“Full Coverage” Doesn’t Exist


Wait…  There’s no such thing as Full Coverage on my Auto Insurance?

Picture this scenario- You are driving along when suddenly another vehicle runs a red light and hits you causing damage to your car and sending you to the emergency room. A week later you find out that although the damage to your vehicle will be covered by your insurance, your medical bills won’t.

“But I thought I had full coverage?” You say. “Shouldn’t my injuries be covered as well?”

Therein lies the problem with the term “Full Coverage”, assumptions and misunderstandings.  When a term like “Full Coverage” is used, it leads to a lot of assumptions from both parties.  Traditionally, “Full Coverage” equates to having Comprehensive and Collision coverage on your vehicle, in addition to the liability coverage requirements and that is all. Really, it is usually referencing the coverage for your carnot for your medical coverage.

So where did the term Full Coverage come from anyway? It’s hard to say for sure but it likely finds its roots with Auto Finance Companies seeking an easy way to tell their clients what is required when they are financing or leasing a vehicle. The Finance company only requires Comprehensive and Collision coverage because the vehicle is all they care about.

So what’s not covered by “Full Coverage”?

A lot!

  • Uninsured Motorist
  • Personal Injury Protection
  • Rental Reimbursement
  • Roadside Assistance
  • New car Replacement or GAP coverage
  • Full Glass coverage

These and many more coverages are not necessarily being included when you ask for “Full Coverage” but are extremely important coverages to have and understand.  At PNW Insurance Group we pride ourselves in education and explanation of what we are suggesting and how it benefits you.

So How do I make sure I’m fully covered?  Well, the bad news is no insurance company can ever guarantee “full” coverage with no limitations.  Regardless of what they tell you.  Think about what that term implies and I think you’ll get what I mean here.  You buy a policy with limits of some kind depending on what you choose, so your policy will always have some limitations, exclusions etc in it.

The good news, we can help…. a better understanding of what you should ask for will help guide you.  When you are calling an insurance agent or company to get quotes. make sure your policies are adequate for your needs and budget, or just to add a new vehicle don’t just ask for “Full Coverage”.  Instead say “I’d like to understand the different coverage options available to me”, or learn more about your coverage options here.  If you are our client or not, we’d be happy to help to understand your choices, just call us.  Check back next blog post may just help you save some money on your auto insurance or improve your policy!

Thanks for reading….