What Is Full Coverage Car Insurance?
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Full coverage car insurance is a combination of comprehensive, collision and liability coverage.
It provides coverage for most scenarios, including damage to your car from the weather, an at-fault accident, hitting an animal or vandalism.
You may want or need full coverage insurance if you have a new car, live in a place with extreme weather conditions or have an auto loan or lease.
Full coverage car insurance is a combination of comprehensive, collision and liability coverage.
It provides coverage for most scenarios, including damage to your car from the weather, an at-fault accident, hitting an animal or vandalism.
You may want or need full coverage insurance if you have a new car, live in a place with extreme weather conditions or have an auto loan or lease.
Full coverage car insurance is a term that refers to a combination of coverage types that can protect your car in most situations. Even though you’ve probably heard of full coverage insurance, there’s no such thing as a “full coverage policy.”
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Full coverage car insurance definition |
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Full coverage insurance typically combines collision and comprehensive insurance, which pays out if your vehicle is damaged, plus liability coverage, which pays for injuries and damage you cause to others. |
But this extra protection comes at a cost. Since it covers more situations, full coverage insurance is pricier than liability coverage alone, which only pays for injuries and damage you cause to others. To find cheap full coverage insurance, it’s important to shop around for the best rates.
What does full coverage car insurance cover?
Full coverage insurance provides coverage for most scenarios, including damage to your car from the weather, an at-fault accident, hitting an animal or vandalism. It will even pay out the current value of your car if your vehicle is stolen.
Full coverage auto insurance may include:
Coverage type | What it pays for | Required? |
|---|---|---|
Bodily injury liability | Medical costs due to injuries or deaths from an accident you caused. | Typically required. |
Property damage liability | Repair costs for property you damaged in an accident. | Often required. |
Uninsured motorist bodily injury liability | Medical costs after an accident with an uninsured driver. | Required on all policies in 9 states and Washington, D.C. |
Uninsured motorist property damage coverage | Repair costs after an accident with an uninsured driver. | Required on all policies in 3 states and Washington, D.C. |
Collision coverage | Repair costs to your car if you crash with another vehicle or run into an object, such as a tree or a telephone pole. | A car loan or lease may require it. |
Comprehensive coverage | Repair costs from events outside your control — including weather, hitting an animal while driving, theft and vandalism. | A car loan or lease may require it. |
But full coverage auto insurance doesn’t cover everything. If you want extras like new-car replacement insurance, emergency roadside assistance or custom parts and equipment coverage, you may need to add them separately.
How much is full coverage car insurance?
The national average cost of full coverage auto insurance is $2,148 per year or about $179 a month for a 35-year-old good driver with good credit, according to NerdWallet’s analysis of average car insurance rates.
» MORE: Compare car insurance rates
Full coverage insurance vs. minimum rates by company
NerdWallet compared rates for minimum and full coverage auto policies across the country. Among the largest companies, we found that full coverage insurance costs more than three times as much as minimum coverage, on average.
Company | Full coverage | Minimum coverage | Annual difference |
|---|---|---|---|
$3,110 | $933 | $2,176 | |
$1,547 | $774 | $773 | |
$2,807 | $939 | $1,868 | |
$2,009 | $603 | $1,406 | |
$2,016 | $673 | $1,343 | |
$2,075 | $744 | $1,330 | |
$1,431 | $450 | $981 | |
$1,751 | $568 | $1,182 | |
$1,120 | $341 | $778 | |
*USAA is only available to military, veterans and their families. | |||
» MORE: Cheapest car insurance companies
See what you could save on car insurance
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Who needs full coverage auto insurance
Buying full coverage auto insurance may be a sound investment if:
You have a new or expensive car.
You have an auto loan or lease.
You regularly commute in heavy traffic.
You live in a place with extreme weather, high car theft rates or a high risk of animal collisions.
You can’t afford to repair or replace your car if it’s wrecked or stolen.
Full coverage car insurance isn’t required by law. Many states mandate only a small amount of auto liability insurance. But that won’t cover your injuries or car repairs — only damage or injuries you cause others.
If you have an auto loan or lease, your lender likely requires you to buy collision and comprehensive coverage. The vast majority of companies offer these policies, but some insurers don’t let you purchase one without the other.
For an older vehicle, however, full coverage may not be worth the cost. Comprehensive and collision insurance reimburse you only up to the value of your car at the time it’s damaged or stolen. And they usually have an insurance deductible, an amount you’re expected to pay out of pocket toward repair or replacement. That's why you should always make sure you can afford to pay the deductible before you make a claim.
For example, let's say you have a car worth $1,500. You have comprehensive and collision insurance, which costs $600 per year, with a $1,000 deductible.
If you get into a car accident and total your car, you'll get a $500 check (your car's value minus your deductible) at most from your insurer. In this case, you're left with $500, which is $100 less than what you paid for the coverage. Note: Although full coverage insurance doesn't make sense here, you'll still need to buy minimum coverage to legally drive.
