Never ask for full coverage insurance

What this episode covers

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: 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. Policy terms evolve. Insurance carriers adjust ...

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