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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
- Policies that include liability, collision, and comprehensive coverage
- Policies that have the state-minimum insurance plus any coverage required by a lender or lessor
- Policies that provide anything more than the minimum required liability coverage
- Policies that cover anything and everything in the event of an accident
Although the definition of full coverage insurance may be different depending on whom you ask, the definition shouldn’t matter too much. You should always decide what car insurance to purchase, and how much, based on your own individual coverage needs as well as your budget.
Full coverage insurance costs can vary wildly depending on your state and what car you drive, since coverage types like collision and comprehensive are based on a car’s actual cash value. To learn more, check out WalletHub’s guide to full coverage car insurance and compare the cheapest full coverage car insurance companies.
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