Services
Insurance
Loans
Repairs
Advice
About

What does full coverage mean?

I have liability insurance, is that not enough? My lender says I need to add full coverage to my car. I don't know what that means.

avatar
Emily Maracle · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“Most lenders require financed vehicles to have full coverage.
This means that the vehicle has both comprehensive insurance and
collision insurance
.
While
liability car insurance
covers damages that you do to other vehicles or people, it doesn’t cover your vehicle.
Comprehensive insurance
covers your vehicle if it is damaged by something that isn’t a collision, such as:
  • theft
  • vandalism
  • contact with an animal
  • damage caused by weather
Collision insurance covers your vehicle when it is damaged by a collision.
Lenders require full coverage because comprehensive and collision insurance cover your vehicle regardless of fault.
Lenders want to ensure that their property is covered from damage. Without full coverage, it’s unlikely that financed vehicles would get repaired and lenders don’t want to take that risk.”
View full answer 
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.

Join 4M+ members in lowering their car insurance

Easiest way to compare and buy car insurance

√
No long forms
√
No spam or unwanted phone calls
√
Quotes from top insurance companies
Find insurance savings