So what does "full coverage" car insurance actually mean?
When financing or leasing a vehicle, your lender may use the term "full coverage." That means they require you to carry comprehensive and collision plus anything else your state mandates. Liability is a mandatory coverage in nearly every state, while comprehensive and collision (physical damage coverages) are optional. However, lenders can have their own rules about the coverages they require. Learn more about car insurance requirements by state and liability vs. full coverage car insurance.
Instead of asking, "Is my car insurance full coverage?" ask your insurance company or agent if you have the right coverages. Paying for every protection offered by your insurance company could get expensive. While your lender may consider the state-minimum liability as sufficient, that may not be enough coverage to protect you and the other drivers on your policy. You might consider customizing coverages for you, your family, and your vehicle.
Should I add optional coverages?
Even if your lender doesn't require any coverage, a new vehicle is an important investment and should be protected. Comprehensive and collision will pay for damages to your vehicle due to accidents and incidents in and out of your control. If your vehicle's value is minimal (less than $2,000), carrying physical damage coverage may not make sense. Should you decide to select liability coverage only, make sure you'll be able to purchase a new vehicle out of your pocket in the event it's totaled and uninsured.
Extra coverage like roadside assistance or rental car reimbursement is typically inexpensive and can be purchased at your discretion as well.
How much is full coverage insurance?
Adding physical damage protection and other optional coverages will cost more than a liability-only policy. How much more depends on many factors, including the year, make, and model of the vehicle you want to protect, plus the car insurance deductible you select — the cost of comprehensive and collision coverage will decrease if you choose a higher deductible.