What does it mean when a car is fully insured?
Asked by: Johnnie Mayer | Last update: October 25, 2025Score: 4.4/5 (66 votes)
What does it mean to be fully covered by insurance?
Covered-in-full, or full coverage, means a benefit is paid entirely by your health insurance plan. In other words, it's free for you!
What happens when an insured car is totaled?
California: Insurers must offer a replacement auto or a cash settlement that is equal to a comparable vehicle, including taxes and all applicable fees.
How do I know if my car is fully insured?
When financing or leasing a vehicle, your lender may use the term "full coverage." That means they require you to carry comprehensive and collision plus anything else your state mandates. Liability is a mandatory coverage in nearly every state, while comprehensive and collision (physical damage coverages) are optional.
What does paying car insurance in full mean?
This means paying for at least six or 12 months of insurance all at once instead of paying by the month or quarter.
How Much Car Insurance Do I Actually Need?
How does full car insurance work?
Comprehensive, collision and liability insurance are all included in full coverage. Auto accidents and losses brought on by vandalism, severe weather, fire, or theft will also be covered.
What does fully paid insurance mean?
A paid-up life insurance is a life insurance policy that is paid in full, remains in force, and you don't have to pay any more premiums. It stays in-force until the insured's death or if you terminate the policy.
What does full coverage not cover?
What's not covered with "full coverage"? Your medical expenses and your passengers' medical expenses are not covered by liability, collision, or comprehensive coverages. Medical bills can be covered by purchasing medical payments coverage or personal injury protection coverage.
What is a fully insured car?
Full coverage car insurance typically refers to having a policy that covers multiple things, like liability, comprehensive, and collision coverage. But full coverage isn't an actual insurance term – it usually refers to combining state-required coverages with other optional coverages that fit your specific needs.
Are you insured on a car you just bought?
The truth is your current insurance policy will cover your new car the second you drive it off the lot — typically at the same level of coverage as your old car. But if you don't carry liability or physical damage protection, you may end up stuck at the dealership, or worse, in violation of the law.
Can you ask for more money when your car is totaled?
In some cases, you may get more insurance money for a totaled car than for repairs. In addition, it is possible to negotiate a higher settlement by providing evidence that your car was worth more than the insurance company's initial valuation.
Can you still drive a car that has been totaled?
Some states, including California, require a salvage title for totaled cars legally driven on the road. This entails obtaining approval from the Department of Motor Vehicles (DMV) and adhering to the state's minimum insurance requirements. This is also likely to have a significant impact on insurance premiums.
Is a car totaled if airbags deploy?
Airbags deploying alone will not necessarily render a car totaled. Generally, a vehicle could only be considered totaled if the cost of repairing the vehicle will exceed the value of the vehicle.
What is considered fully insured?
The definition of fully insured plan can be termed as it is the most common type of health benefits plan offered by employers. This traditional health insurance model relies on a third-party insurance carrier to assume financial risk and pay claims for members in exchange for pre-paid premiums.
What happens if I crash my car with full coverage?
Assuming you're covered, your insurer will send a payment to your lender for the actual cash value of the car, minus any deductible. Make sure you give your lender's contact information and the account number to your agent or insurance company.
How much does full coverage cover?
A full-coverage policy will cover damage you cause to other cars and other people's injuries. It also pays to repair your car if you cause an accident or it's damaged by weather, theft or other events. The policy might also include personal injury protection or uninsured motorist coverage.
What are the benefits of being fully insured?
Security and Predictability: Because the insurance company is assuming the risk, a fully insured plan provides a safety net. Likewise, insurance companies have predictable cost structures, making budgeting for health benefits much easier and more straightforward.
Will full coverage fix my car?
Comprehensive coverage pays for repairs to your vehicle if it's damaged due to a cause aside from a collision with another car or stationary object. For example, many policies cover vehicle damage from fires, hail, floods, falling tree branches, glass breakage, hitting an animal, theft, and burglary.
Who gets the insurance check when a car is totaled progressive?
If this is the case, your car is determined a total loss, and we issue you and/or your lienholder payment for the value of your car (minus your deductible if you're a Progressive policyholder).
What are the disadvantages of full coverage?
Cons. Premiums for full coverage are higher. Full coverage, because it potentially will pay more if something goes wrong, is more expensive and thus could be harder to budget for than liability.
Does full coverage insurance cover engine failure?
If you have collision and comprehensive, then your vehicle may be covered if the engine is damaged in an accident or by an event outside of your control. A blown engine that's the result of a mechanical failure or wear and tear won't be covered by comprehensive or collision coverage.
What is the point of full coverage?
Auto insurance with full coverage pays out if your car is damaged, while minimum insurance typically only covers damage to another car or person. If you don't want to be stuck paying for repairs to your car — or wouldn't be able to afford paying for them — you may benefit from this extra coverage.
What is the meaning of full insurance?
Full coverage auto insurance is a term simply used to describe a policy that covers all the main parts of car insurance. This is typically a combination of comprehensive insurance, collision insurance, and liability insurance.
What does fully paid for mean?
: paid for at full face value with no further money due from the stockholder.
What does 100% covered benefit mean?
An example of employer contribution is a company paying 80% of the premium, with employees covering the remaining 20%. In a 100% coverage scenario, the employer bears the entire premium cost.