McKayla Girardin, Car Insurance Writer
@mckayla_girardin
No, collision insurance is not the same as full coverage, but it is a key component of a full coverage policy, along with comprehensive coverage and any state-mandated types of insurance. Collision insurance covers damage to the policyholder’s vehicle after accidents they are at fault for.
Collision Insurance vs. Full Coverage
| Category | Collision Insurance | Full Coverage Insurance |
| Average Annual Cost | $382 | $1,997 |
| Required by State Law? | Never | Never |
| Includes Comprehensive Insurance? | No | Yes |
| Includes Liability Insurance? | No | Yes |
| Includes PIP? | No | Sometimes |
| Includes Uninsured Motorist Coverage? | No | Sometimes |
Full coverage insurance is sort of a catch-all term, more often used by consumers than insurance companies themselves. Some people may use full coverage to refer to a policy that protects the policyholder financially from anything and everything in the event of an accident, while others would say full coverage is any policy that goes beyond the minimum coverage required by state law. Most often, however, full coverage is defined as the combination of collision insurance, comprehensive insurance and any required coverage. In any case, it’s more than collision insurance alone.
To learn more, check out WalletHub’s guides to collision insurance and full coverage insurance.
People also ask
What is collision insurance?
Collision insurance is a type of car insurance coverage that pays to repair or replace your car if you’re involved in an accident, regardless of who was at fault. Collision car insurance is never required by state law, but dealerships and banks usually require it for leased or financed cars. It only pays for damage to your own vehicle, and it does not include coverage for medical bills.
What Collision Insurance Covers
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What is full coverage insurance?
Full coverage insurance is an insurance policy that protects your vehicle from accident-related and non-accident-related damage, ensuring you are covered regardless of fault. Full coverage insurance often consists of collision insurance, comprehensive insurance, and at least the minimum coverage required by state law.
“Full coverage” is a term that is more commonly used by consumers than actual car insurance companies. Because of this, there are some varying definitions.
Common Definitions for Full Coverage
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How do I know if I have full coverage?
You know you have full coverage auto insurance if you have comprehensive and collision plus any other insurance your state or lender requires. Full coverage is not an official kind of insurance, but the term generally describes a policy that protects the policyholder and their car in most situations. If you aren’t sure what insurance you have, you can check your online account for details. Or, you can look at your car insurance card for your insurance...
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