Full coverage insurance gives you one of the highest levels of protection you can get when driving, so it\u2019s a good idea. But the answer will depend on your unique needs (if you have a car loan) and how much coverage or financial protection you need to feel like it is enough coverage.\u00a0 When you are considering which\u00a0auto insuranc<\/span>e<\/span><\/a>\u00a0policy to purchase, you\u2019ll want to make sure you have the best information so you can choose a plan to fit your unique needs and budget.\u00a0<\/span>\u00a0<\/span><\/p>\n People toss around the phrase \u201cfull coverage\u201d when talking about car insurance. What it actually means is a combination of coverages, including comprehensive insurance, collision insurance and liability car insurance. If you take out a loan from a financial institution to finance your vehicle, your lender will almost certainly require you to carry full coverage car insurance<\/a> until you have paid off the car.\u00a0<\/span>Full coverage is a misnomer, however, since your carrier will still expect you to pay your deductible amounts and will only cover you up to your coverage limits.<\/p>\n You also won\u2019t be able to walk into an insurance company and buy full coverage. Since it is comprised of (at least) three different coverages, you will need to buy them separately. However, most agents are savvy enough to understand what you are asking for when you say full coverage.<\/p>\n If your car is fully paid off, you can choose to carry\u00a0comprehensive insurance\u00a0or\u00a0collision insurance\u00a0\u2013 or both or neither. When it isn\u2019t required by a lender, these\u00a0basic types of insurance<\/span><\/a>\u00a0become optional.<\/span>\u00a0<\/span>In many cases, however, you\u2019ll need to purchase both, since some insurance companies won\u2019t offer one without the other.<\/p>\n The other part of full coverage is liability car insurance. <\/span>Almost every state requires a minimum level of liability<\/a> in order to be legal when driving on its roads.<\/p>\n So, you won\u2019t have a choice when it comes to liability \u2013 unless you live in New Hampshire, which doesn\u2019t require its residents to carry liability car insurance.<\/span>\u00a0<\/span>Make sure you have the proper information about your state\u2019s minimum requirements laws to understand how much coverage is needed.<\/p>\n Here is some more information about the three coverage types that make up what we generally mean by full coverage.\u00a0<\/span><\/p>\n\n\nWhat is Full Coverage?<\/span><\/h2>\n