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What Is Full Coverage Auto Insurance?

Full coverage is the combination of liability, comprehensive, and collision in an auto insurance policy.

When you get a quote for an auto insurance policy, you will have several coverage options. A basic policy includes liability insurance and, in some states, medical coverage and uninsured/underinsured motorist coverage.

When do you need full coverage?

If you lease or finance your car, your bank or dealership will require you to have full coverage for the term of the lease or loan.

Even if you own your car outright, you may want full coverage to help offset the cost of repairs if your car is damaged.

Is full coverage worth it?

The cost of your auto insurance depends on a variety of factors, including the coverages you choose, your driving and insurance history, your annual travel distance, and your car’s make, model, and year.

Full coverage can provide peace of mind that you’ll be able to repair your car if you are involved in a crash, hit a deer, or experience weather damage.

However, if you own your car and it is older than five years, it may not be worth it to have full coverage. Comprehensive and collision insurance only pay up to the actual cash value of your car, less your deductible. Cars depreciate quickly, and eventually the cost of the coverage may exceed the amount you could receive from a covered claim.

The information and descriptions on this site are general in nature. The coverage afforded for a particular loss depends on the specific facts and the terms, exclusions, and limits of the actual policy. Nothing on this site alters the terms or conditions of any policy, as the policy controls coverage. Coverage options, limits, discounts, deductibles, and other features are subject to underwriting criteria, state availability, and effective dates. Coverage provided and underwritten by NJM Insurance Company and its subsidiaries, 301 Sullivan Way, W. Trenton, NJ 08628.