"Full coverage" is one of the most commonly used — and most misunderstood — terms in auto insurance. It's not actually a specific policy type. Here's what it really means and how to decide if you need it.
What "Full Coverage" Actually Means
There's no standard insurance industry definition of "full coverage." When most people say it, they mean a policy that includes liability, collision, and comprehensive coverage — the three main types of auto insurance combined into one policy.
Think of it this way:
- Liability only = covers damage you cause to others
- Full coverage = covers damage you cause to others AND damage to your own vehicle
The Components of Full Coverage
Liability coverage
This is required by law in nearly every state. It pays for:
- Bodily injury liability — Medical expenses, lost wages, and legal costs for people you injure in an accident you cause
- Property damage liability — Repair or replacement costs for other people's property (usually their vehicle) that you damage
Liability coverage does NOT pay for your own injuries or vehicle damage.
Collision coverage
Pays to repair or replace your vehicle when it's damaged in a collision — regardless of who's at fault. This includes:
- Hitting another vehicle
- Hitting a stationary object (pole, guardrail, tree)
- Single-vehicle rollovers
Comprehensive coverage
Pays for damage to your vehicle from non-collision events, including:
- Theft or vandalism
- Weather events (hail, floods, falling trees)
- Animal strikes (hitting a deer, for example)
- Fire
- Falling objects
- Broken windshield
Additional Coverages Often Included
Many "full coverage" policies also include:
- Uninsured/underinsured motorist — Covers you if you're hit by a driver with no insurance or insufficient insurance. Required in some states.
- Medical payments (MedPay) or Personal Injury Protection (PIP) — Covers your medical expenses regardless of fault. PIP is required in no-fault states.
- Roadside assistance — Towing, flat tire changes, lockouts, and jump-starts. Usually a low-cost add-on.
- Rental car reimbursement — Pays for a rental while your car is being repaired after a covered claim.
What Full Coverage Does NOT Cover
Even a "full coverage" policy has limits:
- Mechanical breakdowns — That's what warranties are for
- Wear and tear — Normal depreciation isn't covered
- Personal belongings — Items stolen from your car are covered by renters or homeowners insurance, not auto insurance
- Commercial use — If you drive for a rideshare company or delivery service, you need a separate commercial or rideshare policy
- Intentional damage — Insurance doesn't cover damage you cause on purpose
Do You Need Full Coverage?
Yes, if:
- You have a car loan or lease (your lender requires it)
- Your car is worth more than about $4,000
- You couldn't afford to replace your car out of pocket
- You drive frequently or in high-traffic areas
Maybe not, if:
- You own your car outright and it's older
- The car's value is low enough that collision/comprehensive premiums approach the car's worth
- You have savings to cover a replacement if needed
A common rule of thumb: if your annual collision + comprehensive premium exceeds 10% of your car's current value, consider dropping those coverages and keeping liability only.
How to Get the Best Price on Full Coverage
Full coverage costs more than liability only — typically two to three times more. But the price difference between carriers can be significant. Comparing quotes is the best way to find the right balance of coverage and cost.
Compare full coverage quotes on Quorrio — enter your information once and see side-by-side options from top carriers.