Clients ask for "full coverage" all the time, but it's worth knowing that full coverage is not a real, defined term in insurance. There's no policy form called "full coverage." It's shorthand most people use to mean liability plus physical damage coverage. Spelling out the actual parts avoids misunderstandings at claim time.
Liability-only
This is the legally required baseline in most states. It pays for injuries and property damage you cause to others. It does not pay for damage to your own car. A driver with an older, low-value car who could afford to replace it might choose liability-only.
What people mean by "full coverage"
Usually liability plus two added coverages for your own vehicle:
- Collision — damage to your car from hitting another vehicle or object, or a rollover, regardless of fault.
- Comprehensive — non-collision losses like theft, fire, vandalism, hail, flood, and hitting an animal.
Even "full coverage" doesn't mean everything. It typically still doesn't include things like roadside assistance, rental reimbursement, or gap coverage unless those are added separately.
The practical guidance
If a car has a loan or lease, the lender almost always requires comprehensive and collision. If the car is paid off and worth little, liability-only may make sense. The right answer is a budget-versus-risk conversation, not a label.
Educational only — confirm against the actual policy and your carrier's guidelines.