What is full coverage auto insurance?
If you're just starting your auto insurance shopping journey and looking to understand your options, we will take care of answering, "What is full coverage auto insurance?" We explain what full coverage does and doesn't include, when full coverage is worth it, and how to reduce the average full coverage insurance cost of $260 a month.
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Daniel Walker
Licensed Auto Insurance Agent
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Licensed Auto Insurance Agent
UPDATED: Oct 2, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Oct 2, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Full coverage car insurance typically combines liability, collision, comprehensive, and any other mandated coverage
- Other coverage may be included, such as uninsured motorist, medical payments, and personal injury protection
- Full coverage may be required if you have a car loan or lease
What does full coverage mean? Full coverage auto insurance may not mean what you think. While full coverage offers you the most protection, it doesn’t totally cover every situation.
Most states have car insurance requirements that mandate drivers to carry a minimum amount of auto insurance coverage, but it typically only protects the other driver if you cause an accident. In addition, minimum coverage doesn’t cover you and your vehicle.
While full coverage auto insurance is more expensive than the minimum required coverage, it offers you more protection and means you pay less out of pocket in an accident.
While no state requires full coverage insurance, your lender may if you have a loan or lease. However, drivers with older, inexpensive vehicles or those who can pay for repairs or a replacement vehicle out of pocket may not need full coverage.
Read on to learn exactly what is full coverage auto insurance, compare cheap full coverage auto insurance rates, and find out what it includes.
Full Coverage Auto Insurance Definition
Most states require drivers to carry at least liability auto insurance coverage, which protects others if they cause an accident. However, you must carry full coverage auto insurance to protect you and your vehicle.
The term full coverage gets used often when referring to auto insurance, but the name can be misleading since it doesn’t cover every possible scenario. In addition, not everyone agrees on the term’s meaning. So, each company’s definition of full coverage auto insurance may differ.
What is considered full coverage auto insurance? Full coverage isn’t one coverage to add to your policy. Instead, it includes several types of auto insurance coverage. This table lists auto insurance coverages and if they’re typically required:
Full Coverage Auto Insurance Coverage Options Explained
| Coverage Considerations | Description |
|---|---|
| Liability | Most states require a set amount of liability coverage that protects other drivers in the case of an accident |
| Comprehensive | This coverage is typically required by your lender or leaseholder. If you own your vehicle outright, this is optional. It will pay for damage from non-accident-related events such as hail, vandalism, and theft. |
| Collision | This provides financial protection for your vehicle. It will pay for damages after a crash. |
| Personal Injury Protection (PIP) | This coverage will pay for your own medical costs, including lost wages. |
| Medical Payments (MedPay) | Similar to PIP, MedPay covers injury costs but doesn't cover lost wages as PIP does. |
| Uninsured/Underinsured Motorist Protection | Insurance companies are required to offer this coverage to you, and it will pay for your own damages beyond what another's liability covers when they're responsible for an accident. |
| Guaranteed Auto Protection (GAP) | You may owe more on your vehicle than it's worth because of how quickly cars depreciate. This coverage will pay the difference between the value and what you owe if your vehicle is totaled. |
| Personal Umbrella Policy (PUP) | This option provides an "umbrella" of coverage over several types of insurance. |
| Rental Reimbursement | If your car is a total loss or needs repair, do you have another vehicle you can drive? If you need a rental, you should consider this option. |
| Emergency Roadside Assistance | You can purchase this option from your insurer or a driving club. |
| Pay-As-You-Drive or Usage-Based Insurance | This isn't a good choice for everyone, but if you drive very few miles, it might be cheaper for you to purchase this kind of coverage. |
| Non-Owner Car Insurance | This option is for people who do not own a car but borrow one occasionally. |
| Modified Car Insurance Coverage | If you've made modifications to your vehicle, your regular full coverage won't take those changes into consideration when paying for damages. Adding special coverage for those modifications will protect them. |
| Windshield Coverage | Windshield coverage will help you pay for the replacement of your broken glass (check state laws for specifics) |
| Mechanical Breakdown Insurance | This coverage is similar to a manufacturer's extended warranty, and you should weigh the benefits of both a warranty and breakdown insurance to see which is best for you. |
Many drivers opt for full coverage, including liability, collision auto insurance, comprehensive auto insurance, and any mandatory coverage like uninsured (UM) motorist coverage. Otherwise, you’ll have to pay for any damages to your vehicle.
