What is “Full Coverage”?

The term “Full Coverage” is a misnomer; there is no such thing.  Unfortunately, many people, even those in the insurance industry, throw the term around and it’s become accepted as a way to describe one’s auto insurance coverage.

What does “Full Coverage” mean to you?  Is it what you have to carry when you have a loan on your car?  Does it mean anyone is covered to drive your car and your policy covers you to drive anyone else’s?  Does it mean you automatically have zero-deductible glass coverage, towing, rental car coverage, and med pay?  No, it doesn’t.

If I were to describe what “Full Coverage” means to me it would be a policy that has every possible coverage at the highest possible limit with no deductibles; truly a ‘limitless’ policy.  In 20 years I’ve never seen anything that even slightly resembles such a thing.

Generally, when the term “Full Coverage” is used it refers to physical damage coverage, or Comprehensive and Collision, which is coverage to repair damage to your car in the event of a covered loss.

How well do you know what your policy covers?  Do you think you have “Full Coverage”?  It may be worth your time to sit down with your agent to find out exactly what you’re covered for and what coverages you may be lacking.

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