Do You Need Full Coverage Insurance?

Knowing what car insurance coverages are right for you can be a challenge. And you might be wondering, especially if you just purchased or leased a new car if you need full coverage insurance for your vehicle.

In this guide, you’ll learn what full coverage car insurance actually means, common misunderstandings around the term, and the pros and cons of carrying additional coverage.

What Is Full Coverage Car Insurance?

“Full coverage car insurance” is a phrase that some drivers, dealerships, or auto loan lenders might use to describe having a policy that meets or exceeds:

Your state’s minimum car insurance requirements
Your lender’s or car lease’s minimum car insurance requirements
Your unique financial needs

But here’s the thing: “full coverage car insurance” is a myth. (Yep, it’s true! There's no type of policy that offers 100% coverage for every situation.)

Most of the time when people use “full coverage” terminology, they’re most likely referring to a car insurance policy that has both liability coverages and comprehensive and collision coverages for the vehicle.

Each car insurance policy is extremely personalized and unique, so when someone wants to know what full coverage is, the answer will be different for everyone.

What’s in a Full Coverage Policy?

When people mention “full coverage,” they usually mean that your policy includes all the required coverages for your state, plus comprehensive and collision coverage.

Comprehensive and collision coverage are often optional, but they can help pay for repairing or replacing your vehicle in a covered incident—which is why some people refer to them as “full” coverage.

However, both comprehensive and collision have rules, regulations, and limits that exclude certain events from being covered.

Ultimately, it’s important to remember there’s no official “full coverage” car insurance policy you can purchase, no matter what insurance company you choose. It’s best to talk directly with an experienced insurance agent or get a customized insurance quote to understand what car insurance coverage is right for you.

Essential insurance coverages for the best protection

Let’s take a closer look at important coverages you should consider when purchasing insurance.

Liability Coverage

Liability car insurance covers other people (and their property) if you’re at fault in an accident. It’s made up of two parts: bodily injury liability and property damage liability coverage.

Liability coverage is required in most states, and your state sets the minimum limits that each driver must carry on their policy. But the required state minimum coverage doesn’t always provide the best financial protection because, well, it’s the minimum.

To get a better understanding of different types of insurance coverages, check out our car insurance coverage wizard.

Collision Coverage

Collision coverage helps pay for the repair or replacement of your vehicle if it collides with another vehicle or object. When you add this coverage to your car insurance policy, you’ll also select a deductible, (the amount you agree to pay out-of-pocket when you file a claim for a covered accident).

Collision coverage isn’t typically required (unlike liability coverage) unless you have a lease or loan on your vehicle.

Comprehensive Coverage

Comprehensive coverage helps pay for repairs or the replacement of your car if it’s damaged by a covered event, such as theft, a weather event, or a civil disturbance. In fact, comprehensive is the coverage that most often comes into play for weather-related car insurance claims. And while collision covers you if your vehicle is damaged by striking another vehicle or property, comprehensive will provide coverage in the event that you damage your vehicle via contact with an animal or bird.

You’ll also select a deductible for comprehensive coverage. Similar to collision, comprehensive coverage is not typically required, but you’ll often need to have it if you have a car loan or lease.

Personal Injury Protection (PIP) Coverage

Personal Injury Protection, often referred to as PIP, is additional coverage that can help pay for your medical bills, lost wages, and other expenses if you’re in a car accident, regardless of who is at fault in the incident.

Some states require PIP while others don’t. Each state has different rules around car insurance, so depending on where you live in the U.S., PIP may not be an available coverage or there could be many PIP options to choose from.

Medical Expenses Coverage

Medical Expenses coverage, sometimes called MedPay, can help cover you or your passenger’s medical bills, no matter who caused the accident. Medical Expenses coverage isn’t required in every state, but depending on where you live, it may be necessary.

Optional car insurance coverages that aren’t included in most policies

Drivers should consider carrying comprehensive and collision coverage, in addition to liability coverages, to ensure they are adequately protected. In addition to these coverages, you can select optional, add-on coverages for an added boost of financial protection and convenience,

Roadside Assistance

Roadside Assistance coverage is there for you when you need a little extra help—like when your car has a flat tire, experiences a stalled battery, or runs out of gas. This coverage can help pay for qualified tow service to a shop or fixes for minor covered emergencies, like a lock-out. (Don’t worry–it happens to the best of us.)

