Simply Explaining Insurance #114- "Full Coverage"

What does the term “full coverage” mean to you? It’s a term that is now creating confusion in the auto insurance industry. It used to be the simplest way to tell someone that they had liability AND coverage for their car (comprehensive and collision).

The thing is, there are more coverages on an auto policy than just liability and comp and collision. There are more optional coverages that one can select on their policy. Coverage like towing and roadside, rental reimbursement, gap coverage, uninsured and underinsured motorists, medical and more.

The term full coverage should no longer be used. It is confusing to the consumer. Some consumers believe that full coverage means they have ALL of the optional coverages. There may be a situation where an agent says that they have full coverage but it doesn’t have towing. This would create an issue when the client needs a tow and believes they have towing coverage.

Or some clients believe that full coverage means an unlimited amount of liability coverage. There is no such thing. Liability coverage has policy limits.

As a client, it is up to you to know what coverage you have and what limits you have. I would recommend reviewing your policy with your agent to clarify what your policy actually covers.