Full coverage
An informal auto-insurance label, usually meaning liability coverage plus collision and comprehensive coverage. Together they can pay for injury or damage you cause to others, damage to your own car after a crash, and covered losses like theft, fire, weather or vandalism. It is not a standardized policy and does not mean everything is covered.
Also called: full coverage car insurance, full coverage auto insurance, comp and collision, comprehensive and collision, FC, full cov
When a lender, a dealer or a quote says "full coverage," the words usually point to three coverages bought together: liability, collision and comprehensive. Liability pays for injury or damage you cause to other people, while collision and comprehensive pay for damage to your own vehicle. The label sets no limits, deductibles or extras, and there is no such thing as a "full coverage" policy type, according to the NAIC (opens in a new tab). Your Declarations page shows which coverages you selected.
How the three coverages pay, with real numbers
Each coverage answers a different loss. Take a Connecticut policy with $25,000 per person and $50,000 per accident for bodily injury, $25,000 per accident for property damage, and a $500 deductible on collision and comprehensive. The liability figures are the Connecticut Insurance Department (opens in a new tab) minimums; the $500 deductible is an illustrative choice, one of the amounts the New York Department of Financial Services (opens in a new tab) lists as commonly offered.
Hover or tap a row to highlight it.
| Claim | Amount | Insurer pays | You pay |
|---|---|---|---|
| Collision repair | $8,000 estimate | $7,500 | $500 |
| Total loss | $20,000 actual cash value | $19,500 | $500, plus any loan balance above $20,000 |
| Liability, other driver's car | $18,000 of damage | $18,000 | $0 for covered damage |
The total-loss payment is still subject to the policy's valuation, exclusions and settlement terms, and a loan balance above the car's covered value stays with you unless gap coverage applies. In the liability claim, covered damage above the $25,000 limit could leave you personally responsible for the excess.
Options that change what "full coverage" pays
- Liability limits. Higher limits protect more of your assets and generally raise the premium.
- Deductibles. The $100, $200, $250, $500 and $1,000 options listed by New York DFS (opens in a new tab) show the tradeoff: a higher deductible generally lowers the premium and raises what you pay after a covered loss.
- Comprehensive, also called other-than-collision. It pays for covered damage from theft, fire, flood, hail, windstorm, vandalism, falling objects, animal contact and glass breakage.
- Uninsured and underinsured motorist coverage, personal injury protection or medical payments. These cover injuries, and the mix depends on the state.
- Rental reimbursement and towing. Each pays only when selected.
- Gap coverage. It pays some or all of the difference between the car's covered value and what you owe, according to the California Department of Insurance (opens in a new tab).
- Custom parts or equipment. Standard forms may limit or exclude these unless an endorsement applies.
The guide to comprehensive vs collision insurance shows how the two physical damage coverages differ, and the average cost of car insurance in Connecticut gives a price reference.
Where you meet the term
The phrase turns up in personal auto quotes, dealership paperwork, lender requirements, renewal notices and claim explanations. It is not a defined package in homeowners, renters, life, health, pet or business policies. The Declarations page names the vehicle, policy term, coverages, limits, deductibles and premium; endorsements add or change coverage; and a claim letter applies the policy to one loss. A lender's request for collision and comprehensive does not create coverage that is missing from the policy, according to the NAIC (opens in a new tab).
What Connecticut and New York law require
Neither state defines a "full coverage" package; each requires certain coverages and leaves the physical damage coverages optional. In Connecticut, Conn. Gen. Stat. § 38a-334 (opens in a new tab) makes bodily injury liability, property damage liability and uninsured motorist coverage mandatory, and Conn. Gen. Stat. § 38a-336 (opens in a new tab) covers the uninsured and underinsured motorist rules. Uninsured and underinsured motorist minimums are $25,000 per person and $50,000 per accident. Collision and comprehensive are not required by law in Connecticut, though a lender or leasing company may require them, according to the Connecticut Insurance Department (opens in a new tab).
In New York, the minimums are $25,000 per person and $50,000 per accident for bodily injury, $10,000 for property damage and $50,000 for no-fault benefits, according to the Department of Financial Services (opens in a new tab). No-fault benefits rest on N.Y. Insurance Law § 5103 (opens in a new tab), and collision and comprehensive claims follow the settlement standards in 11 NYCRR § 216.7 (opens in a new tab).
Questions to ask an agent or insurer
- "Which exact coverages do you mean by 'full coverage,' and what are the limits for each?" The answer shows whether uninsured motorist, injury protection, rental reimbursement and towing are included.
- "What are the collision and comprehensive deductibles, and do they apply separately?" A deductible is your share of each covered loss.
- "If the car is totaled, is the settlement based on actual cash value, an agreed amount or replacement cost?" A total loss may settle below the loan or lease balance, according to the NAIC consumer auto guide (opens in a new tab).
- "Does the policy include gap coverage, rental reimbursement, towing, custom equipment and coverage for personal items?" The words "full coverage" do not establish any of these.
- "Are there exclusions for business use, delivery, rideshare or unlisted drivers?" A loss can fall outside coverage when the use or driver is excluded.
Frequently asked questions
What full coverage pays after a loss depends on the loan, the coverages named and the lender's contract.
Does full coverage pay off my car loan after a total loss?
Not automatically. Auto insurance does not pay the difference between a vehicle's market value and the amount owed on a loan, according to the NAIC (opens in a new tab), so you may still owe the lender after the insurer settles at actual cash value.
Is comprehensive coverage the same as full coverage?
No. Comprehensive is one physical damage coverage for covered losses that are not collisions, per the Connecticut Insurance Department's common terms (opens in a new tab). A crash claim goes to collision, not comprehensive.
Can I drop collision and comprehensive on a financed car?
State law does not require them, but your loan or lease may. If you drop them, the lender can buy force-placed insurance, treat it as a default, or leave you without the protection you wanted, per the NAIC consumer auto guide (opens in a new tab). Ask the lender what it requires first.