Wilmington, N.C. – October 02, 2026 -- Drivers who assume "full coverage" car insurance protects against every possible loss may be in for a costly surprise, according to insurance expert Tammy McNeill of Wilmington, NC.
Full coverage is a bundle, not a standardized policy
The term typically refers to a combination of liability, collision, and comprehensive coverage rather than one uniform product. Liability coverage pays for injuries or property damage the insured driver causes to others, with limits that vary by state and policy. It generally does not pay to repair the policyholder's own vehicle after an at-fault accident.
Collision and comprehensive coverage fill different gaps
Collision coverage helps pay for damage to an insured vehicle after hitting another vehicle or object, and in some cases single-vehicle accidents, depending on policy terms and the applicable deductible. Comprehensive coverage addresses damage unrelated to a collision—theft, vandalism, hail, falling objects, or an animal strike—though exact covered events depend on the individual policy.
Deductibles shift cost between premiums and out-of-pocket expenses
A deductible is the amount a policyholder pays toward a covered loss before insurance pays the rest. Choosing a higher deductible can lower premiums while raising what a driver owes after filing a claim.
Extra protections aren't automatic
Uninsured or underinsured motorist protection, medical payments coverage, and personal injury protection may be available or required separately, but McNeill's guidance warns drivers not to assume these are included just because a policy is labeled full coverage. Optional add-ons like rental reimbursement or roadside assistance carry their own conditions and limits.
Limits, exclusions, and lender requirements still apply
Even with collision and comprehensive included, coverage isn't unlimited—the declarations page lists the specific coverages, limits, and deductibles for each insured vehicle. Policies can also exclude certain drivers, vehicle uses, or circumstances. Financed or leased vehicles may face additional physical damage requirements set by the lender or leasing company, separate from state-mandated insurance.
Two drivers using the same term to describe their coverage can carry very different limits, deductibles, and exclusions. Reviewing each policy component individually, rather than relying on the general label, gives drivers a clearer picture of their actual financial exposure after a loss.