The Myth of "Full Coverage"

This will be a short and sweet message for this week. If you have searched through your policy, I bet you didn't find the term, "Full Coverage" did you? Why not? It's not a legitimate insurance term! If it was, the attorneys and underwriters that are involved in putting together the language you see on your policy would have written it in there.

The term is primarily used by people who are selling vehicles and not involved in any way with insurance and by agents. Remember, agents sell insurance products and are not involved with coverage investigations, the actual investigation of any claims, deciding issues of liability or what claims get paid and which ones do not. Insurance claims adjusters really don't like the term because while it sounds like an all encompassing phrase, it is really vague and not a legitimate term.

The usage of this term leaves the policyholder with the impression that any type of loss whether at fault or not; has a coverage on their policy to cover it. You believe those aftermarket parts you put on your vehicle are covered, when in fact they are not. Yep, those upgraded wheels and rims, not covered unless you bought coverage specifically for them.

Remember from our prior blogging, if your policy doesn't show you paying for a coverage, you don't have that coverage! This is why adjusters verbally cover each and every coverage a policyholder has on their policy while speaking with them about their claim. More times than not, this is where I will get an ear full from the policyholder. It's here they find out that coverages they thought were on their policy, are not there. All because of that pesky phrase, "Full Coverage"!!

I make it a point to educate policyholders that the term "full coverage" is not a legitimate term and all coverages on their policy are listed, one by one. Why? So, the policyholder can identify any coverage they want on their policy and address any that aren't listed that with their agent BEFORE they have a loss and find out they don't have the coverage for that loss.

Should you EVER get that dastardly "full coverage" phrase from your agent or claims department, drop some knowledge on them and tell them NOT to use that phrase as you can see how misleading it is. There is truth behind the phrase, "Words have meaning" especially when wrong ones are used.

A topic to write a blog on has been suggested to me. "What should I do right after being in an auto accident"?  So, take a guess, what the next blog will be about? You got it! So tune in and learn the things the insurance industry and attorneys don't want you to know.

Your mission this week, should you choose to accept it, gather the following supplies and place them in your car; disposable camera, flashlight (and extra batteries or one that doesn't require batteries), notepad and pen, flares, and a photocopy of your insurance card in addition to the original.


When you find yourself one day in an auto accident, you will have the information available and in mind to handle that accident like a pro!