Full coverage auto insurance is a term that is loosely thrown around by people within the auto insurance industry, and it typically means a policy that will cover the damages incurred by the vehicle the policyholder was driving.
You may be wondering why this would be distinct at all, as the general thinking is that most auto insurance polices cover the damages that happen to one's vehicle during a wreck.
Well the truth is, it depends on the policy, but the minimal amount of coverage you are required to purchase by most states will not cover these kinds of damages.
Every state in the United States requires you to purchase a minimal amount of coverage to drive legally.
This minimal amount of coverage does not cover a whole lot, and is essentially required so that if you ever do get in an accident, you'll have enough coverage to pay for the damage you caused other parties, and other property.
It does not typically cover the damages caused to your vehicle if you are ever in a wreck, and this can be news to some people.
There is always the option of purchasing additional coverage, and this is why a "full coverage" policy is given the name "full coverage", because it does in fact provide coverage for virtually all the damages that happen during an accident.
If you are a driver, you can ask you insurance representative about some of the different kinds of plans and policies that can make it so that you do in fact have a full coverage policy.
Many car loan lenders require you to obtain a full coverage policy so that if you ever are in a wreck, and significant damage is done to your vehicle, they'll be covered regardless of whether you can afford to repair the car or not.
Make sure you understand beforehand the requirements of your lenders, as many people get approved only to find out that they must pay additional costs for insurance they never knew they had to buy.