“Full coverage” car insurance refers to a combination of coverages that provide more benefits for drivers than just the required minimum insurance. “Full coverage” is not a single insurance coverage. It’s a common phrase that refers to a bundle of coverages a driver may choose to offset future financial losses caused by a covered accident or event.
Full coverage is typically made up of these three parts:
- Liability Insurance
- Collision coverage
- Comprehensive coverage
Some drivers may choose to add even more coverages, such as roadside assistance or rental reimbursement. Let’s dive into each of these coverages in detail so that you can make an informed decision when buying a full coverage policy.
At Infinity Insurance Agency, Inc. (IIA), we specialize in helping drivers find customized auto insurance options at competitive rates. To start your journey towards full coverage, get a free quote with us.
What does full coverage insurance include?
A typical full coverage auto insurance bundle includes these three parts:
1. Liability insurance
Liability insurance is required in almost all states. It may help pay for another person’s injuries or property damage when you’re the driver at fault. For example, if you change lanes and crash into a vehicle after failing to notice it, liability insurance can help pay for the other driver’s damages up to a certain limit.
The minimum limits depend on which state you reside in. Drivers can opt for higher limits when they build their policy. While higher limits may lead to a higher insurance premium, they may also mean less financial loss after you experience a covered accident.
Some states, like Illinois, require drivers to get uninsured motorist coverage. This coverage can help pay for the costs of bodily injuries you experience when you’re in a covered accident with an at-fault driver who doesn’t have insurance.
Other states, like Florida, require personal injury protection (PIP). PIP may cover the costs of medical expenses if you or your passengers are injured in a traffic accident. It may also help with lost wages, rehabilitation costs, and some essential services used.
2. Collision coverage
As its name implies, collision coverage may help pay for damages to your vehicle caused by a crash, regardless of who is the driver at fault. For example, if your car gets dented in a covered accident, collision coverage can help pay for the repairs.
Collision coverage has a deductible. This is the amount you pay out of pocket before your policy kicks in. For example, if you choose a deductible of $500 and you get into a covered accident, you will pay $500 before your policy pays the rest of your vehicle repairs.
3. Comprehensive coverage
Comprehensive coverage helps pay for damages to your car not related to traffic accidents. It may cover events such as:
- Theft and vandalism
- Extreme weather events such as floods or hurricanes
- Animals damaging your car
- Falling objects such as tree branches
- Fires
Comprehensive coverage also has a deductible, which the driver chooses.
Which auto insurance coverage is optional?
Here are some additional coverages you may opt for:
- Personal injury protection (PIP): Unless your state requires it, this is an optional coverage that may help pay for medical expenses for you and your passengers
- Medical payments coverage (MedPay): Similar to PIP, except it doesn’t cover lost wages or rehab costs.
- Uninsured/underinsured motorist coverage (UM/UIM): This coverage may help pay for your damages after an accident with an at-fault driver who has no insurance or not enough insurance. It’s required in some states and optional in others.
- Rental reimbursement coverage: This helps pay for a rental vehicle while your car is undergoing repairs after a covered accident.
- Roadside assistance coverage: This provides services such as roadside towing, lockout assistance, emergency fuel delivery, etc.
Does full coverage cover other drivers?
Your policy may cover a friend you’ve lent your car to on occasion, as most insurance policies are attached to the vehicle and not the owner. However, if another driver lives with you and they borrow your car, your policy may not cover them. It’s important to list anyone who shares your residence and your vehicle on your policy, whether it’s a spouse, your child, or your roommate.
Whether someone is covered also depends on your state’s laws and requirements, according to the Insurance Information Institute. Who is covered will also vary based on your carrier. Check with your insurance agent before lending your vehicle to other drivers.
What is not included in full coverage?
Some events are not included in most full coverage policies. These include:
- Mechanical breakdowns: If your engine fails or you need an oil change, your policy won’t cover the costs as these are considered routine vehicle wear and tear.
- Tire replacement: Unless caused by an accident, a tire blowout is also usually considered regular wear and tear.
- Custom upgrades and aftermarket parts: If you’ve upgraded your vehicle with custom parts or accessories, it’s possible your policy won’t cover them unless you buy a custom equipment add-on.
- Personal belongings: Car insurance won’t cover personal items lost due to vehicle theft or damage.
- Driving for rideshare or delivery apps: Unless you have a commercial auto insurance policy that is tailored for these services, your policy likely won’t cover you.
- Coverage in other countries: While many car insurance policies cover short trips to Canada, your policy most likely won’t cover you while driving abroad.
- Intentional damage or illegal activity: If you engage in reckless or unlawful behavior with your car, your insurance policy most likely won’t cover the damages.
- Using your vehicle for business purposes: If you use your car as part of your business (like having a food truck or driving to contracting sites), you most likely need a commercial auto insurance policy.
What are the benefits of full coverage insurance?
Full coverage can offer a wider financial safety net when you experience a covered accident. Here are some of its benefits:
- Financial protection: Full coverage helps reduce hefty out-of-pocket expenses for repairs or replacements after a covered accident. It can also help pay for damage from theft or extreme weather.
