While there is no such coverage that is actually titled "full coverage" this term usually encompasses physical damage coverage by the way of comprehensive and collision coverages. Comprehensive insurance covers damage to your automobile due to theft, vandals, fire or flood -basically incidents resulting from things other than a collision. Collision insurance covers damage to your automobile caused by when your car hits, or is hit by, another vehicle or object. Both of these coverages have a deductible associated with them. Many banks consider this "full coverage" and that is where the terminology originates. Truly, full coverage is when you have the highest available coverage that is available to you, but that is not affordable or necessary for all drivers.

The definition of No fault insurance can differ depending on the state in which you live in. A basic explanation is that No Fault insurance is intended to provide compensation for car accident victims, regardless who is at fault in the incident, by being paid basic damages by the company that insured the vehicle in which they were driving.

To find out about your state's specific no fault guidelines you can contact your DMV or insurance regulator. If you are looking to learn about your needs, read our article How Much Car Insurance Should You Buy?