With Roadside Assistance coverage, you can get help whenever you need it with just a few taps in our award-winning app. It’s super-easy to use, and you’ll get real-time notifications that a service provider is on the way.

Glass Coverage

Usually, glass protection is included in comprehensive and collision coverage, and a separate add-on coverage isn’t needed. But depending on your insurance company and policy specifics, additional glass coverage options may be available as an add-on.

For Clearcover customers, glass coverage is included under collision or comprehensive coverages, depending on the incident. If the glass is repairable, then no deductible applies. But if the glass needs to be replaced, a deductible will apply.

Alternate Transportation Coverage

With Alternate Transportation coverage, you’ll have options for how to get around when your vehicle is undrivable due to a covered incident. For example, if your car is in the repair shop due to an accident that’s covered in your insurance policy, this coverage can help pay for a rental car or rideshare.

With Clearcover, you can choose how to use your Alternate Transportation coverage, whether that’s for a rental, carpool, rideshare (including easy-to-use Uber credits!), or public transportation fare.

The Cost of Full Coverage Insurance

Full coverage isn’t a specific type of car insurance policy, and what one driver considers “full coverage” may not seem like nearly enough basic coverage to another. Most of the time, when someone mentions having “full coverage car insurance,” they usually mean a policy that includes at least liability, comprehensive, and collision coverages.

So what goes into determining your costs for car insurance coverage?

A lot goes into calculating the premium for your unique insurance policy. And as the policy owner, you’ll also make key selections for your policy that influence your costs.

Let’s take a closer look at a few things that can come into play when calculating insurance costs.

Important note: These variables can vary depending on your state’s car insurance regulations and requirements.

Some factors your insurer might use to determine costs:

Your past driving record
Car insurance history
Your vehicle
How much you drive

Selections you make for your policy that determine costs:

Your coverage choices
Your deductible amount
Your coverage limits

Your insurance company uses these factors—plus some advanced math—to determine the premium you’ll pay for the coverages you need. Learn more about how car insurance pricing works.

With all this in mind, you can see why it’s best to get a quote to get a better idea of what you’d pay for what you consider as “full coverage.”

In fact, it’s nearly impossible to compare apples to apples without gathering a few quotes from insurance companies. So if you’re thinking about switching car insurance companies, the smartest place to start is by gathering several quotes from different insurers.

Is Full Coverage Right for You?

You should carry at least your state’s minimum required liability coverages as well as consider carrying comprehensive and collision coverages, depending on your own personal situation. It’s important to evaluate what level of coverage is right for your personal situation because the less car insurance coverage you have, the more financial risk you’re agreeing to take on if you’re in an accident.

Having more insurance coverage than the bare minimum could protect you financially in the long run—especially if you experience a high-cost car accident that’s covered by your policy.

But that doesn’t necessarily mean you need to overpay for coverage to protect yourself from loss. (In fact, Clearcover wants to help you get the right car insurance coverage at an incredible price.)

Pros of carrying additional coverage:

You’re taking on less financial risk.
You’ll have increased peace of mind knowing your vehicle is covered during storms with comprehensive coverage.
You can get help from your insurance company to repair or replace your vehicle in a variety of covered situations.

Cons of carrying additional coverage:

It’s more expensive than the basic state-minimum car insurance coverage.
You still may have to pay a small amount out-of-pocket in some circumstances via your deductible.
It’s difficult to know exactly how much you need. (But Clearcover can help!)

Whatever Full Coverage Means to You, Clearcover Can Help

Making decisions about your car insurance coverage doesn’t have to be difficult or confusing. Clearcover is car insurance that’s hassle-free and easy to understand.

With Clearcover, you can get the car insurance coverages you need—and at an affordable price.

Find out what coverages are right for you, and personalize your car insurance policy to fit your unique needs. Get your quote today.