Full coverage insurance DOES cover your car in case of an accident. It’s liability insurance plus physical damage coverage. Physical damage is a combination of comprehensive and collision coverage. In the event of a claim, it covers all vehicles involved as well as medical expenses and property damage. However, there is a deductible which must be met before the insurance company will take responsibility for the remaining portion of the claim. The deductible may be $250, $500, $1,000 or more.