When financing or leasing a vehicle, your lender may use the term “full coverage,” but that simply means they’re requiring you to carry comprehensive and collision plus anything else your state mandates. Liability is a required coverage in nearly every state, while comprehensive and collision (physical damage coverages) are optional.

Instead of asking, “is my car insurance full coverage?,” ask your agent or insurance company if you have the right coverages. Paying for every protection offered by your insurance company could be a waste of money. On the other hand, while your lender may consider state-minimum liability as sufficient, that may not be enough coverage to properly protect you and the other drivers on your policy. Your coverages should be customized to you, your family, and your vehicle.

Should I add optional coverages?

If you bought a new car or added a new driver to your policy, consider maximizing your coverages. That means increasing the limits of liability and adding coverages that protect against a damaged or totaled vehicle. Even if your lender doesn’t require any coverage, a new vehicle is an important investment and should be protected as such. Comprehensive and collision will pay for damages to your vehicle due to accidents and incidents that are both in and out of your control.

If your vehicle’s value is extremely minimal (less than $2,000), it may not make sense to carry physical damage coverage. Should you decide to select liability coverage only, make sure you’ll be able to purchase a new vehicle out of your own pocket in the event it’s totaled and uninsured.

Extra coverage like roadside assistance or rental car reimbursement is typically inexpensive and can be purchased at your discretion as well.

What does full coverage insurance cost?

Adding physical damage protection and other optional coverages will cost more than a liability-only policy. How much more will depend on many factors, including the year, make, and model of the vehicle you want to protect, plus the deductible you select (the cost of comprehensive and collision coverage will decrease if you choose a higher deductible). Keep in mind that a policy with extensive coverage can be more affordable than you might think, as Progressive offers many discounts to help you attain cheap full coverage car insurance.