Never ask for full coverage insurance

Published Date: 10/18/2025

Why You Should Never Ask for “Full Coverage” Insurance — and What to Ask Instead

When most people walk into an insurance office or call an agent, they often begin the conversation with the same phrase:

“I want full coverage.”

It sounds reasonable. After all, who wouldn’t want their car, home, or business to be “fully covered”? The problem is that “full coverage” doesn’t actually exist—at least, not in the way most consumers imagine it. It’s a vague phrase that can lead to costly misunderstandings and dangerous coverage gaps.

Insurance expert Karl Susman, host of The Insurance Hour, explains that the phrase “full coverage” is one of the most misleading and overused terms in the industry. Instead of asking for full coverage, he says, consumers should have a clear, detailed conversation about what they want protected, from what, and to what extent.

Here’s how to do that, using five key steps that can help you build the right policy for your needs—without paying for protection you don’t need or assuming coverage you don’t actually have.

1. Explain in Detail What You Want to Insure

The first—and perhaps most important—step is clarity. Before you ask for quotes, take time to think about what exactly you’re trying to protect.

That might sound obvious, but many people approach insurance with generalities: “I want car insurance,” or “I need to insure my home.” The truth is, every policy has different components that cover different things.

For example:

• Auto insurance can include liability, collision, comprehensive, medical payments, uninsured motorist, and more.
• Home insurance can include dwelling protection, personal property coverage, liability, additional living expenses, or scheduled items (like jewelry or art).
• Business insurance can include general liability, property damage, professional errors, cyber protection, or business interruption.

When you say “full coverage,” you’re leaving it up to the agent to decide what that means. And that assumption can lead to missing important protections.

Instead, be specific. Say things like:

“I want my car covered for theft and vandalism.”
“I want my business protected if someone sues us for a mistake.”
“I want my home policy to include coverage for backup from the sewer line.”

This kind of clarity ensures your agent understands your priorities—and can build a policy that actually fits your life.

2. Make It Clear What Types of Losses You Want Protection From

Once you’ve defined what you want to protect, the next step is to define what kinds of losses you’re worried about.

Insurance is based on risk transfer—you pay a premium to transfer specific financial risks to an insurer. But not every risk is covered automatically.

Ask yourself questions like:

• Do I want protection from accidental damage, theft, or natural disasters?
• Am I more concerned about liability lawsuits or physical loss?
• Do I need replacement cost (full repair value) or actual cash value (depreciated value) coverage?

For example, in auto insurance, “full coverage” is often assumed to mean liability + collision + comprehensive. But it might not include rental reimbursement, gap coverage, or uninsured motorist protection—all of which can become essential in the right circumstances.

The same logic applies to home and business insurance. Floods, earthquakes, and sewer backups are not covered by standard homeowners policies. Unless you specifically ask for those protections, you might find out—too late—that your “full coverage” didn’t include them.

3. Don’t Rely on Your Most Recent Policy

Another common mistake Susman warns against is assuming that your last policy was adequate. Many people simply renew year after year without reviewing what’s actually in their coverage.

That’s risky for two reasons:

1. Your circumstances change. You might buy new jewelry, remodel your home, add a driver, or start working from home. Each of these can change your coverage needs.
2. Policy terms evolve. Insurance carriers adjust their coverage forms regularly—sometimes adding exclusions or limitations without you noticing.

If you copy your old policy or tell your agent, “Just do what I had before,” you could be carrying over old decisions that no longer make sense.

For instance, you might have purchased your car five years ago when it was new and worth insuring for collision. But now, if the car’s market value is low, dropping collision coverage might save money without increasing risk.

Conversely, maybe your previous policy didn’t include ordinance and law coverage for your home—essential if you need to rebuild under newer building codes. Without reviewing and updating, you could miss critical updates that protect your financial future.

The takeaway? Treat every renewal or new purchase as a fresh start. Don’t let outdated policies make decisions for you.

4. Tell Your Agent What’s Important to You

Insurance is not one-size-fits-all. For some people, the top priority is physical protection—making sure their car, home, or belongings can be repaired or replaced after a loss. For others, it’s liability protection—making sure a lawsuit doesn’t destroy their savings.

Your agent isn’t a mind reader. You need to communicate what matters most.

If all you care about is damage to your car, say that. If you’re more worried about being sued after an accident, emphasize liability coverage. If you’re insuring your home, let your agent know whether your priority is your house, your contents, or your personal exposure.

That information shapes how your policy is structured and which coverages receive higher limits. It also helps your agent recommend optional coverages—like umbrella insurance, which can provide millions in extra liability protection for a surprisingly low cost.

By being upfront about your priorities, you empower your agent to tailor your policy around your goals, not generic assumptions.

5. Know How Much Risk You’re Willing to Accept

Finally, every insurance policy involves a tradeoff between premium and risk. The higher your deductible—the amount you pay out of pocket before insurance kicks in—the lower your monthly premium.

This is where your personal risk tolerance comes in.

Ask yourself:

• How much could I comfortably pay if something happened tomorrow?
• Would I rather pay a higher monthly premium to avoid large surprise expenses, or take on more risk to save money?

If you have a strong emergency fund and can handle small losses, a higher deductible might make sense. If you’d struggle to cover an unexpected repair, a lower deductible may be worth the higher cost.

Susman puts it simply:

“The larger your deductible, the more out of your pocket, the less premium you pay.”

Understanding that balance helps you design a policy that matches your financial comfort zone—without unnecessary overpayment.

The Bottom Line: Clarity Beats “Full Coverage”

When it comes to insurance, clarity is more valuable than catchphrases. “Full coverage” is not a product—it’s a misunderstanding. What you really want is a policy that matches your risks, priorities, and financial comfort level.

To recap:

1. Be specific about what you want to insure.
2. Define which losses you want protection from.
3. Don’t assume your last policy was perfect.
4. Tell your agent what’s most important to you.
5. Decide how much risk you’re comfortable taking on.

By following these steps, you’ll not only avoid dangerous coverage gaps—you’ll build smarter, more efficient protection that truly fits your life.

Because in the end, “full coverage” isn’t about having everything—it’s about having exactly what you need.