What does full coverage really do?

I have deductible on a Honda Accord '99 (title loan used as collateral for a person loan)
And I have to have full coverage… But what does full coverage actually do? I mean I feel it's totally pointless and just a way to scam you off money

Does it cover stolen radio from the car?
Does it cover the paint?
Does it cover key lines?
Does it cover anything cosmetic to the car? If not, then what the heck is the point of having it?

All car insurance is a scam. I mean it sounds good in theory but these companies just milk you for every penny they can then find any excuse to not pay when they have to. Let's say you pay $150 a month for full auto. That's $3200 in 2 years. Way more than a 99 civic is worth to them and if you total it they'll give you like $1,000. That is of course IF they decide you deserve the money. Just get liability insurance and drive careful.

Full coverage means that in the event of an accident, insurance will cover your vehicle. If your vehicle is financed, the bank will require full coverage as a condition of the loan so they don't end up being owed money on a totaled car that basically no longer exists. If you don't have a loan, you can opt for liability coverage which only covers the vehicle of the person you hit. Liability is required by law on every vehicle.

Full coverage means
Liability coverage which is legally required
Comp/Collision covers damage to your vehicle from crash, fire, theft and yes vandalism but you do have to pay a deductible, that is to say that the first portion of those repairs, $500, $1000, $2000 are paid by the insured.

The point is that if the car is stolen or damaged, the coverage will repair the vehicle or pay for the loss, less the deductible.

Full coverage is really an undefined term. What you need is the coverage the lender required, which is typically that you add fire, theft and collision to the policy with no more than a $500 deductible, and name them as loss payee in the event of a total loss. You might want to consider GAP coverage also, that will cover the difference between fair market value and what you still owe in the event of total loss, otherwise you still pay for a car you no longer have.

Does it cover stolen radio from the car?
Does it cover the paint?
Does it cover key lines?
Does it cover anything cosmetic to the car?

In all those things, if you have the coverage, yes, but you pay the deductible of $500 first.

If not, then what the heck is the point of having it? Because your lender requires it to get the loan. If you want to just have minimum coverage, don't finance, pay cash.

The words "full coverage" mean you've got optional coverage in addition to the stuff that is required by law. The lender makes you buy that additional coverage as part of the loan agreement, because they want to protect their investment. Here's what 'full' coverage usually includes…

INCREASED LIABILITY: Every state / province has minimum liability limits, and they're sometimes pathetically low. You want at least $500,000 in liability coverage, if not a million or two. Because if you injure or kill someone in a crash, it's going to cost you that much in the lawsuit.

COLLISION: Covers your vehicle (and only your vehicle) for at-fault accidents, hit & run damage, impact by bicycle / shopping cart / pedestrian, and the vehicle suddenly flipping onto its roof for no reason at all. I've never seen that last thing happen, but Collision will cover it if it does.

COMPREHENSIVE: Covers your vehicle for damage by fire, theft, vandalism, hail, windstorm, falling / flying object, animal impact, lightning, and various other non-accident damage.

TRANSPORTATION REPLACEMENT: Also called loss of use, this covers the cost of a rental while your vehicle is in the shop because of a covered claim.

UNINSURED MOTORIST: Often required with liability, this covers you if you're injured in an accident but the other vehicle (it's their fault) has no insurance. Sometimes it will also cover damage to your vehicle, but that varies between states and provinces.

Lenders always want you to have 'full' coverage, because they know one thing. If you wrapped your vehicle around a tree and didn't have Collision coverage, would you really keep making payments for a car that's now a paperweight? Exactly, you'd tell them to come out with a shovel and repo it. Maybe you wouldn't, but a lot of people would. That's why they make it a condition of the loan.