As May brings warmer weather and the promise of summer road trips, many drivers take a moment to review their auto insurance policies before hitting the open road. When buying or renewing a policy, the most common request insurance brokers hear is simple: “I just want full coverage.”
It sounds like the ultimate safety net, implying that absolutely everything is taken care of in the event of an accident. But here is the industry’s best kept secret: “Full coverage” is not an actual type of insurance.
In reality, it is just an industry buzzword. Relying on this vague term can leave you with a false sense of security and dangerous gaps in your protection. Here is a breakdown of what that term usually means, what it leaves out, and how to ensure you are actually protected this summer.
What Does “Full Coverage” Usually Mean?
When you ask an agent for full coverage, they are typically bundling three specific types of insurance together:
- Liability Coverage: This is required by law in almost every state. If you cause an accident, liability pays for the other driver’s medical bills and property damage. It does not pay a single dime toward your own injuries or vehicle repairs.
- Collision Coverage: This pays to repair or replace your vehicle if you collide with another car or a stationary object, regardless of who is at fault.
- Comprehensive Coverage: This protects your vehicle from non-driving-related disasters. If a summer hail storm wrecks your roof, a tree branch falls on your hood, or your car is stolen, comprehensive coverage steps in.
While having Liability, Collision, and Comprehensive is an excellent foundation, it is far from “full.”
The Dangerous Gaps You Might Be Missing
If you assume your full coverage policy has you completely protected, you might be in for a harsh financial shock if you experience any of the following scenarios.
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The Uninsured Driver (UM/UIM Coverage)
What happens if you are hit by a driver who does not have insurance, or whose stateminimum limits are too low to cover your medical bills? Your standard liability will not help you. Unless you specifically added Uninsured and Underinsured Motorist (UM/UIM) coverage, you could be left paying for your own medical expenses out of pocket.
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The Totaled Financed Car (GAP Insurance)
If your new car is totaled in an accident, your collision coverage will only pay you the Actual Cash Value (ACV) of the vehicle. Cars depreciate rapidly. If you owe $30,000 on your autoloan but the depreciated value of the car is only $22,000, you are legally responsible for paying that $8,000 difference to the bank. Guaranteed Asset Protection (GAP) insurance is an add-on that covers this exact shortfall, yet it is rarely included in a standard full coverage quote.
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The Week in the Shop (Rental Reimbursement)
If your car needs to sit in the body shop for three weeks after an accident, how are you getting to work? A standard policy does not automatically pay for a rental car. You must specifically request Rental Reimbursement coverage to avoid paying daily rental fees out of your own wallet.
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The Highway Breakdown (Roadside Assistance)
A blown tire or a dead battery halfway to your summer vacation destination is a headache. Assuming your policy includes free towing is a mistake. Roadsideassistance is an optional endorsement that must be manually added to your policy.
Stop Asking for Full Coverage
The cheapest car insurance policy is rarely the best deal, and asking for a generic bundle can leave your family financially exposed. Instead of asking for full coverage, ask for the right coverage.
Before you pack the car for your next road trip, let the experts do the heavy lifting. Reach out to an independent broker at Inszone Insurance Services. We can review your current declaration page, identify any hidden gaps, and build a customized auto policy that truly protects your assets from every angle.