Full Coverage Auto Insurance (2023)
Full coverage car insurance combines liability and other mandatory coverages with collision and comprehensive.
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Written by
Rachel Bodine |
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Reviewed by
Daniel Walker
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UPDATED: Dec 20, 2022
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: Dec 20, 2022
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
Full coverage car insurance may not mean what you think. While full coverage offers you the most protection, it doesn’t totally cover every situation. In addition, not everyone agrees on what the term “full coverage” means.
Most states require that drivers 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 only the minimum required coverage, it offers you more protection and means you pay less out of pocket in an accident.
Although 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.
Keep reading to learn more about full coverage car insurance, how much it costs, and whether or not you need it.
Table of Contents
What’s considered full coverage auto insurance?
Most states require drivers to carry at least liability auto insurance coverage, which protects others if they cause an accident. However, coverage for you and your vehicle isn’t usually required. That’s where full coverage comes into play.
As a driver, you’ve probably heard the term full coverage talked about a lot. But, the name can be misleading since it doesn’t cover every eventuality. Additionally, not everyone agrees on what the term means, so each car insurance company’s definition may differ.
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 are typically required.
| 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. |
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Many drivers opt for full coverage, which usually includes liability, collision insurance, comprehensive auto insurance, and any mandatory coverage like uninsured motorist coverage. Otherwise, you’ll have to pay for any damages to your vehicle.
Full coverage 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.
Keep in mind that full coverage still doesn’t cover everything. You’ll need to add coverages such as roadside assistance and rental car reimbursement so that your policy offers you all the necessary coverages.
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Liability vs. Full Coverage
Understanding the difference between liability and full coverage is the first step to determining which coverage meets your needs.
| Companies | Monthly Liability Insurance Rates | Monthly Full Coverage Insurance Rates |
|---|---|---|
| Allstate | $45 | $318 |
| American Family | $31 | $224 |
| Farmers | $40 | $288 |
| Geico | $25 | $179 |
| Liberty Mutual | $56 | $398 |
| Nationwide | $32 | $229 |
| Progressive | $40 | $283 |
| State Farm | $33 | $235 |
| Travelers | $40 | $287 |
| National Average | $36 | $260 |
Whether you need liability or full coverage car insurance depends on your circumstances. Keep reading to learn when you need full coverage and when you can choose liability-only coverage.
Do you need full coverage auto insurance?
We’ve already determined that full coverage comprises various coverages and offers you the most protection. 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 carrying 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 on a financed car? Most lenders require drivers to carry full coverage to protect their investment more thoroughly. In addition, you may need GAP coverage, 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 either 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 it to carry more expensive coverage. If you also have a $1,000 deductible, your car insurance company only pays for $1,000 of the damage.
It may be cheaper to pay for damages than the higher rates for full coverage if you have a healthy savings account.
How much is full coverage insurance?
Because 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 by yourself, which can be much more expensive in the long run.
This table shows average rates from top insurance companies based on coverage type.
| Insurance Company | Average Full Coverage Rates |
|---|---|
| Allstate | $160 |
| American Family | $117 |
| Farmers | $139 |
| Geico | $80 |
| Liberty Mutual | $173 |
| Nationwide | $115 |
| Progressive | $105 |
| State Farm | $86 |
| Travelers | $99 |
| Average | $120 |
Full coverage only costs about $30 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.
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How can you save money on your full coverage car insurance?
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 deductible to get lower car insurance 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 a variety of discounts, typically based on the driver, policy, and vehicle. Most drivers qualify for multiple discounts and can bundle them for the most savings.
For example, you may be eligible for a good driver, paid in full, and anti-theft device discounts. Since many discounts aren’t automatically added to your policy, be sure to ask which discounts apply to your policy.
Finally, shop around for full coverage car insurance. Every insurer offers different rates, so compare rates and discounts from multiple companies to find the best deal.
Remember that many factors affect your auto insurance rates, and 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 Car Insurance: The Bottom Line
Full coverage auto insurance typically combines liability, collision, comprehensive, and state-mandated coverage. Although 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 lower full coverage car insurance rates by raising your deductible and adding car insurance discounts. Then, you can get the coverage you want at a lower rate.
The best way to get cheap full coverage car insurance is to shop around. Compare quotes from multiple companies to find affordable coverage that meets your needs.
Frequently Asked Questions
What is full coverage insurance?
There is no definition for full coverage auto insurance. However, it typically includes multiple coverages, such as liability, collision, and comprehensive. In addition, other mandatory coverage, including uninsured motorist and medical payment coverages, may also 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.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
Secured with SHA-256 Encryption
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.
|
Written by
Rachel Bodine |
|
Reviewed by
Daniel Walker
|