“Full” coverage… We’ve all heard the phrase, but what does it really mean?
I think it would be wise to start by defining what “Full” Coverage IS NOT. “Full” Coverage is not a term that can be used to describe a single coverage that includes every type of protection under the Sun. Examples of insurance coverage available for personal use vehicles include: Liability, Physical Damage, Medical Payments, Rental Reimbursement, Uninsured Motorist, and Roadside Assistance – just to mention a few.
What’s more, the term “Full” Coverage itself isn’t even a real coverage. Many unsuspecting insurance buyers assume “Full” Coverage is a term that includes all coverages in one. As such, many shop for insurance not knowing exactly what coverages are available to them, or what certain terms even mean.
If “Full” Coverage isn’t a mutually inclusive term used to describe all types of coverage available, then what does it really mean? And… where did the phrase “Full” Coverage come from anyway?
No one knows for sure, but rumor has it, the phrase came about in dealerships. Most people know that you need insurance for a car you just bought in order to drive it off the lot. It wouldn’t be too farfetched to assume that eager car salesmen probably insured vehicles while loosely throwing the term “Full” Coverage around to describe the kind of coverage car buyers received with their new vehicle. Again, there is no concrete proof that the phrase really originated in car dealerships, but so goes the myth.
The phrase “Full” Coverage these days is most commonly used to describe two separate coverages: Liability + Physical Damage insurance. The former covers harm to people you may injure, or property you may damage. The latter refers to protecting your vehicle if you get in an accident or if it is stolen.
What users of the phrase “Full” Coverage probably meant was that both cars (the one you may hit and your own) are covered by this combination of coverage. We’ll go into more detail about these two in a later blog post. Remember to keep this in mind the next time you’re shopping for car insurance!