Full coverage insurance pays for damages to your vehicle from an accident or other causes, such as fire, theft, vandalism, and acts of nature, like hail, tornados, and floods. Liability-only insurance doesn’t cover any damage to your car.
For example, if you only have minimum coverage and a tree falls on your car, you’ll have to pay to repair or replace your vehicle. However, if you have full coverage, your comprehensive coverage kicks in. So, it’s important to understand the difference between liability vs. full coverage to determine your coverage needs.
Keep in mind that full coverage still doesn’t include coverage for every scenario. You’ll need add-ons such as roadside assistance coverage and rental car reimbursement coverage so that your policy offers you all the necessary coverages.
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Liability vs. Full Coverage Auto Insurance
Understanding liability vs. full coverage is the first step to determining which coverage meets your needs.
Full Coverage vs. Liability-Only Auto Insurance Monthly Rates
| Insurance Company | Liability Only | Full Coverage |
|---|---|---|
| Allstate | $45 | $318 |
| American Family | $31 | $224 |
| Auto-Owners | $33 | $87 |
| Farmers | $40 | $288 |
| Geico | $25 | $179 |
| Liberty Mutual | $56 | $398 |
| Nationwide | $32 | $229 |
| Progressive | $40 | $283 |
| State Farm | $33 | $235 |
| Travelers | $40 | $287 |
| USAA | $23 | $161 |
| U.S. Average | $36 | $260 |
As you can see, there’s quite a difference in rates between liability-only auto insurance and full coverage auto insurance. Only Geico and USAA offer monthly rates below $200.
Read more:
Whether you need liability vs. full coverage car insurance depends on your circumstances. Keep reading to understand what full coverage auto insurance includes and compare affordable full coverage insurance costs.
When to Get Full Coverage Auto Insurance
We’ve already determined that full coverage comprises various coverages and protects you the most. However, not everyone needs the same amount of coverage. Some drivers may opt to carry minimum coverage and pay for damages themselves.
So, how do you know if you need full coverage? Of course, every driver’s needs are different, but you’ll need full coverage if you have a car loan or lease or don’t have enough money to repair your car yourself.
Consider full coverage car insurance if you:
- Drive an expensive vehicle
- Live in a high-crime area
- Live in an area with severe weather events such as hurricanes
- Commute in a high-traffic area
- Can’t afford to pay for repairs or a replacement car yourself
- Have a car loan or lease
Do I need full coverage insurance to finance a car? Most lenders require drivers to carry full coverage to protect their investment more thoroughly. In addition, you may need gap insurance, which pays the difference between what you owe and what your vehicle is worth.
So, when should I switch to liability-only car insurance? Drivers with an inexpensive car or who have enough savings to cover repairs or replacements may consider liability-only coverage.
For example, if your vehicle is only worth $2,000, it might not be worth carrying more expensive coverage. If you also have a $1,000 deductible, your car insurance company only pays for $1,000 of the damage.
If you have a healthy savings account, it may be cheaper to pay for damages than the higher rates for full coverage.
Read more: When should I drop my full coverage auto insurance?
Full Coverage Auto Insurance Cost
Since full coverage offers more protection, rates are higher. The car insurance company stands a much higher chance of paying a claim with additional coverages.
Is liability cheaper than full coverage? Yes, but remember that you’ll have to pay for car repairs out of pocket, which can be much more expensive in the long run.
This table shows average rates from top insurance companies based on coverage type.
Full Coverage Auto Insurance Rates From Top Providers
| Insurance Company | Monthly Rates |
|---|---|
| Allstate | $160 |
| American Family | $117 |
| Auto-Owners | $33 |
| Farmers | $87 |
| Geico | $80 |
| Liberty Mutual | $174 |
| Nationwide | $115 |
| Progressive | $105 |
| State Farm | $86 |
| Travelers | $99 |
| USAA | $59 |
| U.S. Average | $119 |
Full coverage costs about $224 a month more than liability coverage. Considering that you won’t be left paying out of pocket for your vehicle’s damages, many drivers feel the higher rates are well worth it.
