There truly is not such coverage that is "full coverage" with auto insurance because it would be impossible to buy a policy where you are fully covered against every exposure. What you can do is try to protect yourself from the most common exposures.

Many people that buy what they feel is full coverage and then need to make a claim are upset because they are not really fully covered. What most insurance agents and insureds think of as full coverage simply means the person has at least the state minimum car insurance coverages (which typically is Liability coverages but may also include PIP and/or UM in some states) and coverage for the vehicle with Physical Damage coverages of Collision and Comprehensive.

If an insurance company allowed you to buy all the coverages you have read about you would probably not need them all and end up paying a high premium for duplicate coverages or unneeded coverages. For example if you have PIP and good health insurance that would pay for medical expenses resulting from a car accident you may not need Medical Payments coverage. Or if you belong to a car club, such as AAA, you would not need Towing and Labor as part of your car insurance policy.

If you have already paid off your car or are not upside down on your car loan, meaning you owe more than the worth of the car, than you would not need Gap insurance. And if you do not own assets such as a house you wouldn't normally need an Umbrella policy. So while we always instruct customers to buy as much insurance as they can afford, we also want you to know what your needs are and not end up buying coverages that you would not be able to use or would be a duplicate coverage for your specific situation.

Reading our article titled, How Much Car Insurance Should You Buy? can help you determine the right coverages for your needs. Also use our insurance coverage calculator to decide on what coverages you do and do not need.

Since there is really no such thing as "full coverage" no insurance company should advertise full coverage. Agents may use it as a term to reference Physical Damage coverage along with the state required coverage but this should be told to the policyholder so they know what they are and are not covered for.

Reading the definitions of the various types of coverages out there is wise and then the next step is to determine which ones you do need and which ones you do not. You then can shop for the right coverages for your particular situation.

The basics of what in general people refer to as full coverage as we mentioned earlier is at least your state's minimum car insurance coverages, though you may want to up the limits to protect yourself better, and then Physical Damage coverages. Physical Damage coverage consists of Collision and Comprehensive coverage. Collision insurance covers damage to your automobile caused by collision with another object or by upset. Comprehensive insurance covers damage to your automobile from vandalism, theft or glass breakage and "other than collision" incidents such as being hit by an animal, such as a deer.

If lien holders say they require full coverage they are referring to again your state's basic auto insurance coverages and Physical Damage coverage. Collision and Comprehensive coverages are important if you are financing or leasing your vehicle since the lien holder wants their asset, the car, protected with these coverages so that you have the means, through making an insurance claim, to fix the car if it is in an accident.

When shopping for insurance you will see that full coverage is a very subjective term that can have different meanings to different individuals, companies or additional interests in an insurance contract. "Full coverage" does not mean every possible injury, liability exposure or part on your vehicle is covered or that you get all the coverages you have read about that are available for purchase by a policyholder.

So when buying "full coverage" you really are buying more than just a basic car insurance policy. It is a policy that will also include Collision and Comprehensive normally and could include PIP, MedPay, Uninsured Motorist (UM), etc but it is up to you as the policyholder to say what your full coverage policy will include or exclude. You won't get all the coverages you have read about mostly because not every single type of coverage would be needed on one policy. Use our insurance calculator and speak to our agents at 1-800-964-4849 if you want to discuss your needs and figure out the right "full coverage" policy for your needs and budget.

You can also start shopping for your auto insurance needs by clicking here and starting a quote.