Glossary
Full Coverage
An informal term for a policy that includes liability, comprehensive, and collision coverage.
What is full coverage?
‘Full coverage’ isn’t a single insurance product — it’s an informal shorthand for a policy that combines liability, comprehensive, and collision coverage. It’s the standard package for financed or leased vehicles.
Details
Lenders require full coverage on financed and leased vehicles. Owners of older paid-off vehicles sometimes drop collision and comprehensive (keeping just liability) when the vehicle’s value drops below the cost of those coverages plus deductibles.