Skip to main content

Full coverage is a myth!

Whenever I hear to term "full coverage" I wince a little bit.  There is no such thing as full coverage.


Not only do you not have full coverage (since there is no such thing), but many people don't even carry adequate coverage limits.

Full coverage does not exist because every policy limits the scenarios that trigger a covered event. Even when there is a covered event there will be a specified limitation of the amount of coverage that would respond. And even when that limit of coverage is adequate for the loss, there may be a deductible or copay provision for that coverage.

There is no full coverage policy.

On top of that, people may have a different understanding of the coverages included in "full coverage."  When the bank requests that a customer have full coverage, they are not referring to towing coverage or rental reimbursement coverage. The bank typically doesn't even care if their borrower carries bodily injury coverage unless its a lease. The borrower may carry woefully inadequate coverage limits and still meet their criteria for "full coverage."

Then you have the insured themselves. When you hear full coverage do you think about uninsured motorist coverage?  Do you think about medical payments coverage?  Many people choose not to carry these coverages despite them being vital to recovering financially from a loss since they are not required by either state law or their lender.

The agent may even be confused when the "full coverage" term is tossed around. There are over 25 million combinations of a standard auto policy in Florida, and using the term full coverage may invite the agent to make their best guess of what the insured is trying to purchase. Since very few motorists in Florida carry 1,000,000 bodily injury coverage with all the bells and whistles, the agent may assume full coverage to mean just what the bank requires to the satisfy the loan.

My recommendation is to always ask "What is not included on my policy and what would it cost to add it?"

If you would like to review your auto insurance, please let us know.