‘Full coverage’ is one of the most misunderstood terms in insurance. It’s not actually a specific policy — it’s an informal term that usually refers to a combination of liability, collision, and comprehensive coverage. And despite the name, it doesn’t cover everything. Here’s what it actually means.
The Three Parts of ‘Full Coverage’
1. Liability Coverage
This is the foundation of any auto policy and is required by Tennessee law. It covers damage and injuries you cause to other people and their property. It does not cover your own vehicle or your own injuries.
2. Collision Coverage
This covers damage to your own vehicle when you’re in an accident — regardless of who is at fault. If you hit another car, a guardrail, or back into a pole in a parking lot, collision coverage pays to repair or replace your vehicle (minus your deductible).
3. Comprehensive Coverage
This covers damage to your vehicle from things other than collisions — theft, vandalism, hail, flooding, hitting an animal, falling objects. In West Tennessee, where hail storms and severe weather are a real seasonal concern, comprehensive coverage is particularly valuable.
What Full Coverage Doesn’t Include
This surprises a lot of people:
- Your own medical bills after an accident (that’s what Medical Payments or Personal Injury Protection coverage is for)
- A rental car while yours is being repaired (rental reimbursement is a separate add-on)
- Roadside assistance (also a separate, inexpensive add-on)
- Gap coverage if you owe more on your car than it’s worth (critical for newer financed vehicles)
- Personal belongings stolen from your car — that typically falls under your homeowners or renters policy
Do You Actually Need Full Coverage?
You Probably Do If:
- You have a car loan or lease — lenders typically require it
- Your vehicle is less than 7-8 years old and worth more than $8,000-$10,000
- You couldn’t easily pay out of pocket to replace your car if it were totaled
You Might Consider Dropping It If:
- Your car’s market value is low enough that the coverage costs more than it would pay out
- You have substantial savings and could absorb a vehicle loss without financial hardship
A good rule of thumb: if your annual collision and comprehensive premium is more than 10% of your vehicle’s value, you’re in the zone where dropping to liability-only might make financial sense. But this decision deserves a real conversation, not just a quick calculation.
Talk Through Your Specific Situation
The right coverage level depends on your vehicle’s value, your financial situation, and your risk tolerance. I can walk through your current policy and tell you exactly what you have, what you don’t, and whether your coverage matches your actual needs.
Call or text my Jackson office at (731) 506-4543 or get a quote at [link].
AUTHOR BIO
Wes Harris is a State Farm insurance agent in Jackson, TN. He has served Madison and Gibson Counties since 2008 and holds ChFC and CSA designations. His office is located on Vann Drive in Jackson.