If you’ve ever shopped for auto insurance, you’ve probably said the same thing I hear almost every day.
“I just want full coverage.”
In fact, someone called me today asking for quotes on their home and auto insurance. They told me they wanted “full coverage” and glass coverage.
Before I could even start building a quote, I had to stop and ask a few questions.
What do you mean by “full coverage?”
It’s not a trick question. It’s one of the biggest misunderstandings in insurance.
The truth is, there is no insurance policy called “full coverage.” You won’t find it on a declarations page. No insurance company sells a policy with “Full Coverage” printed across the top.
That surprises a lot of people.
Most people simply mean, “I want to be protected if something bad happens.”
The problem is that everyone defines that protection a little differently.
That conversation today turned into a discussion about liability limits, collision, comprehensive, deductibles, glass coverage, rental reimbursement, roadside assistance, and uninsured motorist coverage. By the end, the client realized there were several coverages they had never even thought about.
That’s why I believe asking for “full coverage” is the wrong question.
The better question is:
“What risks do I actually want to protect myself against?”
Myth #1: “Full coverage” is an actual insurance policy.
This is probably the biggest myth I hear.
People assume there is a standard package that covers everything.
There isn’t.
When someone says “full coverage,” an insurance company usually assumes they’re talking about three basic coverages:
- Liability
- Collision
- Comprehensive
That’s a good starting point.
But it doesn’t automatically include everything you might expect.
For example, it may not include rental reimbursement. It may not include roadside assistance. It may not include uninsured or underinsured motorist coverage. It may not include the level of liability protection your family really needs.
Two people can both say they have “full coverage” and have policies that look completely different.
That’s why comparing insurance based on that phrase alone doesn’t really tell you anything.
Myth #2: If I have “full coverage,” everything is covered.
I wish it worked that way.
Every policy has limits.
Every policy has exclusions.
Every policy has deductibles.
Let’s say you’re driving down Ellsworth Road after work. A summer monsoon rolls through. Visibility drops. Another driver slides into your vehicle.
Your policy may cover the repairs.
It may cover your injuries.
It may help pay for a rental vehicle.
Or it may not.
It all depends on the coverages you selected before the accident happened.
The same goes for something as simple as a shopping trip near Queen Creek Marketplace. Someone backs into your parked car. Does your policy respond the way you expect?
Maybe.
Maybe not.
That’s why understanding your policy matters much more than simply asking for “full coverage.”
Myth #3: Glass coverage is automatically included.
This is another question I hear all the time.
Arizona drivers deal with windshield damage constantly.
Between freeway rock chips, construction, and our desert roads, replacing windshields is almost a way of life.
Many people assume that because they have “full coverage,” glass replacement is automatically included.
Sometimes it is.
Sometimes it isn’t.
Sometimes it’s available with no deductible.
Sometimes your comprehensive deductible still applies.
It depends on the company and the policy you choose.
That’s exactly why the caller today specifically mentioned glass coverage. They had heard enough stories from friends to know they wanted it, but they weren’t sure whether it came with the policy.
It’s a great example of why asking questions before you buy is so important.
Myth #4: The cheapest policy with “full coverage” is the best deal.
This one may be the biggest mistake of all.
Most people shop insurance the same way they shop for gasoline.
They assume it’s all basically the same.
Insurance isn’t gasoline.
Two quotes can have the same monthly payment and provide very different protection.
Or one quote might save you fifteen dollars a month because it lowered your liability limits, increased your deductibles, or removed coverages you didn’t even realize were there.
That’s why I don’t believe my job is simply to find the cheapest policy.
Some people in my industry may disagree, but I’d rather spend ten extra minutes helping someone understand their options than hand them the lowest price and hope everything works out.
My goal isn’t to sell you more insurance than you need.
My goal is to make sure you understand what you’re buying.
Once you understand it, you can decide what fits your family and your budget.
So what should you ask for instead?
Instead of asking for “full coverage,” ask your agent to walk you through these questions.
- How much liability protection do I have?
- Do I have collision coverage?
- Do I have comprehensive coverage?
- How does my glass coverage work?
- What deductible am I comfortable paying if I have a claim?
- Would rental reimbursement make sense for my family?
- Do I want roadside assistance?
- What happens if I’m hit by someone who has little or no insurance?
Those questions will tell you far more than the words “full coverage” ever will.
My advice
Insurance shouldn’t be confusing.
You shouldn’t have to learn what your policy covers after an accident.
Whether you’ve lived in Queen Creek for twenty years or you just moved into one of the newer neighborhoods off Combs Road or Ironwood Road, your insurance should match the way you actually live and drive.
The next time you’re shopping for insurance, don’t just ask for “full coverage.”
Ask your agent to explain your options in plain English.
If they can do that, you’ll have a much better understanding of what you’re paying for and, more importantly, what you’re protected against.
And if you’re curious about your current policy, pull out your declarations page and see if you can answer one simple question:
If something happened tomorrow, would I know exactly what my policy covers?
If the answer is “I’m not really sure,” that’s a great place to start. Whether you review it yourself or sit down with an agent you trust, a thirty-minute conversation today can prevent a lot of confusion later.
Because at the end of the day, the goal isn’t to have “full coverage.”
The goal is to have coverage you fully understand.