Not sure if you need full coverage insurance? Checking your car’s current value can help you decide whether full coverage makes sense.
Even with full coverage, there are other policy options you might need. For example, roadside assistance, gap insurance and medical payments insurance all pay for expenses full coverage car insurance won’t. If you’re on the fence, play with the coverage options you see online when shopping for car insurance quotes.
Full coverage auto insurance rates in each state
Prices vary even more by state. Compare annual average rates below for minimum and full coverage car insurance in each state.
State | Full | Minimum | Annual difference |
|---|---|---|---|
$2,269 | $681 | $1,588 | |
$1,955 | $475 | $1,480 | |
$2,155 | $711 | $1,443 | |
$2,160 | $569 | $1,591 | |
$1,659 | $506 | $1,153 | |
$2,698 | $636 | $2,062 | |
$2,604 | $1,070 | $1,533 | |
$2,601 | $1,031 | $1,570 | |
$3,605 | $1,006 | $2,599 | |
$2,509 | $845 | $1,664 | |
$1,631 | $492 | $1,138 | |
$1,349 | $408 | $941 | |
$1,747 | $554 | $1,193 | |
$1,433 | $463 | $970 | |
$1,596 | $328 | $1,268 | |
$2,290 | $631 | $1,659 | |
$3,357 | $1,073 | $2,284 | |
$3,399 | $1,063 | $2,336 | |
$1,323 | $483 | $840 | |
$2,998 | $1,136 | $1,862 | |
$1,394 | $480 | $913 | |
$3,229 | $1,103 | $2,126 | |
$1,931 | $701 | $1,229 | |
$1,950 | $563 | $1,386 | |
$2,706 | $738 | $1,968 | |
$2,831 | $534 | $2,297 | |
$1,788 | $422 | $1,366 | |
$3,058 | $1,147 | $1,911 | |
$1,557 | $494 | $1,063 | |
$2,809 | $1,146 | $1,664 | |
$2,127 | $576 | $1,551 | |
$2,600 | $1,180 | $1,420 | |
$1,487 | $565 | $922 | |
$1,869 | $513 | $1,356 | |
$1,423 | $502 | $921 | |
$2,438 | $589 | $1,849 | |
$1,888 | $905 | $983 | |
$2,266 | $544 | $1,722 | |
$3,300 | $1,272 | $2,028 | |
$2,715 | $965 | $1,751 | |
$1,593 | $318 | $1,275 | |
$1,997 | $554 | $1,443 | |
$2,398 | $774 | $1,624 | |
$2,240 | $855 | $1,385 | |
$1,376 | $361 | $1,015 | |
$1,922 | $682 | $1,240 | |
$1,759 | $617 | $1,142 | |
$2,260 | $819 | $1,441 | |
$2,075 | $616 | $1,459 | |
$1,683 | $465 | $1,218 | |
$1,553 | $289 | $1,264 |
These benchmark rates can help you know what to expect, but to get the best rates possible, you’ll want to compare car insurance quotes.
See what you could save on car insurance
Easily compare personalized rates to see how much switching car insurance could save you.
How to save on full coverage car insurance
Shop around. To find cheap full coverage insurance, it’s important to shop around. Compare rates with at least three companies to find the cheapest rate for you.
Look for discounts. There are car insurance discounts for everything from getting good grades to owning a new car. Call your agent to confirm what’s offered to maximize your savings.
Consider increasing your deductible. One way to lower your car insurance bill is by raising the deductible, or what you pay before insurance kicks in. Doing this will lower the overall cost of your policy, although savings vary by company.
Avoid traffic infractions. Speeding tickets, accidents and DUIs can increase your car insurance rates drastically, even after one incident. These infractions can stay on your record for three to five years, so make sure to drive cautiously if you want the cheapest rates.
Work on your credit. Although it isn’t always easy to build your credit, it can have a big impact on your auto insurance bill. In fact, our rates analysis found having poor credit can increase your rates more than a recent DUI for some drivers. California, Hawaii, Massachusetts and Michigan are exceptions, as these states don’t allow insurers to use credit when determining car insurance rates.
» MORE: How to build credit
NerdWallet averaged rates based on public filings obtained by pricing analytics company Quadrant Information Services. We examined rates for 35-year-old men and women for all ZIP codes in all 50 states and Washington, D.C. Although it’s one of the largest insurers in the country, Liberty Mutual is not included in our rates analysis due to a lack of publicly available information. Poor credit rates from The Hanover were removed in both Connecticut and New York.
In our analysis, “good drivers” had no moving violations on record; a “good driving” discount was included for this profile. Our “good” and “poor” credit rates are based on credit score approximations and do not account for proprietary scoring criteria used by insurance providers. These are average rates, and your rate will vary based on your personal details, state and insurance provider.
Sample drivers had the minimum required coverage by law in each state. Some policies include additional coverage at the insurer’s discretion.
We used a 2020 Toyota Camry L for all drivers and assumed 12,000 annual miles driven.
