You’ve likely heard or used the phrase “full coverage” auto insurance, and you’re not alone. It’s a common term, but there’s actually no such thing as “full coverage” insurance. It’s not a specific policy type or insurance product you can purchase.
So, what do people mean when they use the term “full coverage” as it relates to auto insurance? Typically, they’re referring to a policy that combines liability, collision, and comprehensive coverages. Adding collision and comprehensive coverage goes beyond the state-required minimum liability coverage.
It’s important to understand the insurance coverage types, what they include, and what they do not include. That way, you can make the right insurance decision for your vehicle and situation.
What people mean by “full coverage” insurance
When someone is shopping for insurance and mentions “full coverage,” they usually mean an auto insurance policy that includes:
Comprehensive coverage: protects your vehicle from non-collision damage (Indiana Farm Bureau Insurance calls this coverage “other than collision coverage”)
This combination of coverages provides protection for damages you cause to others and for damage to your vehicle. That’s why people think of it as “full coverage.”
However, this set of coverages still doesn’t cover everything under the sun. To fully understand what your auto insurance policy covers, contact your local Indiana Farm Bureau Insurance agent. They will be happy to review and discuss your coverage options with you.
What is liability insurance?
Liability insurance is the most basic auto insurance policy you can purchase. Per Indiana law, all drivers in Indiana must have liability auto insurance in place. This coverage protects other people when you’re at fault in an accident, but it does not provide protection for your own vehicle.
Minimum auto insurance requirements in Indiana
What liability insurance covers
Bodily injury liability insurance helps cover:
Property damage liability insurance helps cover:
Liability insurance does not cover:
Costs can add up quickly after an accident. Even if you opt to carry only liability insurance, you can select limits above the Indiana state insurance requirements of 25/50/25. Inadequate coverage can be a major financial risk. Since carrying only liability insurance means you are more financially vulnerable, it’s important to know about the option to add collision and/or comprehensive coverage to make an informed decision.
What is collision coverage?
Collision coverage is a key element of auto insurance. When paired with liability insurance, it’s the next level of protection as a driver. Collision coverage protects your vehicle when you are in an accident.
Collision coverage helps cover your vehicle when you:
To take coverage to the next level and obtain what people mistakenly call “full coverage” auto insurance, you can add comprehensive coverage to your policy.
What is comprehensive coverage
Comprehensive coverage, called “other than collision” at Indiana Farm Bureau Insurance, protects damage to your own vehicle from atypical accidents.
Comprehensive coverage helps cover your vehicle for:
What happens if I’m uninsured or underinsured in Indiana?
Indiana is an “at-fault” state. That means the person who caused an accident is financially responsible for all damages. So, while liability coverage may be a requirement, there’s a good chance it may not be enough coverage for you.
Serious accidents that result in injuries can see medical bills reaching $100,000 or more. If you have the state minimum coverage of $25,000 per person in coverage and you go beyond your policy limits, you are personally liable for the difference.
The penalties for driving uninsured in Indiana are steep.
Do you need collision and comprehensive coverage?
You should strongly consider adding collision and comprehensive coverage if you:
Liability-only coverage might be enough for you if you:
You don’t have to go it alone. Reach out to an Indiana Farm Bureau Insurance agent today. They can help you assess your needs, identify discounts, explain your coverages and adjust coverages as needed for your circumstances. We have agents in all 92 counties in Indiana who specialize in helping you find protection that works for you.
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Coverages subject to policy terms, conditions, and exclusions. Subject to underwriting review and approval.