What is full coverage car insurance?
There's no standard definition of "full coverage" car insurance. Car insurance isn't a one-size-fits-all purchase and should be customized to what you need. A few things you should consider are how much coverage you'd need to protect your property and assets. Based on your situation, your version of full coverage may differ from someone else's version of full coverage.
Our coverage calculator can help you estimate the amount of coverage you should consider carrying on your auto insurance policy.
What coverages make up an auto insurance policy?
Auto insurance policies have state-required coverages which include limits you're legally required to have. Then there are optional coverages and coverage limits. The coverages and limits of coverage vary by state. Want to know more about your state? Check out the state information pages.
Some coverage may be required by a lienholder. If your vehicle is financed or leased, your lienholder may require you to carry collision and comprehensive coverage on your policy to protect their interest.
The most common state-required coverages are liability coverages (bodily injury and property damage). These coverages help provide protection if you're at fault in an accident and cause injury or damage to another person or their property.
Optional coverages include rental reimbursement to help cover rental car costs while your car is being repaired as a result of a covered claim. Emergency road service can help provide roadside assistance for tire changes, jump starts, or a tow if necessary.
Check out the car insurance coverage information page to learn more about these and other available coverages.
How can I customize my car insurance policy?
Even though you may be required to carry certain coverages and limits, you can still customize your policy. You may decide you'd like to have more protection than the state mandates and even add an umbrella insurance policy.
Generally, with comprehensive and collision coverages, you can select the amount of your deductible. In most cases the deductible is the amount you will be responsible for in the event of a covered claim. Typically, a higher deductible will lower your insurance costs.
How much does "full coverage" car insurance cost?
As we mentioned before, there is no standard definition of "full coverage" car insurance. You will customize your policy to meet your state's requirements and your individual situation.
The types of coverages, limits and deductibles you choose affect the amount of your car insurance premium. If you are comparing car insurance rates, it is important to keep this in mind.
If you decide to carry higher limits than required by the state, the cost of your policy will probably be more than someone with the minimum. The cost of coverage can vary based on the deductibles you decide to carry. If you carry a higher deductible, the cost for those coverages is normally lower than if you carry a smaller deductible.
The above is meant as general information and as general policy descriptions to help you understand the different types of coverages. These descriptions do not refer to any specific contract of insurance and they do not modify any definitions, exclusions or any other provision expressly stated in any contracts of insurance. We encourage you to speak to your insurance representative and to read your policy contract to fully understand your coverages.