liability coverage will help pay for the repairs.

Comprehensive coverage, on the other hand, covers damages to your own vehicle that are not related to an accident, such as theft, vandalism, or natural disasters. This type of coverage is optional, but it's a good idea to have it if you live in an area prone to severe weather or have a valuable vehicle.

The cost of full coverage car insurance varies widely depending on factors such as your age, driving history, location, and the type of vehicle you drive. On average, full coverage policies can cost anywhere from $150 to $300 per month.

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Full coverage car insurance is a bit of a misnomer. It doesn't actually cover everything, but rather a combination of state-mandated policies and additional coverages. Liability insurance is a requirement in almost all states, covering costs for the other party's injuries and repairs in the event of a covered accident.

The term "full coverage" is often used by lenders when financing or leasing a vehicle, requiring you to carry comprehensive and collision insurance, plus any other coverages your state mandates. But what does this actually mean? Let's break it down.

A full coverage car insurance policy typically consists of liability, collision, and comprehensive coverage. Liability insurance covers the other party's injuries and repairs, while collision insurance covers damage to your vehicle if you're found at fault in an accident. Comprehensive insurance covers damages to your vehicle that aren't caused by a collision, such as accidents related to weather, theft, or fire.

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Here's a quick rundown of the typical coverages included in a full coverage car insurance policy:

It's worth noting that the security of your auto insurance depends on many factors, including your policy limits and deductible amounts.

Full coverage car insurance is often misunderstood, but it's not as straightforward as it sounds. Your lender may require you to carry comprehensive and collision coverage, in addition to state-mandated liability insurance.

In nearly every state, liability insurance is a mandatory coverage. This means you're required to have it, but the specific requirements vary by state.

Comprehensive and collision coverage, on the other hand, are optional. However, your lender may still require you to carry them if you're financing or leasing a vehicle.

Paying for every protection offered by your insurance company can get expensive. You might consider customizing coverages to suit your needs and budget.

Your lender may consider the state-minimum liability as sufficient, but that may not be enough coverage to protect you and other drivers on your policy.

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Full coverage car insurance is a bit of a misnomer - it's not a single policy type offered by insurance companies. Instead, it's a combination of three key coverages that provide a solid foundation for protection.

Liability insurance is a must-have in almost all states, covering costs for the other party's injuries and repairs in the event of a covered accident where you're found at fault.

Collision insurance can cover damage to your vehicle if you're found at fault in a collision, but it doesn't cover the other party's vehicle or anyone's bodily injuries.

Comprehensive insurance covers certain damages to your vehicle that aren't caused by a collision with another car, such as accidents related to weather, theft, or fire.

These three insurance types - liability, collision, and comprehensive - form the core of a "full" coverage package. However, your auto insurance security depends on many factors, including your policy limits and deductible amounts.

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Here's a breakdown of the three main coverages that make up full coverage car insurance:

Additional coverages, such as personal injury protection, medical payments coverage, and uninsured motorist coverage, may also be required or recommended based on your personal circumstances.

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A "full coverage" car insurance policy is essentially a combination of three types of coverage: Liability, Collision, and Comprehensive. This is because "full coverage" isn't a specific type of coverage, but rather a term used to describe a policy that includes these three coverages.

Liability insurance covers costs for the other party's injuries and repairs in the event of a covered accident in which you're found at fault. Comprehensive insurance, on the other hand, covers certain damages to your vehicle that are not caused by a collision with another car.

Here are the three main types of coverage included in a "full coverage" policy:

Comprehensive coverage pays for repairs to your vehicle if it's damaged due to a cause aside from a collision with another car or stationary object, such as fires, hail, floods, or theft.

Collision coverage pays for the cost of repairing or replacing your car if it collides with another vehicle or object, or if it rolls over.

This type of policy also covers damage caused by potholes.

Collision coverage doesn't cover mechanical breakdown and normal wear and tear.

If the other driver is at fault, you can file a claim against their auto liability coverage.

Collision coverage is an optional coverage type in most cases unless required by your bank or lender while you're paying off a car loan.

This coverage pays the costs to repair your vehicle if you're at fault in an accident—for example, if you hit another car or a stationary object, such as a light pole or mailbox.

Here are some key things to know about collision coverage:

Comprehensive coverage is a type of insurance that covers damage to your vehicle caused by events other than a collision, such as hail, fire, or a flood. Comprehensive coverage also covers theft and vandalism.

Comprehensive coverage is often bundled with collision coverage, and together they're sometimes referred to as "full coverage." However, "full coverage" isn't a specific type of coverage, but rather a general term used to describe a policy that includes liability, comprehensive, and collision coverages.

Comprehensive coverage pays for repairs to your vehicle if it's damaged due to a cause aside from a collision with another car or stationary object. This can include damage from fires, hail, floods, falling tree branches, glass breakage, hitting an animal, theft, and burglary.

Some incidents that comprehensive coverage typically covers include:

Comprehensive coverage is optional if you're the owner of the vehicle, but car dealerships, banks, and other lenders may require you to carry these types of coverages if you're leasing a vehicle or taking out a car loan.

