Full-Coverage Car Insurance

Key Points:

• Generally speaking, full coverage includes your state’s minimum-liability coverages plus comprehensive and collision.
• Unless you have enough money set aside to cover the cost of repairing or replacing your car after an accident, full coverage is usually worth the cost.
• Car insurance costs are based on a number of factors, usually regarding a driver’s age, credit score, driving record and ZIP code.

When it comes to car insurance, the term “full coverage” simply means having a policy that includes both liability insurance as well as comprehensive and collision coverage.

Unlike state-minimum liability insurance, which only protects other drivers and damages to their vehicles or property, full coverage also protects your car. For this reason, if you’re leasing or financing, most lenders will require you to carry a full-coverage policy.

In this guide, we’ll explain how full-coverage auto insurance works, how it compares to minimum coverage, and what it costs on average. We’ll also recommend two of the best car insurance companies for full coverage.

What Is Full-Coverage Car Insurance?

A full-coverage car insurance policy usually combines liability insurance, collision insurance, and comprehensive insurance. Depending on the state, a full-coverage policy may also include uninsured motorist coverage, personal injury protection (PIP), or medical payments (MedPay) coverage.

Full coverage will typically handle the costs of any damage to your vehicle if you’re involved in an accident, as well as any injuries or damages you cause to other drivers and their property.

What Does Full-Coverage Car Insurance Include?

Here’s a table that outlines the types of coverage you may see in a full-coverage policy:

Type of Coverage	Coverage Details	Required by State Law
Bodily injury liability insurance	Covers medical bills for the other drivers and their passengers if you’re at fault for a car accident	Every state except New Hampshire
Property damage liability insurance	Covers repair costs for the other party’s vehicle or other property if you’re at fault for a car accident	Every state except New Hampshire
Collision insurance	Covers repair costs for your vehicle if you’re involved in a collision with another car or a stationary object, like a fence	Not required by law but may be required by a lender or the terms of a lease
Comprehensive insurance	Covers repair costs for your vehicle when it’s damaged by non-accident issues such as theft, vandalism, or a natural disaster	Not required by law but may be required by a lender or the terms of a lease
Uninsured motorist bodily injury coverage	Covers medical bills for you and your passengers after a collision with an uninsured driver	Required in 20 states and Washington, D.C.
Uninsured motorist property damage coverage	Covers repair costs for your vehicle or other property if you’re hit by an uninsured driver	Required in eight states and Washington, D.C.

Because full coverage always includes minimum liability coverage in your state, the following coverages may also be included. 

Type of Coverage	Coverage Details	Required by Law
Personal injury protection (PIP)	Covers your medical expenses, lost wages, funeral costs, and pain and suffering if you’re in an accident–regardless of who is at fault	Required in 12 states
Medical payments (MedPay)	Covers medical expenses for you and your passengers if you’re involved in an accident regardless of who is at fault	Required in Maine*

*MedPay is required in Pennsylvania for drivers who opt out of PIP. New Hampshire requires MedPay for any driver who chooses to carry auto insurance.

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Additional Types Of Auto Insurance

Most auto insurance companies offer additional coverages you can choose to add to your policy. Some of these coverages include:

• Gap insurance: If your car is totaled, gap insurance coverage will pay the difference between your car’s value and the amount you owe on your auto loan. This is also known as loan/lease insurance.
• New car replacement: If your new car is totaled, this coverage will replace it rather than just reimbursing you for the depreciated value.
• Rental car reimbursement: This helps pay rental car costs if your car is in the shop due to a covered claim.
• Roadside assistance: This service is typically available 24/7 and can provide tire changes, fuel deliveries, jump-starts, and more.
• Towing coverage: This service will take your car to a repair facility if it breaks down.

What Is Minimum Coverage?

Minimum coverage refers to the minimum insurance limits a state requires for someone to legally drive. To learn what’s required where you live, you can consult the website for your state’s insurance commission or department of motor vehicles (DMV). The only state that doesn’t require car insurance coverage is New Hampshire.

If you opt to only carry your state’s minimum coverage, you’ll have to pay out of your own pocket to repair or replace your vehicle if it’s damaged or totaled in an accident. Minimum liability insurance will only cover the cost of the other driver’s injuries or property damage if you cause an accident. 

