The Myth of Full Coverage Car Insurance in California
“Full coverage” isn’t a type of car insurance. It’s an informal label, usually meaning liability plus collision and comprehensive, and it often leaves out the coverages that matter most when you’re hurt: uninsured/underinsured motorist coverage and medical payments. The California Department of Insurance says plainly that “there is no such thing as ‘full coverage.'” Here’s what a typical policy does and doesn’t pay for after a crash in California, and what to check on yours. If another driver’s lack of insurance has left you short after a crash, you can also talk to me about an uninsured motorist claim.
What California requires
California’s minimum liability coverage is $30,000 / $60,000 / $15,000. Since 1 January 2025, a policy must cover at least $30,000 for injury or death to one person, $60,000 for injury or death to more than one person, and $15,000 for property damage (DMV insurance requirements). Before 2025, the minimums were half that or less. They’re scheduled to rise again on 1 January 2035, to $50,000 / $100,000 / $25,000.
The DMV also notes that “comprehensive or collision insurance does not meet vehicle financial responsibility requirements.” Liability coverage is the legal minimum; everything else is optional.
What “full coverage” usually includes
When an agent or a website says “full coverage,” it usually means three things:
- Liability: pays for injuries and damage you cause to others, up to your limits. It doesn’t pay for your own injuries or those of people in your household.
- Collision: pays to repair your car after it hits another vehicle or an object, minus your deductible.
- Comprehensive: pays for damage from things like fire, theft, vandalism, windstorm, flood and falling objects, minus your deductible.
All three have limits and deductibles. If your losses go past those limits, the rest comes out of your pocket, or out of a lawsuit against whoever caused the crash.
What “full coverage” often leaves out
Uninsured and underinsured motorist coverage
This is the coverage that protects you when the other driver can’t pay. If you’re hurt by a driver with no insurance, or a driver whose limits are too low to cover your injuries, uninsured/underinsured motorist (UM/UIM) coverage on your own policy steps in.
California takes it seriously. Under Insurance Code section 11580.2, insurers must include uninsured motorist coverage in every auto liability policy unless you and the insurer agree in writing to delete it or reduce it. In California, uninsured coverage includes underinsured coverage. Check whether your policy has it.
How underinsured coverage works surprises people: a driver is “underinsured” only if their liability limit is lower than your UIM limit, and your UIM pays the difference after their insurer pays its full limit. If you carry the minimum $30,000 in UIM and the other driver carries $30,000 in liability, your UIM adds nothing. The higher your UM/UIM limits, the more protection you have. I explain how these claims work on my uninsured motorist page.
Uninsured motorist property damage is limited: it pays the lesser of your car’s actual cash value or $3,500, and only if the uninsured driver or their vehicle is identified.
Medical payments coverage
Med-pay pays medical bills for you and your passengers, regardless of fault. The California Department of Insurance describes it as coverage that “can pay for immediate medical care, no matter who is at fault.” California doesn’t require it, and many policies sold as “full coverage” don’t include it, or include only a small amount. It’s useful precisely because it pays quickly, while the claim against the at-fault driver is still being worked out.
Rental, towing and gap coverage
Rental car reimbursement and towing are optional endorsements. Gap coverage, which pays the difference between what you owe on a loan or lease and what your totalled car is worth, is also separate. None of them comes automatically with “full coverage.”
The California rule that hurts uninsured drivers
If you drive without insurance and get hit, you can lose part of your claim. Under Proposition 213 (Civil Code section 3333.4), the owner of an uninsured vehicle, or a driver who can’t show financial responsibility, can’t recover non-economic damages such as pain and suffering, even if the other driver was entirely at fault. They can still recover economic losses such as medical bills and lost wages. The same rule applies to a driver convicted of DUI for the crash.
If cost is the barrier, California’s Low Cost Auto Insurance program offers liability coverage that meets the state’s financial responsibility law for drivers who qualify by income.
What to check on your own policy
Pull out your declarations page (the summary page of your policy) and look for:
- Bodily injury liability limits. Are they above the $30,000 / $60,000 minimum?
- Uninsured/underinsured motorist limits. Do you have it at all? Does it match your liability limits?
- Medical payments. Is it there, and how much?
- Collision and comprehensive deductibles. Could you pay them tomorrow?
- Rental and towing. Are they listed?
If you’re unsure what changes would cost, ask your agent for a quote with higher UM/UIM limits. My post on how much car insurance goes up after an accident covers the other side of the premium question.
Full coverage FAQs
Is “full coverage” a real type of car insurance in California?
No. It’s an informal term, usually meaning liability plus collision and comprehensive. The California Department of Insurance says there’s no such thing as “full coverage.”
Does full coverage pay for my injuries if the other driver has no insurance?
Not unless your policy includes uninsured motorist coverage. California insurers must include it unless you waived it in writing, so check your declarations page.
What are California’s minimum car insurance limits?
$30,000 per person and $60,000 per accident for injuries, and $15,000 for property damage, for policies issued or renewed since 1 January 2025.
Can an uninsured driver sue for pain and suffering in California?
Generally no. Under Civil Code section 3333.4, an uninsured vehicle owner or driver can recover economic losses but not non-economic damages such as pain and suffering.
Talk to a Tustin car accident lawyer
I began my career defending insurance companies, so I know how policies are read when a claim comes in. If you were hurt by an uninsured or underinsured driver, or you’re not sure what your policy covers, call me at (714) 461-6003 or request a free consultation. You’ll work directly with me, and under my No Recovery, No Fee Guarantee you pay nothing unless I recover compensation for you. Learn more about uninsured motorist claims, see how car insurance companies handle accident claims, or read my checklist of what to do after a car accident in Tustin.