Understanding Auto Insurance: What’s ‘Full Coverage’ Car Insurance?

Owning a car is a big investment and you wanna protect it. Which probably has you wanting "full coverage" car insurance. But “full coverage” doesn’t actually exist. When people use that term,  they often mean a combination of coverages. Luckily, a car insurance policy offers plenty of options to help protect you and your car. Let's talk about a few. 

First up, auto liability coverage. You might want this in case you cause an accident. It’ll help pay for the other driver's medical expenses or repair bills. But keep in mind that your liability coverage won't pay for your own bills after an accident. However, medical payments coverage or personal injury protection will help pay your medical bills if you or your passengers are injured in an accident. 

Next is collision coverage auto insurance. Say your car needs repairs after a wreck…this one helps pay to repair or replace your vehicle. Transportation expense coverage helps pay for any transportation that you use while your car is being repaired due to a covered claim, including a rental car.

Another option is comprehensive coverage auto insurance, which helps pay to repair or replace your car for situations like theft or if something falls on it. 

Finally, uninsured motorist coverage auto insurance. If an uninsured driver causes an accident and they injure you or damage your car this coverage helps with your expenses. 

One last note: If you’re still paying off an auto insurance loan or if you have a lease on your vehicle, your lienholder or financing company usually requires collision and comprehensive coverage. 

Otherwise, if your vehicle’s paid off, these two coverages are typically optional on a car insurance policy. Remember, each coverage has a limit, and some coverages have a deductible. Accidents can be expensive — you’ll want coverage to protect you if one happens. That’s what auto insurance will do for you.