Guide

What full coverage auto insurance really means

There is no policy called full coverage. It is shorthand for liability plus collision and comprehensive.

The pieces

Liability for injuries and damage you cause
Collision for damage to your car in a crash
Comprehensive for theft, weather, fire, glass, and animals
Often uninsured motorist and medical coverage as well

When it is required

Lenders and leasing companies require collision and comprehensive to protect their interest in the car, usually with a maximum deductible. Once the loan is paid off, the choice is yours.

Choosing deductibles

A higher deductible lowers premium but raises what you pay after a claim. Pick an amount you could cover from savings without strain.

Useful add-ons

Gap coverage for new financed or leased cars
Rental reimbursement
Roadside assistance
New car replacement, where offered

When to drop collision and comprehensive

A common rule of thumb is to compare the annual cost of collision and comprehensive with the car's value minus your deductible. If the coverage costs a large share of what you would collect after a total loss, dropping it may make sense, provided you could replace the car from savings. Keep liability and uninsured motorist coverage regardless.

Request a quote.

Frequently asked questions

When can I drop collision and comprehensive?

Once the car is paid off and its value is low compared with the annual cost of the coverage plus your deductible, dropping them may make sense.

Does full coverage include rental cars?

Not automatically. Rental reimbursement is an add-on.

What is gap insurance?

It pays the difference between what you owe on a loan or lease and the car's actual cash value if it is totaled.

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Last updated October 15, 2026 · How we research