What’s full coverage car insurance?
Full coverage means different things to different people. It's a common term banks or lenders use when referring to the coverage they require for USAA auto insurance.
When lenders say full coverage, they usually mean having an auto policy with collision, comprehensive and the minimum liability coverage amount required by your state.
Full coverage isn't an actual policy or coverage option though, and no insurance company has a policy that covers every situation.
How much coverage is required?
You’ll need a minimum amount of liability coverage in most states. If you’re financing your car, your lender will likely require collision and comprehensive coverage. They may also set a limit on your deductible amount.
Keep in mind that you should have enough coverage to help protect the following:
- You and your finances
- Other drivers in your household
- Your passengers
- Your vehicles
How much is car insurance?
It depends on things like your driving record, location, deductible, the characteristics of your car and how much coverage you get.
Even if you don’t have a lease or loan, think about how much you’d have to pay out of pocket to fix your car.
Full coverage car insurance FAQ
The words "full" and "comprehensive" may sound alike, but they mean different things in the world of car insurance. When you customize a policy, you won't find an option to get full coverage.
Comprehensive coverage helps pay for incidents that are often out of your control. Think damage from severe weather, theft, vandalism, fire or hitting an animal. After you pay your deductible, your comprehensive coverage can help pay to repair or replace your car in a covered claim.
If you get both comprehensive and collision insurance along with liability, it satisfies most lenders' requirements for coverage.
Any auto insurance deductible is an out-of-pocket cost you pay when your coverage kicks in. Most policies allow you to choose different deductibles for comprehensive and collision coverage.
Higher deductibles mean you pay less on your monthly premium. You’ll have less out-of-pocket costs if you file a claim and set a lower deductible.
Collision deductibles ranging from $250 to $1,000 are common. Comprehensive deductibles typically range from $0 to $1,000.
When you make your selection, choose a deductible that factors in your car's value and is something you can afford if you must pay it.
You don't have to sacrifice quality coverage and service to lower your premium. We can help with car insurance discounts and savings.
You can also save up to 10% when you bundle auto and property policies. See note 4