What Is Full Coverage Insurance?


Quick Answer

There's no such thing as full coverage insurance as most people think of it. In actuality, full coverage insurance is a combination of multiple auto insurance types that together cover most possibilities. These insurance types include the state-mandated coverage required by law along with collision and comprehensive coverage.

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Full Answer

State-mandated coverage differs according to each state, but generally requires that an insurance policy carry a minimum of liability insurance. The liability insurance must cover injuries as well as property damage to avoid the state's having to pay for an accident. State-mandated insurance usually requires a certain amount of coverage, though more coverage can be obtained from most carriers.

Collision coverage is the second portion of what's considered full coverage insurance. With collision coverage, the policyholder is covered for damage done to the holder's vehicle and property. This ensures that the vehicle can be quickly repaired or replaced in the event of an accident.

The final part of full coverage insurance is comprehensive coverage, which covers non-accident-related damage. With comprehensive coverage, the vehicle is covered for anything from theft, to vandalism, to hail damage. As with state-mandated coverage, both collision and comprehensive coverage can vary by the amount of insurance that can be carried.

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