Full coverage is a policy that includes collision and comprehensive 

coverage in addition to a state’s minimum car insurance requirements.

 

Unlike liability insurance, full coverage covers the policyholder’s own expenses, even in accidents where they are at fault.

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Collision insurance is coverage that pays to repair or replace your car after any accident.

 

Comprehensive insurance, on the other hand, covers repair expenses when your car is damaged by something other than an accident, such as vandalism or a natural disaster.

 

Neither type of insurance is required by state law, but you usually have to get both if your car is leased or financed.

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Full coverage can also include other types of insurance, such as personal injury protection, medical payments coverage, and uninsured/underinsured motorist insurance.

 

Some states require drivers to have these types of insurance anyway, but they may be optional in other states.

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Does Full Coverage Include Liability?

 

Liability coverage is the foundation of most car insurance policies. Depending on where you live, full coverage usually includes either medical payments coverage (Medpay) or personal injury protection (PIP). This coverage would pay for medical bills that resulted from a covered accident — up to the policy limit. It’s important to be aware that Medpay or PIP is required in most states, but not in all of them. So check with your agent about your state’s legal requirements to learn how full coverage is mandated there.

Liability insurance is a type of coverage that pays for injuries and property damage sustained by other people and their property in accidents that you cause.

 

Nearly every state requires drivers to carry liability insurance, and in many states, liability insurance is the only type of car insurance that you need to have.

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Keep in mind that liability insurance will never pay for your own expenses after a car accident, so if you want your own medical bills and repair costs to be covered, you will need to get additional coverage.

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Liability car insurance policies do not cover an unlimited amount of damage. When you purchase liability car insurance, your policy will include coverage limits described by three numbers. For example, the minimum required liability car insurance in California is 15/30/5.

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These numbers represent the following:

• A maximum of $15,000 is paid for bodily injury liability per person per accident

• A maximum of $30,000 is paid for bodily injury liability total per accident

• A maximum of $5,000 is paid to cover property damage liability per accident

Minimum requirements vary by state, but you can always purchase higher-limit policies than your state minimum. If your insurance policy fails to cover the full costs associated with an accident that you cause, you can be sued in civil court to make up the difference.

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Basic, state-mandated car coverage

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California requires some form of automobile insurance. They typically require these types of coverage:​

• Property damage liability insurance

• Bodily injury liability insurance

An SR-22 is a certificate of financial responsibility required for some drivers by their state or court order. An SR-22 is not an actual "type" of insurance, but a form filed with your state. This form serves as proof your auto insurance policy meets the minimum liability coverage required by state law.

 

Do I need an SR-22?

Not everyone needs an SR-22. Regulations vary from state to state. Usually, it is required by the court or mandated by the state only for certain driving-related violations. For example:

• DUI convictions

• Reckless driving

• Accidents caused by uninsured drivers

 

If you need an SR-22/FR-44, the courts or your state Motor Vehicle Department will notify you.

Non-owner insurance, also called non-drivers insurance, provides liability coverage for bodily injury and property damage when you are driving a vehicle you do not personally own. So, should you be in an accident with another driver and found to be at-fault, your non-owners insurance policy would shield you from lawsuits, just as a normal liability policy would.

Aside from liability coverage, which pays for injuries and property damage to the other party if you’re in an accident, a non-owner auto insurance policy can also include:

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• Medical Payments or Personal Injury Protection Coverage

• Uninsured or Underinsured Motorist Liability Insurance

• Rental Car Liability Coverage

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Since there’s no specific vehicle assigned to a non-owner auto insurance policy, it won’t include comprehensive or collision coverage. Therefore, it won’t cover damage to the car you’re driving, medical bills or other costs from injuries you sustain if you’re in a collision.

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How Does Non-Owners Auto Insurance Work?

Non-owner car insurance is purchased on a per-person basis, so only you will be covered by a policy, not your spouse or anyone else.

Typically, non-owner policies have no deductible, meaning you don’t have to pay any money yourself before coverage kicks in. This is because non-owner insurance is generally secondary coverage, utilized only if the car owner’s primary coverage isn’t sufficient to cover all damages.

For example, let’s say you got into an accident while driving your friend’s car, and your friend’s insurance had a $25,000 limit for property damage liability. If you had caused $40,000 of damage, you would be responsible for the excess $15,000 in damages. This amount would be covered by your non-owners policy, but only if it included at least $40,000 of property damage liability coverage. Unless your non-owners liability limits are greater than those of the person whose car you’re driving, your non-owners insurance won’t come into play.