Comprehensive coverage is just one type of coverage included in a “full coverage” car insurance plan. Remember that “full coverage” is not a type of real coverage, but rather a general term used to describe a policy that combines liability, comprehensive and collision coverage. However, what some consider to be full-coverage auto insurance is the combination of comprehensive insurance, collision insurance, and liability insurance. You may also hear people use the terms comprehensive insurance and full coverage insurance interchangeably, even if this isn't technically correct.
When it comes to auto insurance, it's essential to be aware of what different policies cover so that you can select the right combination of coverage for you. Full-coverage car insurance means that your policy has comprehensive and collision coverage, as well as liability coverage. With this type of policy, the insurance company will pay for the damage you cause to your car and for damage to other cars and people. Coverage for uninsured drivers and coverage for underinsured motorists with limits that match the liability coverage in your bodily injury policy are also included. Collision insurance will pay for the repair of any damage to your car caused by an accident, no matter who was at fault.
If you decide to only choose liability coverage, make sure you can buy a new vehicle out of your pocket in case it's totally damaged and uninsured. The additional amount depends on many factors, such as the year, make and model of the vehicle you want to protect. In addition to the car insurance deductible you choose, the cost of comprehensive and collision coverage will decrease if you choose a higher deductible. People who don't have a savings cushion may prefer to know that they have more coverage and to know that the insurance company will pay for any type of covered damage. Uninsured motorist coverage is used when an uninsured driver causes an accident and damages your car or injures it.
For example, if you were injured after someone crashed into you, you would file a claim with your personal injury insurance coverage. This is called personal injury protection in no-fault states, and in most other states it is called medical payment coverage. Having the whole package is called full coverage, and some people choose full-coverage car insurance to help them pay for full car repairs after any covered situation. Full coverage insurance includes comprehensive and collision coverage, which cover damage to your car. When agents, lenders, and insurers describe car insurance with full coverage, they are generally referring to liability and physical damage coverage (comprehensive and collision).
Coverage and other features vary between insurers, vary by state, and are not available in all states. Adding physical harm protection and other optional coverages will cost more than an exclusive liability policy. Nationwide, Nationwide N and Eagle and other brands that appear on this page are service marks of Nationwide Mutual Insurance Company, unless otherwise stated.
