I bought “full coverage” so everything’s paid for, including my rental car, right?

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A: There is no such thing as “full coverage.” In most states, liability insurance is mandatory – this covers the amount your liable to pay, up to the dollar limits you select when you buy a policy, for an accident in which there is damage or injury to other vehicles, property or people.

There are also optional physical damage coverages like comprehensive and collision; comprehensive generally covers weather-related damage (hail, etc.) as well as theft claims, while collision generally covers crashes you’re involved in with objects other than animals.

And then there are coverages like rental reimbursement which pays for the cost of a rental car if your personal car is in the shop as a result of an accident. Long and short: there are lots of coverage options out there.

It’s best to have a good understanding of what they are, what they cover and select the ones you want and need based on your personal situation.