The term “full coverage” is often used by inexperienced insurance agents. It can be misleading to consumers. Adding comp and collision to a policy does not make you have full coverage. What those two deductibles provide coverage for is if your car is stolen, damage from any falling object, fire, theft, collision, and vandalism. If you injure someone while driving, the insurance company will only pay up to the coverage amount stated on your policy. The state of California only requires you to carry $15,000 per person for any injury or death, $30,000 for injury or death of 2 persons per accident and $5,000 for any property damage per accident.
People come in with policies that only have the state minimum with comp and collision. Since an insurance agent told them this is full coverage they have a false sense of security. There is no such thing as “full coverage.” It is important to have an experienced agent to recommend appropriate coverage. Selecting a brand or company you see in TV commercials or hear in radio ads does not guarantee you will have the right coverage, either. Be sure to mention that you own a home and other assets, and details of your occupation, so an agent can provide proper guidance on your insurance needs.