FULL COVERAGE: MYTHS AND REALITIES

• Engine, transmission, or electrical system failures
• Normal wear and tear on tires, brakes, or batteries
• Routine maintenance and preventive services
• Damage resulting from long-term vehicle use or deterioration

Common Misunderstanding: Personal belongings stolen from inside your vehicle are generally not covered under an auto insurance policy.

Reality: There Is No Insurance Product Officially Called "Full Coverage.”

Insurance companies sell individual coverages—not a policy formally named "Full Coverage."

When people use the term, they are generally referring to a combination of:

• Liability Coverage
• Collision Coverage
• Comprehensive Coverage

Common Misunderstanding: Two drivers may both claim to have "Full Coverage" while having significantly different levels of protection.

Coverage limits, deductibles, endorsements, and exclusions vary by insurance company, policy form, and driver profile.

Reality: Every Policy Includes Deductibles and Coverage Limits.

A deductible is the amount you must pay out of pocket before your insurance company pays the remaining covered loss.

Example: If repairs cost $3,000 and your deductible is $500, you are responsible for paying the first $500, and your insurance company may cover the remaining eligible amount.

Common Misunderstandings:

• Deductibles may differ between Collision Coverage and Comprehensive Coverage.
• Liability limits matter. If damages exceed your policy limits, you may be legally responsible for the remaining amount.
• "Full Coverage" does not eliminate financial responsibility following an accident.

Reality: These Are Optional Coverages That Must Be Selected Separately.

• Roadside Assistance
• Rental Reimbursement Coverage

Common Misunderstandings:

• Rental reimbursement generally applies only to covered claims, not mechanical breakdowns.
• Roadside assistance often includes usage limits, service limitations, or maximum benefit amounts.
• Coverage availability and benefits vary among insurance carriers.

Reality: You Need UM/UIM Coverage for That Protection.

Uninsured/Underinsured Motorist Coverage (UM/UIM) is not automatically included simply because you carry Collision and Comprehensive Coverage.

Common Misunderstandings:

• UM/UIM may help cover medical expenses and, in certain situations, vehicle damage caused by an uninsured or underinsured driver.
• Without UM/UIM coverage, drivers may experience significant financial losses even when they are not at fault for the accident.

Instead of asking for "Full Coverage," drivers should focus on understanding the actual protections included in their policy:

• Coverages included
• Policy limits
• Deductibles
• Optional endorsements and coverages

Insurance protection is defined by the terms of the policy contract—not by informal labels such as "Full Coverage."

It is imperative to carefully review your policy to ensure you have the protection you expect and to avoid unexpected coverage gaps when a loss occurs.

*It is important to understand that policy terms, conditions, and coverage availability may vary from one insurance company to another. It is critical to carefully review each policy in order to fully understand the scope of coverage and any exclusions that may apply.