"Full Coverage" Doesn't Mean What You Think It Means
"Full Coverage" Doesn't Mean What You Think It Means
Reading time: 6 minutes
Ask ten Arizona drivers if they have "full coverage," and most of them will say yes.
Ask those same ten drivers what "full coverage" actually includes, and the answers get much less clear.
Here's the truth: "full coverage" is not an insurance term. It's not a coverage level. It's not something you can buy off a menu. It's a phrase drivers use to feel protected, and it often doesn't reflect what's actually on their policy.
The good news is that most of the coverage gaps I run into are easy to fix once you know what to look for. But you have to actually look. Between my time in auto underwriting and now writing policies from the agency side, I've had a chance to see how these gaps hide in plain sight, and how simple they are to close.
Let me walk you through what a real Arizona auto policy actually includes, what the coverage does and doesn't do, and where most people are exposed without knowing it.
What "full coverage" usually means
When most people say "full coverage," they mean their policy includes three basic things:
1. Liability coverage (required by law)
2. Collision coverage (for damage to your own car in a crash)
3. Comprehensive coverage (for non-crash damage like theft, hail, or hitting an animal)
That's the standard bundle. It's a good starting point. But there are several other coverages that aren't included by default, and each one covers a scenario that most drivers assume is already protected.
Let me walk through the ones that catch Arizona drivers most often.
Gap 1: Your liability limits may be lower than you realize
Arizona law requires drivers to carry minimum liability coverage of 25/50/15. That means:
-$25,000 for bodily injury to one person
-$50,000 for bodily injury per accident (multiple people)
-$15,000 for property damage per accident
DIFI (the Arizona Department of Insurance and Financial Institutions) publishes this requirement directly. It's the legal floor.
Here's what's worth thinking about. The 25/50/15 minimum reflects the legal requirement, not necessarily the coverage level most drivers actually need. Vehicle values and medical costs have both risen substantially since these minimums were set. A newer truck or SUV in Arizona today typically costs well above the $15,000 property damage limit. Medical bills from a serious injury can add up quickly.
If you have real assets to protect (a home, savings, retirement accounts), the widely recommended baseline is 100/300/100. The good news is that raising your limits is usually one of the cheapest upgrades in your entire policy. Going from state minimums to 100/300/100 often costs less than $20 to $25 per month. That's a strong trade for meaningful protection.
Gap 2: You might have UM/UIM coverage, or you might have signed it away
This is one of the most important coverages on any Arizona auto policy, and it's also one of the most misunderstood.
According to the Insurance Research Council (IRC), 15.4% of drivers nationally were uninsured in 2023, the most recent year of complete data. When you add drivers who carry insurance but don't have enough coverage to pay for the damage they cause (underinsured drivers), the combined number jumps to one in three drivers on the road.
Arizona sits close to the national average, with roughly 11 to 12% of drivers estimated to be uninsured according to NAIC and IRC data.
Now, here's the part most drivers get wrong. In Arizona, UM/UIM coverage isn't quite "optional" the way most people describe it. Under Arizona Revised Statutes § 20-259.01, every insurer writing an auto policy in Arizona is required to offer UM and UIM coverage in writing, in limits at least equal to your liability limits. You can only reject that coverage in writing, on a form approved by the state.
That means one of two things is true about your policy right now:
1. You have UM/UIM coverage, or
2. You have a signed rejection form on file with your insurer.
If you're not sure which one applies to you, that's a conversation worth having. Sometimes people sign a stack of paperwork at policy inception and don't remember rejecting it. Sometimes the coverage was quietly reduced when the policy was rewritten. Either way, it's worth checking your declarations page to confirm what's actually there.
UM/UIM is one of the more affordable meaningful coverages you can add. At 100/300 limits, it typically runs somewhere between $8 and $30 per month depending on your rating factors. If it's not on your policy, adding it back is usually a straightforward process.
Gap 3: Medical payments coverage (MedPay)
MedPay is a small coverage that pays for medical bills for you and your passengers regardless of who caused the accident. Arizona doesn't require it, and it's not part of standard "full coverage."