However, your rates depend on factors such as age, gender, and driving record, so compare cheap full coverage insurance quotes from the best companies to get the most affordable premiums.
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How to Save on Full Coverage Auto Insurance Costs
Fortunately, there are several ways to lower full coverage car insurance rates. That way, you get the coverage you want without the increased costs.
First, raise your auto insurance deductible to get lower full coverage rates. The deductible is the amount of money you pay before your insurance kicks in. So while you have to pay more out of pocket with a higher deductible, your overall rates are lower.
Next, take advantage of auto insurance discounts. Every insurance company offers various discounts, typically based on the driver, policy, and vehicle. Most drivers qualify for multiple discounts and can bundle them for the most savings.
Having your auto insurance and your home insurance with the same provider, called bundling, can slash up to 20% off of your auto insurance rate.Scott W. Johnson Licensed Insurance Agent
For example, you may be eligible for a good driver, paid in full, or an anti-theft auto insurance discount. Since many discounts don’t automatically apply to your policy, ask which discounts you can get.
Finally, shop around for full coverage car insurance. Every insurer offers different rates, so compare full coverage car insurance rates and discounts from the top auto insurance companies to find the best deal.
Remember the many factors that affect auto insurance rates, and how each company looks at them differently. So shop around to find an insurer with low rates, numerous discounts, and who looks at your personal factors favorably.
Full Coverage Auto Insurance Protects You and Your Car
Now you know what is considered full coverage auto insurance, in that it typically combines liability, collision, comprehensive, and state-mandated coverage. While full coverage rates are higher, it offers the most protection for you and your car.
Drivers with a car loan or lease may be required to carry full coverage by the lender. However, drivers with inexpensive cars or who can afford to pay for repairs themselves may skip full coverage.
You can get cheap full coverage car insurance rates by raising your deductible and adding car insurance discounts.
Another great way to find affordable full coverage auto insurance is to shop around. Compare full coverage car insurance quotes from multiple companies to find affordable coverage that meets your needs.
Frequently Asked Questions
What does full coverage cost?
Full coverage auto insurance costs $260 monthly on average.
What does full coverage auto insurance include?
There is no definition for full coverage auto insurance. However, it typically consists of multiple coverages, including liability, collision, and comprehensive. In addition, other mandatory coverage, such as uninsured motorist and medical payment coverages, might be included.
Since each state determines what coverages are required, full coverage varies. For example, one state may require personal injury protection while another doesn’t.
What doesn’t full coverage auto insurance include?
Full coverage typically doesn’t include add-ons, like roadside assistance, gap coverage, accident forgiveness, and rental car reimbursement. In addition, while you can add various additional coverages, full coverage generally doesn’t include them.
Is full coverage worth it?
Whether full coverage is worth it depends on your situation. For example, if you have a car loan or lease, you probably don’t have a choice since most lenders require full coverage. However, if you can afford to pay for repairs to your vehicle out of pocket, you may choose liability-only coverage.
Full coverage is an excellent option for drivers who own expensive vehicles, live in areas where their car is likely to be damaged, and can’t afford to pay for repairs themselves.
What factors affect my full coverage auto insurance cost?
Full coverage auto insurance quotes get impacted by age, gender, insurance company, coverage options, driving record, and much more.
What are the pros of full coverage auto insurance?
- Enhanced protection: Full coverage offers a comprehensive range of protections for your vehicle and other parties involved in an accident.
- Peace of mind: With full coverage, you have financial protection against a wide range of risks, reducing your worries about potential losses.
- Vehicle replacement: In the event of a total loss, full coverage can help cover the cost of replacing your vehicle.
What are the cons of full coverage auto insurance?
- Higher premiums: Full coverage policies generally have higher premiums compared to basic liability insurance due to the increased level of protection.
- Deductibles: You may be required to pay a deductible before your full coverage auto insurance kicks in, which can be a significant out-of-pocket expense.
- Age and value limitations: Full coverage may not be cost-effective for older vehicles or those with low market value, as the cost of coverage may exceed the potential payout.
Is full coverage auto insurance mandatory?
No state laws require full coverage auto insurance. However, if you have a lease or loan on your vehicle, the lender or leasing company may require you to carry full coverage until the lease or loan is paid off.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Daniel Walker
Licensed Auto Insurance Agent
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Licensed Auto Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.