Full Coverage Auto Insurance After an Accident: What's Covered?

The term full coverage auto insurance is widely used but often misunderstood. There is no single insurance policy called full coverage. Instead, the term refers to a combination of coverages that together provide comprehensive protection. Understanding what each coverage does and how it applies after an accident is essential to maximizing your insurance benefits.

What Full Coverage Typically Includes

Liability coverage pays for the other driver's damages when you are at fault. It includes bodily injury liability for medical expenses, lost wages, and pain and suffering, and property damage liability for vehicle repair or replacement. Most states require minimum liability coverage, but these minimums are often insufficient for serious accidents.

Collision coverage pays for damage to your own vehicle regardless of who was at fault. It covers repair costs or the actual cash value of your vehicle if it is totaled. You pay your deductible and the insurance company pays the rest.

Comprehensive coverage pays for damage to your vehicle from non-collision events such as theft, vandalism, hail, flooding, fire, and animal strikes. Like collision coverage, you pay your deductible and the insurance company pays the rest.

Additional Coverages Often Included

Uninsured and underinsured motorist coverage pays for your damages when the at-fault driver has no insurance or insufficient insurance. This is one of the most important coverages you can have because approximately 13 percent of drivers are uninsured.

Medical payments coverage or MedPay pays for your medical expenses regardless of fault, up to your policy limit. PIP or personal injury protection is similar to MedPay but also covers lost wages and is mandatory in no-fault states.

Rental car coverage pays for a rental vehicle while your car is being repaired after an accident. Gap insurance covers the difference between what you owe on your car loan and the actual cash value of your vehicle if it is totaled.

What Full Coverage Does Not Cover

Full coverage does not cover mechanical breakdowns or normal wear and tear. It does not cover personal belongings stolen from your vehicle. It does not cover injuries to you or your passengers beyond your MedPay or PIP limits. It does not cover intentional damage you cause to your own vehicle.

Filing Claims After an Accident

If the other driver was at fault, file a claim against their liability insurance for your injuries and vehicle damage. If you have collision coverage, you can also file a claim with your own insurance and let them subrogate against the other driver's insurance.

If you were at fault, your liability coverage pays for the other driver's damages. Your collision coverage pays for your own vehicle damage minus your deductible. Your MedPay or PIP covers your medical expenses up to the policy limit.

Conclusion

Understanding your auto insurance coverages helps you maximize your benefits after an accident. Review your policy regularly and consider increasing your coverage limits, especially for uninsured motorist protection.

Use our free settlement calculator to estimate the total value of your accident claim.