People use the term “full coverage” to refer to a combination of policies, specifically liability, collision, and comprehensive insurance. Not every driver needs all three, but some decide to purchase them.
Collision coverage is no-fault insurance that covers any damage to your vehicle sustained in a crash. This can involve collisions with other vehicles or with stationary objects, like a tree. Because collision coverage is no-fault, it doesn’t matter if the accident happened because you were negligent. You could have been speeding, run a red light, and T-boned another car. Collision coverage will pay to repair your vehicle up to the policy limit.
Comprehensive coverage also will pay to repair your car but only when it is damaged for non-collision reasons. Comprehensive kicks in to cover fire or water damage and even theft. It is also no-fault insurance, so it does not really matter why your vehicle was damaged.
As you can see, collision and comprehensive insurance do not pay out any benefits forpersonal injuries, not even your own. Car lenders often require that people with a car loan buy full coverage because it protects the value of the car. However, if you don’t have a loan then you might forgo collision and comprehensive if your car is not too valuable.