Skip to main content

What is “full coverage?”

By July 9, 2018March 5th, 2024Insurance

In our agency we may find this as the most misunderstood term used commonly. Drivers are required to carry liability insurance (or post a state bond) to protect themselves against financial loss that they may cause to the “other party.” For example if you are in an accident and it is your fault, and you do damage to someone else’s property or bodily injury, you are “liable” for those damages.

But what about your vehicle? If a vehicle is financed, the bank will often require the owner to maintain “full coverage” but what coverages does that actually mean? It often is not what the vehicle owner thinks. The bank requires comprehensive and collision coverages only. That means what the bank is saying is that if someone is in an accident in the vehicle those are the two coverages that will repair or replace the vehicle or their investment.

That does not include other coverages such as rental car coverage, medical payments, uninsured, underinsured, roadside assistance or any other coverages. It always helps to do a complete review to make sure you understand what is and is not covered by your auto policy! To learn more about Full Coverage, Auto Policies, or to simply ask us questions, click here.