Full coverage car insurance normally refers to collision and comprehensive coverage. In reality, there is no such thing as full coverage car insurance, but collision and comprehensive coverage comes closest to a strict definition of the former. This type of insurance policy is optional to car owners, but a number of auto dealerships would insist on buyers to get collision and comprehensive coverage -- if it was bought using a loan -- until such time that the car has been paid in full. This will serve as a protection for car dealerships since vehicles are considered their properties until it has been fully paid by a customer.
A collision provision of a full coverage car insurance protects the policyholder against any damage or loss to property or person caused by a collision, such as collision with another vehicle or animal. For example, if a motorcycle collided with your car causing damage to both vehicles with the motorcycle driver ending up getting hurt, you can file for claims using your car insurance. The insurance company is then obligated to pay all expenses related to the accident, minus deductibles.
Even if it was decided that it was the motorcycle driver which caused the accident, you could still qualify for compensation. Claims are awarded regardless of who was responsible for a traffic incident.
The comprehensive part of full coverage car insurance protects policyholders from any damage or loss to property or person caused by factors other than a collision, such as theft/attempted theft, fire, natural calamities and severe weather conditions. For example, if your car was vandalized, and as a result, windows were destroyed, you could request compensation for replacement. Another example would be if you caught yourself in a hailstorm resulting to exterior damages, you could file for claims for repairs. Again, the amount that insurance companies pay policyholders is less than that of deductibles.
However, personal property is not covered by this type of car insurance. For example, you car figured in a mishap and some expensive personal belongings inside the vehicle were damaged as a result of this accident, you will not be eligible to apply for compensation for those personal items.
Towing expenses are also covered by this type of insurance policy, but normally excludes cases where breakdowns were caused by mechanical failure like flat tires and faulty batteries. In this case, insurance companies are only obligated to pay for towing fees only if the cause of the breakdown were non-mechanical in nature such as collisions and traffic accidents.
With this in mind, some companies have introduced new insurance plans that allows for reimbursement of towing fees regardless if the breakdown was related to a mechanical failure or not.