Question

What does full coverage car insurance cover?

Full coverage insurance is an umbrella term that essentially includes liability, comprehensive, and collision coverage.

Full coverage car insurance means to cover both mandatory and liability coverage under a single policy. It ensures that you include essential coverages and offers the provision to add or cut optional coverage, such as rental reimbursement, roadside assistance, Gap insurance, etc.

Components in Full Coverage

A full coverage car insurance policy covers the following essential components:

Liability Coverage: Mandatory in most states. Covers the liabilities incurred to third parties in the event of an at-fault accident.
Collision Coverage: Mandatory under lease or loan agreement. Covers the car’s repair or reimbursement due to a head-on collision.
Comprehensive Coverage: Covers all costs to the car other than collision damage. This includes fire, theft, vandalism, tornadoes, etc.
UM / UIM: The Uninsured Motorist covers your indemnity if the at-fault party doesn’t have insurance. The underinsured motorist coverage comes when the at-fault party doesn’t have enough coverage to compensate for your damage.
Medical payments: The coverage is mandatory in some states. It covers the medical expenses of the policyholder and passengers in an auto accident, no matter whether it is an at-fault accident.

A range of optional coverages is also available, such as:

Rental reimbursement: Cover the cost of a rental car when your car is involved in a covered accident and is not in driving condition until after the repair.
Roadside assistance: This coverage helps you get your car to the nearest garage or repair shop when the car runs into a non-drivable situation.
Gap Insurance: Gap insurance serves as a bridge between your car’s actual value and the loan amount. If the car is stolen or the insurer declares it totaled, Gap insurance covers the difference between the car’s actual value and the loan amount when the actual value is lower than the loan amount.