“Full coverage” is one of the most common phrases people use when shopping auto insurance—but it can also be one of the most misunderstood.
The quick answer is that “full coverage” isn’t an official insurance term. Instead, it’s a phrase people often use to describe a combination of auto insurance coverages that help protect both you and your vehicle.
Here’s what you need to know.
What Does “Full Coverage” Usually Mean?
While there isn’t a standard definition, “full coverage” typically refers to a policy that includes:
- Liability Coverage
- Collision Coverage
- Comprehensive Coverage
Together, these coverages provide protection in many common situations, but they don’t cover every possible loss.
What Does Each Coverage Do?
Liability Coverage
Liability coverage helps pay for injuries or property damage you cause to someone else if you’re at fault in an accident.
Kentucky requires drivers to carry minimum liability limits, but many people choose higher limits for added financial protection.
Collison Coverage
Collision coverage helps pay to repair or replace your vehicle if it’s damaged in a collision, regardless of who is at fault.
Whether you collide with another vehicle, a guardrail, or another object, collision coverage may help cover the cost of repairs after you pay your deductible.
Comprehensive Coverage
Comprehensive coverage helps protect your vehicle from damage caused by something other than a collision.
Examples may include:
- Hail or storm damage
- Fire
- Theft
- Vandalism
- Falling objects
- Hitting a deer or other animal
Like collision coverage, comprehensive coverage is typically subject to your deductible.
Does “Full Coverage” Cover Everything?
No.
Despite the name, “full coverage” does not mean you’re covered for every situation. Every auto insurance policy has specific coverages, limits, deductibles, and exclusions that determine what is and isn’t covered.
That’s why it’s important to understand the coverages included in your policy instead of simply asking for “full coverage.”
How Do I Know What Coverage Is Right For Me?
The right auto insurance coverage depends on several factors, including your vehicle, your budget, and the amount of financial protection you’re looking for.
An independent insurance agent can help you review your options, explain your coverages, and make sure your policy fits your needs before you ever have to file a claim.
We’re Here To Help
Understanding your auto insurance shouldn’t be confusing. Whether you’re purchasing a new policy or reviewing your current coverage, we’re here to answer your questions and help you understand exactly what your policy includes.
If you’d like to review your auto insurance coverage, give Ingram Insurance a call at (270) 842-3322. We’d be happy to help.
