What is “Full Coverage” Car Insurance?

Everyone has heard the term “full coverage” when talking about their auto insurance.  So what is it?

Well, full coverage means different things to different people…..  sounds strange, I know.  But full coverage car insurance is a confusing label.

Full coverage to a auto loan provider or a car salesman is a policy that not only provides the state required liability coverage, but also includes coverage for the car should it be damaged.  So that means it also contains collision coverage and comprehensive coverage for the car.  The lender wants to be sure that the car will be repaired if something unexpected should happen to the asset (the car) that they provided money to purchase.

Full coverage to an insurance agent could mean that plus much more.  Full Coverage could include every possible provided by the insurance company.  Most people do not need every coverage coverage available…… (like medical payments coverage, or rental reimbursement).

So my advise when discussing your car insurance…. don’t use the term ‘Full Coverage”…..  instead talk specifically about the coverage that you need or want……..  that way you will have what you need, and not be paying for  auto insurance coverage that you don’t want.


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