Full coverage typically refers to a combination of collision and comprehensive insurance coverages. Collision is used to repair your car after an accident in which you were at fault, and comprehensive coverage will pay for such things as a hit and run driver, vandalism, or the theft of the car. Dealerships often require full coverage to make sure the car, which is technically their property until it is paid for, is protected.
Once the car is paid off, you can elect to drop either the comprehensive coverage, the collision coverage, or both. Dropping them will considerably lower your insurance costs but keep in mind that the cost out of pocket if the vehicle was stolen or damaged would be enormous.
Many experts recommend that young drivers own a car that is paid for to avoid GAP insurance, collision and comprehensive coverages. By owning a less expensive car, young drivers can avoid many of the extra costs of insurance and keep their rates lower.
One benefit of comprehensive insurance is the replacement of glass. If a pebble is thrown up by the tires of the vehicle in front of you and breaks your windshield, comprehensive would pay for the repair minus your insurance deductible. Another example would be a total loss if the car were stolen as opposed to receive the depreciated value of the vehicle from the insurance company.
Whether you need full coverage is up to you. If you feel the car's value is higher than the depreciated value, then you may want to invest in comprehensive coverage. If you are taking excellent care of the car, collision coverage will help you get the car repaired if it is involved in an accident. Without full coverage, these things would be very expensive, but each driver has a different set of insurance objectives andmust make the decision based on their own needs.