Generally, when someone refers to “full coverage,” they mean the inclusion of both comprehensive and collision insurance on one’s auto insurance policy. Insuring a car in Los Angeles does not require a driver to pay for both types of coverage, though a lender may require this coverage if the vehicle being insured is going to be leased or financed in order to protect their investment.
Collision insurance, as the name would imply, provides coverage for the insured vehicle should it be involved in an accident, subject to a deductible. The function here, obviously, is to pay for the repair of the vehicle, or to provide a cash settlement should the vehicle be deemed unrepairable. A confident driver may consider this coverage superfluous and choose not to register for it, though as previously mentioned, most lenders will demand that this be included in a policy.
Comprehensive auto insurance is a less black and white, as it covers damage caused by reasons other than a collision with another vehicle. Often, this can take place as a result of flood, theft, vandalism, impacts with animals, etc. A great deal of litigation has come from the interpretations of what should fall under this umbrella. Suffice to say, it is generally a good idea to pay for comprehensive insurance, even if you are not required to do so.
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