What is Full-Coverage Car Insurance?

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Full-coverage car insurance refers to a combination of coverages that financially protect your vehicle, your passengers, and other vehicles and their passengers in the case of an accident.
Investing in full-coverage car insurance can save you a lot of money in the long run—and the same can be said about the car insurance broker app Jerry.
Jerry does all the hard work of finding cheap quotes from up to 50 top insurance companies and buying new car insurance. Jerry will even help you cancel your old policy.
Continue reading to learn more about what is considered full-coverage insurance and what that might mean for you.
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What is Full Coverage?

Full-coverage auto insurance doesn’t refer to a single type of coverage, but a combination of coverages that help protect you on the road.
In most cases, the types of coverages included in a full-coverage policy include:
  • Liability coverage helps pay for the costs of the other driver’s property damage and medical injuries after an accident where you are at fault. It’s required by law in most states.
  • Collision coverage covers damages if you collide with another vehicle, guardrail, fence, or another object. It’s almost always required by lenders if you lease or finance your car.
  • Comprehensive coverage pays for repairs or replacement if your vehicle is damaged due to something other than a traffic accident. This could include theft, natural disasters, or even vandalism.
Key Takeaway While these coverages are usually included in full-coverage insurance, there are a number of other additional coverages that you can also bundle into your policy.

What other coverages are available?

There are many different types of car insurance available.
Some possible coverage options you might want to consider include:
  • Uninsured/underinsured motorist coverage covers property damage, hospital stays, and more when you’re involved in an accident where the other driver either does not have car insurance or does not have enough to cover your expenses.
  • Personal injury protection (PIP) in some states, called no-fault states, the cost of injuries that are sustained in an accident are covered by personal injury protection coverage. The bills are charged to your own insurance policy, no matter who is at fault.
  • Rental car insurance if you need to rent a car while yours is in the repair shop—following a valid insurance claim—this coverage ensures you aren’t left without a means of transportation.
  • Towing and labor coverage can pay for some of the common inconveniences you may encounter, such as spare tire installs, battery jumpstarts, lockout help, and towing.
You’ll want to invest in the types of coverages that you think you’ll actually need, so be sure to research all of your options when shopping for insurance!

What does full-coverage pay for?

When you have full-coverage insurance on your vehicle, it usually covers:
  • Damages you cause to others (up to your policy’s limits).
  • Damage to your car (up to the fair market value and minus your policy’s deductible if you are at fault or if the other driver is uninsured).
  • Damages from natural disasters, theft, vandalism, animals, etc.
  • Payment for medical treatment for you and your passengers if you are at fault in an accident.
  • The cost of injuries to you and your passengers if an uninsured driver is at fault in an accident.
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What doesn’t full-coverage pay for?

Full-coverage insurance covers most of the basics you need to drive, but it doesn’t cover the following:
  • Damage due to street racing or off-road driving
  • Use of the vehicle in a car-sharing program or a business as a delivery vehicle
  • Intentional damage
  • Destruction or confiscation of the car by government or civil authorities
  • New car replacement
Key Takeaway Going beyond the minimum liability coverage required and investing in other types of insurance can be helpful in the long term.

What are the state minimum requirements for full-coverage?

Almost every state requires drivers to purchase a minimum level of car insurance, but they typically only require bodily injury and liability coverage.
While the specifics of these coverage types may vary slightly from provider to provider, Jerry has put together a comprehensive list of the minimum car insurance required in your state.
“I would 11/10 recommend Jerry. I was originally quoted $700+ for insurance for my new car, but by using Jerry I got my payments down to $320 a month. They also have a great support team ready to answer any questions!” —Tobias F.

FAQs

What exactly does full-coverage mean?

Full-coverage auto insurance is a combination of coverages that help to protect your vehicle. It typically includes liability coverage, which is required by law in almost every state, and a combination of other coverages, such as collision and comprehensive.

What is the difference between full-coverage and liability?

A minimum level of liability insurance is required in nearly every state, so it is one of the types of coverage that falls under the umbrella of full-coverage insurance.

What are deductibles and limits?

A deductible is the dollar amount that the insured individual has to pay before insurance will cover the claim.
A limit is the maximum dollar amount that a car insurance company will pay for a covered claim. The insured individual is responsible for paying the remaining amount once the limit has been reached.
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