When shopping for auto insurance, you've probably heard the term "full coverage." It's one of the most commonly used phrases in auto insurance, but it can also be one of the most misleading.

 

Many drivers assume that having full coverage means they're protected against almost anything that could happen to their vehicle.

 

The reality is that "full coverage" isn't an official type of auto insurance policy, and it doesn't mean every possible loss is covered.

 

Understanding what's included in your policy can help you avoid costly surprises after an accident.

 

What Is Considered Full Coverage Auto Insurance?

 

When insurance companies or agents refer to full coverage, they're typically describing a policy that includes liability coverage along with comprehensive and collision coverage.

 

These coverages serve different purposes:

 

Liability Coverage

 

Liability insurance helps pay for injuries or property damage you're legally responsible for causing to others in a covered accident, subject to your policy limits.

 

In Florida, Property Damage Liability (PDL) is generally required, while Bodily Injury Liability (BI) is not universally required for all drivers.

 

Collision Coverage

 

Collision coverage helps pay to repair or replace your vehicle if it's damaged in a covered collision, regardless of who caused the accident.

 

For example, if you rear-end another vehicle or accidentally hit a pole, collision coverage may help pay for the damage to your car, minus your deductible.

 

Comprehensive Coverage

 

Comprehensive coverage helps protect your vehicle against certain types of damage that aren't caused by a collision.

 

Examples typically include:

• Theft
• Vandalism
• Fire
• Hail and hurricane-related damage
• Falling objects, such as trees and branches
• Damage from hitting an animal

 

Comprehensive and collision coverage are generally optional under Florida law, although your lender or leasing company may require them.

 

Does Full Coverage Mean Everything Is Covered?

 

No. Even a policy with comprehensive and collision coverage can have important gaps.

 

For example, a policy described as full coverage may not automatically include:

• Uninsured/Underinsured Motorist Coverage: Helps protect you against eligible bodily injury damages caused by drivers who have no insurance or insufficient bodily injury liability coverage. 
• Rental Reimbursement: May help pay for a rental vehicle while your car is being repaired following a covered loss, subject to policy terms. 
• Roadside Assistance: Can provide services such as towing, jump-starts, and assistance with flat tires. 
• Gap Insurance: May help cover the difference between your vehicle's actual cash value and the amount you owe on a loan or lease after a covered total loss, subject to policy terms. 
• Higher Liability Limits: Having comprehensive and collision coverage doesn't mean you have enough liability insurance to protect your finances after a serious accident.

 

These protections are generally selected separately, and availability varies by insurance company.

 

What Happens If Your Car Is Totaled?

 

Another common misconception is that full coverage guarantees you'll receive enough money to purchase a brand-new vehicle.

 

In most cases, when a vehicle is declared a total loss, the insurance company determines its actual cash value immediately before the loss, subject to the policy's terms and deductible.

 

Actual cash value takes factors such as age, mileage, condition, and market value into consideration.

 

If you owe more on your vehicle than it's worth, you could still be responsible for the remaining loan balance unless you have applicable gap coverage.

 

Is Full Coverage Required in Florida?

 

Florida generally requires registered passenger vehicles to carry at least:

• $10,000 in Personal Injury Protection (PIP)
• $10,000 in Property Damage Liability (PDL)

 

These minimum requirements do not include comprehensive or collision coverage.

 

However, if you're financing or leasing your vehicle, your lender will typically require comprehensive and collision coverage to protect its financial interest.

 

Once your vehicle is paid off, those coverages generally become optional, but that doesn't necessarily mean dropping them is the best decision.

 

Should You Keep Full Coverage on an Older Vehicle?

 

As a vehicle ages and decreases in value, it's worth reviewing whether maintaining comprehensive and collision coverage still makes financial sense.

 

Consider:

• Your vehicle's current market value
• The cost of comprehensive and collision coverage
• Your deductibles
• Whether you could comfortable afford to repair or replace the vehicle yourself

 

For example, if your vehicle is worth $4,000 and you carry a $1,000 collision deductible, the maximum potential collision payout for a total loss may be substantially less than the vehicle's market value after the deductible is applied.

 

That doesn't automatically mean you should remove coverage, but it's a good reason to review your options.

 

How Do You Know If You Have the Right Coverage?

 

Rather than asking whether you have full coverage, a better question is:

 

"What exactly does my auto insurance policy cover, and are my limits appropriate?"

 

Two drivers can both have policies described as full coverage but have very different levels of protection.

 

One may carry minimum liability limits and high deductibles, while another has higher liability limits, uninsured motorist coverage, rental reimbursement, and additional protections.

 

Understanding those differences is important when comparing auto insurance quotes.

 

At Arrington Insurance, we help Florida drivers compare coverage options from multiple insurance companies and understand what they're purchasing.

 

Not sure what your current auto insurance covers? Contact Arrington Insurance for a policy review. We'll help you understand your coverage and explore your options.