- Enhanced coverage: While liability insurance can cover damages to others, having “full coverage” extends protection to your vehicle.
- Flexibility: Full coverage insurance policies can be customized to fit your specific needs. There are also various payment plans available.
- Meets different requirements: Some lenders or leasing companies may require you to get a full coverage policy when you finance a vehicle.
- Optional add-ons: Drivers can opt for rental reimbursement and roadside assistance.
Full coverage may potentially save you thousands after just one major accident or loss. Contact IIA to discover various full coverage car insurance options.
How much does full coverage car insurance cost?
The average yearly cost of full coverage car insurance is $2,290, according to NerdWallet. However, how much you’ll pay depends on various factors, including:
- Your location: Areas with busier traffic and higher accident rates often have higher car insurance premiums.
- Your vehicle type: Luxury or customized vehicles often cost more to insure.
- Your driving history: Experienced drivers and those with clean driving records tend to pay less for car insurance than newer drivers and those with less-than-perfect records.
- Coverage limits: The limit, which you choose, is how much your policy will cover. While higher limits often mean more expensive premiums, they also offer more financial protection in case of a covered event.
- Insurance company: Different insurance companies have different package prices.
- Credit score: In some states, insurance companies may use a credit-based insurance score to determine rates. A lower score may mean higher premiums.
Choosing a higher deductible can lower your monthly premium. Just make sure you can pay it out of pocket, as your policy kicks in after this payment.
What’s the difference between full coverage and minimum insurance?
Minimum liability insurance only works to cover the damage you cause others. Full coverage can help cover the repair or replacement costs of your own vehicle after a covered collision or covered event.
Who should consider full coverage insurance?
Full coverage may be helpful for:
- Drivers with new, luxury, or expensive cars
- Those in high-risk areas: Areas with higher traffic rates, theft risk, or prone to extreme weather events
- Leased or financed vehicles (may be required)
- If you believe you can benefit from a policy that may help pay for damages, costs, or repairs after an accident, so that you don’t have to deal with high out-of-pocket costs.
Common misconceptions about full coverage insurance
Misconception: Full coverage covers every accident or event.
Truth: It covers more than basic liability, but not every possible incident. It doesn’t include mechanical breakdowns, regular wear and tear, or aftermarket parts unless stated.
Misconception: If I have full coverage, I won’t pay anything after an accident.
Truth: You’ll pay your deductible. If the covered event’s costs go beyond your limits, you will also pay those costs.
Misconception: Full coverage is required by law.
Truth: Most states require minimum liability insurance, but not additional coverages like collision or comprehensive.
Can non-standard drivers get full coverage insurance?
Yes, if you’re considered a non-standard or high-risk driver, IIA offers a variety of coverage options, including liability, collision, and comprehensive coverage.
Who’s considered non-standard?
Non-standard or high-risk drivers include:
- New drivers or those with less-than-perfect driving histories
- Drivers with lapses in coverage
- Foreign license holders
- Drivers required to hold an SR-22 certification
- Those without an established credit history
Insurance options for non-standard drivers
At IIA, we offer various insurance options for non-standard drivers:
- Liability-only policies: Meets legal requirements and may lead to lower premiums
- Full coverage for financed cars: Often required by lenders
- Flexible payment plans: For customers who can’t pay in full upfront
- SR-22 filings available: For those who need a certificate of financial responsibility
- Spanish-bilingual agents: They can answer your questions about car insurance requirements
Infinity Insurance Agency, Inc. (IIA) accepts foreign driver’s licenses and often works with customers who’ve been denied elsewhere.
How to lower your premium as a non-standard driver
To lower your car insurance premiums going forward, non-standard drivers can:
- Avoid lapses in coverage
- Work to maintain a clean driving record
- Ask about available discounts, such as bundling multiple vehicles in one policy, being a good student, switching providers, or paying your premiums up front.
- Shop around since different carriers offer different rates
Choosing between full coverage and liability-only coverage
Now that you understand what full coverage car insurance entails, you may be wondering if it’s the right choice for you. Before making your decision, consider whether you could afford to repair or replace your car out of pocket after an accident. If your vehicle is leased or financed, full coverage might also be necessary.
Additionally, if you live in an area with a higher risk of accidents, theft, or storms, full coverage might help pay for costs related to these events. You could also benefit from choosing added benefits like roadside assistance or rental car insurance.
Why choose Infinity Insurance Agency, Inc. (IIA) for full coverage insurance?
IIA helps drivers compare full coverage policies from various providers, so you can make an informed choice. If you are considered a non-standard driver, have a foreign license, a less-than-perfect driving history, or no prior coverage, we’re here to help. IIA offers:
- Assistance from Spanish-bilingual agents
- Experience helping drivers get insured fast, even after a lapse in coverage
- Options for non-standard drivers
- Quotes from multiple carriers, online or over the phone
If you’d like to find budget-friendly full coverage options from multiple carriers, call IIA at 1-855-478-3705 to speak with an agent or get a free car insurance quote online.
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