What is Full Coverage Car Insurance
What does full coverage car insurance cover?
Full coverage insurance covers most scenarios, including weather-related damage to your car, an at-fault accident, hitting an animal, or vandalism. It will even pay out the current value of your vehicle if it is stolen.
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Full coverage auto insurance may include the following:
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 20 states and Washington, D.C. |
Uninsured motorist property damage coverage | Repair costs after an accident with an uninsured driver. | Required on all policies in 7 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. |
Full coverage auto insurance, on the other hand, does not cover everything. Extras such as new-car replacement insurance, emergency roadside assistance, and custom parts and equipment coverage may need to be purchased separately.
How much is full coverage car insurance?
According to InsuredCircle analysis of average car insurance rates, the national average cost of full coverage auto insurance in 2021 is $1,592 per year, or about $133 per month for a 40-year-old good driver with good credit.
Liberty Mutual, despite being one of the largest insurers in the country, is not included in our analysis because it does not provide rate data.
Full coverage insurance vs. minimum rates by company
InsuredCircle compared rates for minimum and full coverage auto insurance policies in 2021 across the country. On average, we discovered that full coverage insurance costs more than twice as much as minimum coverage among the largest companies.
Company | Full | Minimum | Annual difference |
Geico | $1,268 | $380 | $888 |
State Farm | $1,491 | $550 | $941 |
Progressive | $1,562 | $577 | $985 |
Farmers | $1,830 | $656 | $1,174 |
Allstate | $2,381 | $759 | $1,622 |
USAA | $1,169 | $419 | $751 |
*USAA is available only to active military, veterans and their families. | |||
Who needs full coverage auto insurance
Full coverage automobile insurance is not required by law. Many states only require a minimal amount of car liability insurance. However, this does not cover your injuries or car repairs — only the damage or injuries you cause to others.
Purchasing full coverage auto insurance may be a wise investment if you meet the following criteria:
- You own a new or expensive automobile.
- You have a car loan or a lease.
- You frequently commute in congested areas.
- You live in an area with severe weather, high rates of car theft, or a high risk of animal collisions.
- If your car is wrecked or stolen, you cannot afford to repair or replace it.
Full coverage, on the other hand, may not be worth the cost for an older vehicle. Comprehensive and collision insurance only cover the cash value of your car at the time it is damaged or stolen. They also typically have an insurance deductible, which is the amount you are expected to pay out of pocket for repair or replacement.
Assume you pay $600 per year for comprehensive and collision coverage, with a $1,000 deductible. If your car is worth $1,500, your claim check will be no more than $1,000. This leaves you with $500, which is $100 less than the cost of the insurance. Checking the current value of your vehicle can help you decide whether full coverage is necessary.
Even if you have full coverage, you may require additional policy options. Uninsured motorist coverage, gap insurance, and medical payments insurance, for example, all pay for expenses that full coverage car insurance does not. If you're undecided, experiment with the coverage options you see when looking for car insurance quotes online.
Full coverage auto insurance rates in each state
Prices vary even more from one state to the next. Annual average rates for minimum and full coverage car insurance in each state are shown below.
State | Full coverage | Minimum coverage | Annual difference |
Alabama | $1,501 | $474 | $1,027 |
Alaska | $1,521 | $417 | $1,104 |
Arizona | $1,536 | $567 | $968 |
Arkansas | $1,883 | $495 | $1,388 |
California | $1,911 | $617 | $1,294 |
Colorado | $2,012 | $528 | $1,484 |
Connecticut | $1,791 | $841 | $950 |
Delaware | $1,733 | $823 | $910 |
Florida | $2,321 | $685 | $1,636 |
Georgia | $1,820 | $757 | $1,063 |
Hawaii | $1,049 | $326 | $723 |
Idaho | $998 | $320 | $678 |
Illinois | $1,397 | $468 | $929 |
Indiana | $1,179 | $383 | $796 |
Iowa | $1,151 | $255 | $896 |
Kansas | $1,600 | $464 | $1,136 |
Kentucky | $2,363 | $790 | $1,574 |
Louisiana | $2,762 | $895 | $1,867 |
Maine | $963 | $372 | $591 |
Maryland | $1,872 | $860 | $1,011 |
Massachusetts | $1,100 | $431 | $669 |
Michigan | $2,387 | $1,128 | $1,259 |
Minnesota | $1,418 | $559 | $859 |
Mississippi | $1,636 | $498 | $1,138 |
Missouri | $1,526 | $484 | $1,043 |
Montana | $1,726 | $362 | $1,364 |
Nebraska | $1,376 | $365 | $1,010 |
Nevada | $2,161 | $839 | $1,322 |
New Hampshire | $1,169 | $429 | $740 |
New Jersey | $1,860 | $851 | $1,009 |
New Mexico | $1,418 | $390 | $1,028 |
New York | $2,131 | $1,070 | $1,061 |
North Carolina | $1,212 | $410 | $801 |
North Dakota | $1,195 | $352 | $843 |
Ohio | $989 | $351 | $638 |
Oklahoma | $1,748 | $451 | $1,297 |
Oregon | $1,358 | $670 | $688 |
Pennsylvania | $1,406 | $431 | $974 |
Rhode Island | $2,043 | $842 | $1,201 |
South Carolina | $1,652 | $606 | $1,046 |
South Dakota | $1,455 | $301 | $1,154 |
Tennessee | $1,298 | $400 | $898 |
Texas | $1,610 | $560 | $1,050 |
Utah | $1,390 | $577 | $813 |
Vermont | $1,123 | $338 | $785 |
Virginia | $1,248 | $478 | $771 |
Washington | $1,234 | $457 | $777 |
Washington, D.C. | $1,880 | $736 | $1,144 |
West Virginia | $1,605 | $517 | $1,088 |
Wisconsin | $1,160 | $361 | $799 |
Wyoming | $1,369 | $335 | $1,035 |
These benchmark rates can help you know what to expect, but in order to get the best rates, you should compare car insurance quotes.
How to save on full coverage car insurance
Shop around. It is critical to shop around for low-cost full-coverage insurance. Compare rates from at least three different companies to find the best deal for you.
Look for discounts. Car insurance discounts are available for everything from good grades to owning a new car. To maximize your savings, call your agent and confirm what is being offered.
Increase your deductible if possible. Raising your deductible, or the amount you pay before insurance kicks in, is one way to reduce your car insurance bill. This will reduce the overall cost of your policy, though savings will vary depending on the company.
Avoid traffic infractions. Even after a single incident, speeding tickets, accidents, and DUIs can significantly raise your car insurance rates. These infractions can stay on your record for three to five years, so drive carefully if you want the best rates.
Improve your credit score. Your credit history can have a significant impact on the cost of your auto insurance. In fact, according to our rates analysis, having bad credit can raise your rates as much as a DUI for some drivers.
What is Full Coverage Car Insurance