Finding Cheap Full Coverage Car Insurance

Understanding Full Coverage Car Insurance

Chances are you’ve heard about full coverage car insurance, but you might not be fully aware of what it actually covers or where you can find it. Here’s what you should know before deciding whether it’s right for you.

What is full coverage insurance?

Full coverage car insurance sounds great, but the term is a bit misleading. “Full coverage” generally refers to policies that include collision and comprehensive insurance — which actually cover very specific risks — in addition to liability insurance.

What does full coverage car insurance actually cover?

Many states mandate that drivers buy only a small amount of auto liability insurance. If you cause a crash, this coverage helps pay for the treatment of others’ injuries and repairs to their property. But liability insurance won’t pay to repair your vehicle, or cover incidents that don’t involve crashing into other vehicles or pedestrians. Collision and comprehensive insurance fill these gaps:

  • Collision coverage pays for repairs to your car if you cause a crash with another vehicle or run into an object, such as a tree or a telephone pole.
  • Comprehensive coverage pays to repair or replace your car if it’s stolen or damaged by a covered cause, such as an animal collision, weather, a falling object, fire or vandalism.

How much is full coverage car insurance?

Comprehensive and collision coverage give you much better insurance protection, but they also mean higher rates.

To get an idea of how much higher, NerdWallet sampled rates for liability-only policies and full coverage auto policies in three states: California, New Jersey and Ohio.

Here’s what we found:

StateMonthly premium (liability insurance only)Monthly premium (full coverage)Monthly cost to add full coverage
California
$42$90$48
New Jersey$105$156$51
Ohio$30$60$30

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The price of full coverage car insurance isn’t chump change. Adding it raises Ohio car insurance rates by $362 per year, and that was the most affordable state we tested. It raises New Jersey car insurance rates by $606.

However, just one comprehensive or collision claim can make the cost worth it. Replacing a stolen car or repairing your vehicle after a crash could mean paying thousands of dollars out of your own pocket if you don’t have the right insurance.

Costs for even better coverage

We also sampled rates across the country for drivers carrying full coverage plus uninsured and underinsured motorist insurance. Here’s how the states stack up:  

National ranking (least to most expensive)StateAverage annual rate
1Ohio$684
2North Carolina$701
3Maine$702
4Indiana$734
5Iowa$749
6Idaho$773
7Vermont$777
8Wisconsin$816
9North Dakota$833
10Minnesota$835
11
Washington$856
12Utah$864
13Pennsylvania$866
14South Dakota $891
15Virginia$895
16Montana$909
17Nebraska$914
18New Hampshire$919
19Kansas$935
20Tennessee$970
21West Virginia$972
22Illinois$991
23Georgia$1,010
24Massachusetts$1,013
25Oregon$1,018
26Arkansas$1,025
27Maryland$1,030
28Wyoming$1,032
29Missouri$1,066
30Hawaii$1,092
31Arizona$1,128
32New Mexico$1,154
33South Carolina$1,155
34Alabama$1,200
35Colorado$1,206
36Texas$1,207
37Nevada$1,233
38Alaska$1,245
39New York$1,268
40California$1,300
41Connecticut$1,323
42Mississippi$1,345
43Rhode Island$1,386
44Kentucky$1,434
45District of Columbia$1,438
46Oklahoma$1,462
47New Jersey$1,517
48Delaware$1,591
49Florida$2,207
50Michigan$2,375
51Louisiana$2,409

Where to buy full coverage car insurance

Full coverage is commonly available from any auto insurance company. Below, we looked at average prices from the four largest car insurance companies for a policy that includes liability, collision and comprehensive, uninsured motorists coverage and personal injury protection where required. Our analysis found Geico to be the cheapest option on average. (See full methodology below.)

Geico

AVERAGE QUOTE: $108 per month


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State Farm

AVERAGE QUOTE: $191 per month


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Progressive

AVERAGE QUOTE: $235 per month


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Allstate

AVERAGE QUOTE: $265 per month


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Who needs full coverage car insurance?

If you finance your vehicle, your lender might require you to buy full coverage. Aside from that, comprehensive and collision are optional, although some insurers don’t let you add one without the other.

Comprehensive and collision coverage are particularly sound investments if:

  • You have a new or expensive car.
  • 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.

On the other hand, the older your vehicle and the lower its value, the less benefit there is to having full coverage. Imagine it costs you $600 per year to add comprehensive and collision and you have a $1,000 deductible, which is the amount your insurer will subtract from a claim payment. If your car is only worth $2,000, the net value of a claim check would be $1,000 at most — so if you carry full coverage for more than a year, you won’t be able to get back more than you paid. Checking your car’s current value at the National Automobile Dealers Association‘s website can help you decide whether full coverage makes sense.

Even with full coverage, there are other policy options you might need. For example, uninsured motorist protection, towing and labor service, and medical payments insurance all provide coverage that collision and comprehensive won’t.

How will various policy changes affect your rates? You can get insurance quotes using NerdWallet’s tool and compare estimates to see for yourself.

To recap key questions and answers:

Full coverage car insurance
What is full coverage car insurance? “Full coverage” generally refers to policies that include collision and comprehensive insurance — which actually cover very specific risks — in addition to liability insurance.
Where can I buy full coverage car insurance? Full coverage is commonly available from any auto insurance company; Geico came out the cheapest in our study of rates.

 

Methodology

To calculate the cost of adding full coverage: NerdWallet averaged the three lowest rates for 30-year-old men and women in 10 ZIP codes and from the largest insurers in each of the states above. Drivers carried liability limits of 100/300/50 and had no accidents or violations on record. The minimum required amount of personal injury protection was added in New Jersey. To test for full coverage, we included collision and comprehensive with a $1,000 deductible.

For the average quotes from car insurance companies: NerdWallet averaged rates for 30-year-old men and women with no incidents on record across the 12 most populous states in the country in 10 ZIP codes per state and from the largest insurers in each state. Sample drivers had 100/300/50 liability insurance limits, 100/300 uninsured motorist coverage limits and collision and comprehensive with a $1,000 deductible. Where needed, minimum required amounts of personal injury protection were added.

For the state-by-state car insurance rankings: NerdWallet averaged the three cheapest rates for 30-year-old men and women with no incidents on record. Coverage limits were 100/300/50 liability insurance limits, 100/300 uninsured motorist coverage limits and collision and comprehensive with a $1,000 deductible. Where needed, other minimum state-required coverages were added.

We used a 2012 Toyota Camry in all cases, except the state-by-state average, for which we used a 2013 Toyota Camry.

Monthly rates may include “paid in full” discounts.

These are sample rates generated through Quadrant Information Services. Your own rates will be different.

 

Alex Glenn is a staff writer at NerdWallet, a personal finance site. Email: aglenn@nerdwallet.com.

This article was updated March 10, 2017