The reason it matters: your health insurance may have high deductibles or copays, and MedPay fills that gap. It also covers you if you're injured as a pedestrian or a cyclist and struck by a vehicle.
Coverage of $5,000 to $10,000 in MedPay usually costs less than $5 per month. Small money, real protection.
Gap 4: Gap insurance if you financed or leased your vehicle
If you owe more on your car than it's worth (very common in the first two or three years of a loan, especially with newer vehicles that have depreciated quickly), you have what's called a "gap" between your car's value and your loan balance.
If your car gets totaled, your insurance pays the depreciated market value. Your lender still wants the full balance of the loan. That difference (the gap) is yours to cover unless you have gap insurance.
One thing worth knowing: dealerships often sell gap insurance at the point of sale, sometimes at a marked-up price. In many cases, adding it to your auto policy through your carrier is less expensive. However, not every auto carrier offers gap coverage as a product, so this is one of the specific things to ask about when you're comparing carriers or renewing your policy. If your current carrier doesn't offer it, you have three options: buy it through the dealer (often more expensive), buy standalone gap coverage from a third-party provider, or shop for a carrier that offers it as a policy add-on.
If you financed or leased in the last few years and don't have gap coverage anywhere, this is worth a five-minute conversation.
Gap 5: Rental reimbursement
If your car is in the shop for two weeks after an accident, someone has to pay for the rental car you'll need to get to work. That someone is you, unless your policy includes rental reimbursement.
Rental reimbursement usually costs $2 to $8 per month for coverage of $30 to $50 per day. The math on this one is straightforward: one accident where you need a rental for a week pays for years of the coverage.
Gap 6: Roadside assistance
Roadside coverage isn't dramatic, but it's cheap and useful. Flat tire, dead battery, lockout, needing a tow. Most policies offer it for $2 to $5 per month.
If you already have AAA, you don't need this. If you don't, it's usually worth adding.
What you should actually do
Here's the practical version.
Pull out your declarations page. That's the summary page of your policy that lists all your coverages and limits. Most people have this in an email from their carrier or in the glove box of their car.
Read it line by line. Look for these specific things:
-What are your liability limits? Are they where you want them to be?
-Do you have UM/UIM coverage, or did you sign a rejection at some point?
-Do you have MedPay?
-Do you have gap insurance if your car is financed or leased?
-Do you have rental reimbursement?
What are your deductibles for collision and comprehensive?
If you can't tell what your coverages are, that's a problem in itself. Insurance is one of the most expensive things most families pay for. You should know what you're buying.
Ask your agent to explain each line. If you don't have an agent who will do this with you, that's what Switchback exists for.
The bottom line
"Full coverage" is a comforting phrase, but it doesn't mean much. What matters is what's actually on your policy.
The good news is that most coverage gaps are inexpensive to fix. Adding UM/UIM (if it's been rejected), MedPay, or higher liability limits often costs less per month than a single lunch out. The value shows up when you actually need to use the coverage.
If you're in the East Valley and you'd like someone to walk through your current auto policy with you (line by line, no pressure, no sales pitch) I'm happy to do that. Bring your declarations page. I'll show you what you're paying for, what you might be missing, and whether we can build you something better through one of the 28+ carriers Switchback works with.
Because "full coverage" should mean you're actually covered.
Don't let the Fine Print Bandit fool you.
Steven White
Founder, Switchback Insurance
The local guide that knows the trail
480-916-7291
Steven@SwitchbackAZ.com
Gilbert, AZ 85296
Sources
Arizona Department of Insurance and Financial Institutions (DIFI). Automobile Insurance Consumer Information. Official DIFI resource page. https://difi.az.gov/consumer/automobile-insurance
Arizona Revised Statutes § 20-259.01. Motor vehicle liability policy; uninsured optional; underinsured optional. Arizona State Legislature. https://www.azleg.gov/ars/20/00259-01.htm
Insurance Research Council (IRC). Uninsured and Underinsured Motorists: 2017–2023 Report. Affiliated with The Institutes. Published February 2025. https://insurance-research.org/node/130
National Association of Insurance Commissioners (NAIC). Uninsured Motorists topic page. Updated 2025. https://content.naic.org/insurance-topics/uninsured-motorists