What exactly is full coverage insurance?

Question

What exactly is full coverage insurance?

Answer 1

There is really no such thing as 'full coverage". No insurance company should advertise full coverage. Agents may use it as a term to reference physical damage coverage along with the state required coverage.

Most people use this term to refer to physical damage coverage. Physical damage coverage consists of collision and comprehensive coverage. Generally, collision insurance covers damage to your automobile caused by collision with another object or by upset. Comprehensive insurance covers damage to your automobile from vandalism, theft or glass breakage. Most lienholders require physical damage coverage if you are financing or leasing your vehicle.

You may be required to carry a specific amount of liability insurance if you are leasing the vehicle rather than financing it. Liability coverage consists of bodily injury coverage and property damage coverage. Bodily Injury Liability covers other people's bodily injuries or death for which you are responsible. Property Damage Liability covers you if your car damages someone else's property.