Full coverage car insurance may sound like it covers everything, but it's not a catch-all policy. In fact, there are several scenarios where you'll be left paying out of pocket.

Damage due to wear and tear is one example. You'll need to pay for repairs to your vehicle if it's damaged from normal use, such as worn-out tires or a cracked windshield.

Some other things that aren't covered by full coverage car insurance include gap insurance, rental car reimbursement, roadside assistance, and new car replacement. These add-ons are often required by lenders or can be purchased separately to provide additional protection.

Here's a quick rundown of what's not covered by full coverage car insurance:

Liability coverage is a crucial part of any car insurance policy, but it doesn't cover everything. Liability insurance covers the costs for the other party's injuries and repairs in the event of a covered accident where you're found at fault. It's often considered the foundation of a car insurance policy, as almost all states require drivers to carry this form of coverage.

Liability car insurance comes in two parts: Bodily Injury Liability (BI) and Property Damage Liability (PD) coverage. BI coverage pays for the medical and treatment costs of the injured party, as well as lost income and death benefits if necessary. PD coverage compensates the other party for the losses and damage they incur due to an at-fault collision.

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In most states, liability coverage helps cover the other party's injuries and property damage costs. For example, your liability auto insurance may cover the other driver's medical bills, vehicle repairs, other property repairs, lost wages, and legal expenses in the case of a lawsuit. The minimum required amounts vary by state, with bodily liability limits typically higher than physical damage limits.

Here's a breakdown of the minimum required limits in California and Texas:

These limits may be much lower than the costs you're responsible for if you cause an accident. Having "full coverage" can mean having more than the minimum required coverage, which can provide greater protection for your assets.

Personal protection is a crucial aspect of insurance coverage.

Personal injury protection (PIP) insurance covers medical treatment costs, lost income, and household services if you're injured in an accident.

This type of coverage also pays out a death benefit, which can be used to cover funeral and burial costs.

Medical payments (MedPay) coverage works similarly to PIP but doesn't cover lost income.

It can serve as primary medical insurance or supplemental coverage for your health insurance.

As primary coverage, MedPay pays for immediate hospital and treatment expenses, while your health insurance covers the rest.

If used as supplemental coverage, MedPay reimburses deductibles and co-pays.

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Uninsured/Underinsured Motorist coverage is designed to fill the gap between costs and the at-fault driver's ability to pay.

UM coverage compensates you and your passengers for injuries and property damage if you're hit by an uninsured driver.

You can gain a deeper understanding of how car insurance works by checking out this comprehensive guide.

If your brand-new car is totaled in the first year, you'll need a new car replacement endorsement to cover the cost of buying a vehicle of the same make and model. This type of coverage is only available with full coverage insurance.

You'll also need guaranteed auto protection or GAP insurance if a leased or financed vehicle is totaled. This add-on will pay off what you owe, but it can't be combined with new car replacement insurance.

If you're involved in an accident, you might need rental car reimbursement insurance to cover the cost of a temporary ride while your vehicle is under repair. This type of coverage is not included in full coverage insurance.

Damage due to wear-and-tear is not covered by full coverage insurance. You'll need to pay for these repairs yourself.

Here are some common scenarios that full coverage car insurance doesn't cover:

These are just a few examples of what's not covered by full coverage car insurance. It's essential to review your policy carefully and understand what's included and what's not.

Full coverage car insurance may sound like it covers everything, but it's not a magic solution that protects you against every risk. In fact, there are several scenarios that full coverage car insurance doesn't cover.

Damage due to wear and tear is one of them. You'll have to pay for repairs out of pocket if your vehicle sustains damage from normal use over time.

Some lenders or insurers require full coverage to qualify for GAP insurance, which pays off the balance if you total a leased or financed vehicle and owe more than it's worth.

Rental car reimbursement, roadside assistance, and new car replacement are also not covered by full coverage car insurance.

Here are some scenarios that full coverage car insurance doesn't typically cover:

These exclusions can leave you with unexpected expenses, so it's essential to review your policy carefully and understand what's included and what's not.

In most states, liability coverage is mandatory, but the minimum required amounts vary by type. The bodily liability limits are typically higher than the physical damage limits.

California and Texas have different minimum limits for bodily injury or death to one person: California is $15,000, while Texas is $30,000. For property damage, California's minimum is $5,000, and Texas is $25,000.

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If you cause an accident, having "full coverage" can mean having more than the minimum required coverage. For example, a "full coverage" policy in California might have a bodily liability limit of $100,000.

Higher limits can afford you greater protection for your assets, but if the other driver sues you for damages exceeding your limits, you could be required to pay out of pocket and lose your assets in a lawsuit.

In some cases, you might be hit by an uninsured driver, and that's where UM coverage comes in. It compensates you and your passengers for the injuries and property damage you sustain.

If the at-fault driver's auto policy isn't enough to cover the entire costs, UIM coverage pays out. This can be especially important in cases where the other driver's policy limits are low.

Here are the minimum bodily liability limits for California and Texas: