Santa, The Easter Bunny and Full Coverage Auto Insurance

Updated: Jul 10, 2020

What do Santa, the Easter Bunny and full coverage auto insurance have in common? None of them exist. I know some of you're thinking:

"I have full coverage auto insurance. What do you mean it doesn't exist?"

The term refers to a handful of coverages that are bundled together to create a basic auto insurance policy. While some coverage options vary from company to company, a basic auto policy, or "full coverage", in California consists of the following:

Liability Coverage

This type of coverage pays for damages and injuries to other parties that YOU ARE LIABLE FOR. It does not provide any protection for damages or injuries to you or your vehicle.

The state of California requires all drivers to have liability insurance at all times with minimum coverage limits of $15,000/$30,000/$10,000. But what do those numbers even mean? These amounts are the amount of money that your insurance company will pay out in the event of accident you cause.

$15,000 for bodily injuries you cause someone else

$30,000 total amount insurance company will pay per accident for injuries to other parties

$10,000 for property damage you cause someone else

Collision Coverage

This type of coverage pays for damage to your car from an accident with another car or a physical object, such as a deer minus your deductible.

Comprehensive Coverage

This type of coverage pays for damage to your car from events other than a collision, such as theft, fire, or vandalism minus your deductible.