Myths of Full Coverage | Shelter Insurance®

Myths of "Full Coverage" Auto Insurance


Did you know that full coverage doesn't truly exist? That's right: full coverage is just a myth. What people really mean when they say they have full coverage is they have the state-mandated minimum liability insurance limits (e.g. liability coverage), along with physical damage coverage.

How is this not considered full coverage? Even if you have all the possible coverage options on your auto policy, it is impossible to be fully covered against all exposures. That's why it is important that, as an insured, you know what coverage options you have and understand how they work.

Liability coverage is a state-required minimum coverage to help pay for damages you may cause, whether it be to someone or something. Bodily injury liability coverage is designed to help pay for medical bills, lost wages, and pain and suffering if you are legally liable for an auto accident that injures someone else, whereas property damage liability coverage will assist with damages you may have caused to another person's property. You should consider purchasing more than the state-required minimum liability limits to help protect your assets.

Collision and comprehensive coverage is optional, yet most lienholders require proof that you have physical damage coverage, as they may have a financial interest in your vehicle. Collision coverage helps you fix or replace your vehicle due to a collision involving your vehicle. Comprehensive coverage helps repair or replace your vehicle for most causes other than collision, such as flood, hail damage, and theft.*

The coverage options and deductibles you select affect how much premium you pay. Your agent can help you choose what works for you. To learn what your current auto insurance policy includes and about coverage options that you can add to your policy, contact your local Shelter agent or check current policies using your My Shelter Account.

*Comprehensive and collision coverage requires a set deductible.