What Does Full Coverage Auto Insurance Actually Mean?

“I have full coverage.”

Insurance agents hear that phrase all the time.

But here is the important part:

There is no such thing as a single auto insurance policy called “full coverage.”

“Full coverage” is just an informal phrase people use to describe a combination of coverages—usually liability, comprehensive, and collision.

The problem is that two people can both say they have “full coverage” while having completely different limits, deductibles, and optional protections.

“Full Coverage” Does Not Mean Everything Is Covered

Imagine you are involved in an accident and your vehicle needs to spend two weeks in the repair shop.

You tell the claims adjuster:

“That’s okay. I have full coverage.”

Then you discover your policy does not include rental reimbursement.

Your collision coverage may help repair your vehicle, but you could still be paying for a rental car yourself.

Or maybe your collision deductible is $2,000 instead of the $500 you thought you had.

That is why we encourage customers to stop asking whether they have “full coverage” and start asking:

“What coverages do I actually have?”

What Do People Usually Mean by “Full Coverage”?

Most people use the phrase to describe three main coverages:

Liability Coverage

Liability insurance helps pay for injuries or property damage you are legally responsible for causing to someone else.

Having comprehensive and collision does not automatically mean you have strong liability limits.

You could have what someone calls “full coverage” and still carry very low liability limits.

Collision Coverage

Collision coverage helps pay for damage to your vehicle after a covered collision.

You also choose a deductible, such as $500, $1,000, or another amount.

Comprehensive Coverage

Comprehensive coverage helps protect your vehicle from certain losses that are not traditional collisions, such as:

• Theft

• Hail

• Fire

• Vandalism

• Flood

• Hitting an animal

Again, having all three does not mean everything is covered.

There is still no true “full coverage” policy.

What Could Still Be Missing?

A policy with liability, comprehensive, and collision may still leave out important protections such as:

Rental reimbursement — Helps pay for a rental vehicle while your car is being repaired after a covered loss.

Roadside assistance — Helps with certain towing or roadside expenses.

Uninsured motorist coverage — Can help protect you if the at-fault driver does not have insurance.

Underinsured motorist coverage — Can help when the at-fault driver has insurance, but not enough to cover your injuries.

Your limits and deductibles also matter just as much as the names of the coverages.

Two People Can Both Say “Full Coverage” and Have Very Different Policies

One driver might have:

Liability: 30/65/25
Collision deductible: $2,000
Comprehensive deductible: $1,000
Rental coverage: None

Another might have:

Liability: 250/500/100
Collision deductible: $500
Comprehensive deductible: $250
Rental coverage: Included

Both may tell their friends they have “full coverage.”

Clearly, they do not have the same protection.

Stop Asking for “Full Coverage”

Instead, ask your insurance agent:

• What are my liability limits?

• What are my comprehensive and collision deductibles?

• Do I have uninsured and underinsured motorist protection?

• Do I have rental reimbursement?

• Do I have roadside assistance?

• What happens if my vehicle is totaled?

• Are there any important coverages I declined?

Your declarations page should show the actual coverages, limits, and deductibles on your policy.

Know What You Are Paying For

The phrase “full coverage” can create a false sense of security because it sounds like everything is protected.

But there is no such thing as an auto policy that simply covers everything.

At Tommy Thomsen Insurance, we would rather show you exactly what your policy covers, what your limits are, and where potential gaps may exist.

Let’s Review Your Auto Insurance

If you are not sure what your “full coverage” actually includes, let us review it with you.

Request an auto insurance quote through our website or call Tommy Thomsen Insurance at 801-982-7200.

We will explain your coverage in plain language so you know exactly what protection you actually have before an accident happens.

This article provides general insurance information and is not a guarantee of coverage. Available coverages, limits, deductibles, exclusions, requirements, premiums, and claim payments vary by insurer, vehicle, policy, and circumstances of the loss.