What is Full Coverage Auto Insurance?

If you or someone you know has ever been in an auto accident, then you probably have a good idea of how quickly the cost of damages can get out of hand, especially if there are bodily injuries involved. Accidents can happen fast, and even good drivers may find themselves at fault for a collision and financially responsible for resulting injuries and property damage.

Auto insurance, that monthly payment that you pay and grumble about (and then forget about until it’s due again), suddenly becomes your lifeline and the barrier that stands between you and serious financial troubles. Because auto insurance is so important, many drivers seek out a full coverage auto insurance policy that will protect them from any vehicle related problem that may occur. The only problem? “Full coverage” auto insurance policies don’t exist.

The Full Coverage Auto Insurance Myth

In all likelihood, the term “full coverage” as it relates to auto insurance probably originated with finance companies who needed a quick way to tell their clients how much auto insurance coverage they would need to lease or finance a vehicle. However, this is not an actual industry term; you won’t find a “full coverage” option through an auto insurance company, regardless of which one you choose.

Generally speaking, when finance companies refer to “full coverage,” they’re talking about a policy that includes liability, collision and comprehensive coverage. The term “full coverage” is also not a term you’ll hear from your insurance agent, because unlike minimum coverage (which is clearly defined), there is no set standard for what constitutes full coverage. When people talk about full coverage, they’re referring to a policy that will cover damage done to the other driver and to you, your vehicle, any towing and rental expenses, pain (medical) and suffering including lost wages (if you are at fault for the accident, of course).

Does Full Coverage Auto Insurance Cover Everything?

Adequate auto insurance coverage is important. While deductibles and coverage limits can vary widely depending on the exact policy, these three types of coverage (liability, collision, and comprehensive coverage) ensure that in the event of a collision, both your car and the car you hit can be back to pre-accident condition.

What Types of Auto Insurance Coverages Are Available?

Liability Coverage:

Helps cover the costs of any bodily injuries or property damage that results from a collision that you caused (when you are at fault). This type of insurance exclusively covers the damages done to the driver that you hit; it does not cover any repairs to your own vehicle, nor can it be used for your own medical bills or lost wages.

Collision Coverage:

As its name suggests, collision coverage will cover damages to your vehicle after an accident for which you’re at fault.

Comprehensive Coverage:

If your vehicle is damaged in an event other than an accident (like a flood, vandalism, or a wayward tree branch), your comprehensive coverage will help you pay for repairs.

Medical Payments (sometimes called Med Pay):

Med Pay is to help pay for medical bills if you and your passengers are injured in an accident no matter who is at fault.

Uninsured/Underinsured Motorist:

Did you get hit by a driver whose insurance isn’t enough to cover the damages, or worse, they don’t have any insurance coverage? Uninsured/underinsured motorist coverage will pick up where their insurance leaves off, sparing you from having to take care of all your expenses.

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What Does Full Coverage Auto Insurance Not Include?

If you buy auto insurance solely based on what’s required by the state or even by your financing or leasing company, you may find yourself seriously underinsured. Obviously, when it comes to auto insurance coverage options, liability, collision and comprehensive coverage are just the tip of the iceberg. Auto insurance companies offer a full array of additional coverage options, including:

• Medical payments coverage
• Personal injury protection coverage
• Towing and labor coverage
• Uninsured/underinsured motorist coverage
• Emergency roadside assistance
• Customized parts and equipment coverage
• Gap coverage
• Rental reimbursement coverage
• Much more

While you may need a few or even all of these additional types of coverage, they are not automatically included in “full coverage” auto insurance.​

Nevada Insurance Enrollment Is Here to Help

When it comes to auto insurance, there’s no one-size-fits-all approach. Auto insurance can be confusing, and for many people, creating a policy that includes the coverage options that address their needs, while leaving out those that they don’t, is a challenge. One of our agents can help you evaluate your driving habits and choose the coverage types and limits that are right for you.

Our agents help Nevada residents build the best policy for their lifestyle and budget. This special assistance comes at no cost to customers, making it a risk-free option for those drivers who aren’t auto insurance experts. Reach out to us today to find out more about the auto insurance coverage options available.