Depending on the state in which you live, the levels of car insurance that combine to constitute ‘full coverage’ may be greatly varied. In most states, full, or ‘physical damage coverage,’ refers to the maximum available insurance for comprehensive coverage, liability coverage and collision coverage. In addition, full coverage car insurance provides coverage against uninsured and underinsured drivers.

In general, collision coverage refers to damage caused to your vehicle in an accident, including crashes with other cars. Comprehensive coverage protects you from damage caused by anything but a traffic accident, including damages to your vehicle through vandalism, arson and theft, along with natural weather damage and collisions with animals. The reason collisions with animals are not included in collision coverage is because they are deemed less likely to be the driver’s fault. Liability coverage is the minimum insurance required by most states, and covers damages caused by a motorist to another driver’s property or person. Before driving on the road, each motorist must possess liability coverage, though most states do not require drivers to insure themselves against damages to their own property or self.

In most states, a motorist can elect to purchase comprehensive coverage without collision, but not collision without comprehensive. An auto insurance policy that includes the mandatory liability coverage and comprehensive coverage is an option that lies in between the legal minimum and ‘full coverage.’  This may be an attractive preference for a person looking for cheap, quality insurance for a moderately low-value automobile. Consider though, that while collision is usually thought of as an optional addition to an insurance policy, it is almost always required by finance companies who are still owed money on financed cars.