Carrying only minimum coverage may seem like a good way to save money, but it could leave you in a rough financial spot if your car gets damaged or totaled. If you have full-coverage car insurance, your provider will pay for the cost of repairing or replacing your vehicle. 

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How Much Does Full-Coverage Auto Insurance Cost?

Based on our research, the average cost of full-coverage car insurance is $1,968 per year or $164 per month. We used a profile of a married 35-year-old driver with a clean driving record and good credit to find averages from some of the top insurance providers in the industry. On average, Auto-Owners, USAA, Geico and Travelers have the cheapest full-coverage auto insurance rates.

Car Insurance Company	Full-Coverage Monthly Cost Estimate	Full-Coverage Annual Cost Estimate
Auto-Owners Insurance	$117	$1,404
USAA	$123	$1,476
Geico	$131	$1,572
Travelers	$135	$1,615
Nationwide	$139	$1,674
Erie Insurance	$140	$1,680
State Farm	$140	$1,680
Progressive	$151	$1,809
Allstate	$210	$2,520

Factors That Affect Car Insurance Rates

As you shop for car insurance, keep in mind that rates aren’t the same for every driver or type of vehicle. To calculate your personalized quote, an insurer will consider the following factors:

• Location: If you live in a more populated area with higher rates of theft and car collisions, you’ll pay higher rates.
• Age: If you’re under 25 or over 55, your rates will be higher than average. Drivers in their 30s and 40s tend to pay the best rates.
• Driving record: Having speeding tickets, at-fault accidents, or DUIs in the last few years will make your coverage more expensive.
• Credit history: The lower your credit score, the higher your insurance rate.
• Marital status: Married drivers generally pay less for insurance than single drivers.
• Gender on license: Male drivers usually pay more for car insurance when they’re younger than 25 because they’re statistically more likely to get into accidents.
• Vehicle: Models that are more likely to be stolen or cost more to repair are more expensive to insure.

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Should I Carry Full-Coverage Car Insurance?: Our Take

Full-coverage car insurance can protect you from exorbitant expenses if you’re involved in an accident. Carrying only your state-minimum insurance will keep you from having to pay for the other driver’s damages in an accident you cause, but you’ll have to pay for your car’s repairs yourself.

If your car is totaled, you’ll be responsible for the cost of replacing it. We recommend that you carry full-coverage insurance if you can afford it and if your car is worth more than the cost of the policy and your deductible combined. This will give you extra protection and peace of mind.

Recommendations For Full-Coverage Auto Insurance

Our research team analyzed the top insurance providers to help you find the right coverage for your needs. Before you commit to an insurer, compare car insurance quotes from a few providers to find the best deal on coverage.

State Farm: Best Overall Provider

State Farm is the largest provider of car insurance in the country, thanks to its reliability and low-cost coverage options. The provider offers the six standard types of car insurance coverage, as well as a number of optional add-on coverages that you can choose to include for boosted protection.

In the J.D. Power 2024 U.S. Insurance Shopping Study^℠, State Farm ranked above the industry average in customer satisfaction for large insurers.

Read more: State Farm Insurance Review

Travelers: Best Coverage Options

Our in-depth review of the auto insurance industry found that on average, Travelers customers pay about 18 percent less than the national average for full-coverage insurance. The provider also has a wide array of optional add-on coverages, such as accident forgiveness, new car replacement coverage, and gap insurance.

Travelers holds an A rating from the Better Business Bureau (BBB), and its A++ financial strength rating from AM Best shows its ability to cover claims.

Read more: Travelers Insurance Review

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Full-Coverage Car Insurance: FAQ

Here are some frequently asked questions about full-coverage car insurance:

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How We Rate Auto Insurers

Our review team extensively researches auto insurance providers to deliver informed and unbiased assessments of leading companies. We evaluate several key rating factors that are important to consumers to determine which providers are the best in the industry:

• Reliability: It’s important that an auto insurer is able to meet its claims obligations. Companies with a strong financial strength rating from AM Best score best in this category. Established insurers with a long history of reliable service also receive positive marks.
• Availability: Insurance companies that offer wider availability to consumers in terms of state availability and few eligibility requirements are more likely to meet consumer needs.
• Coverage: To determine our coverage score, we look at the number of coverage options available as well as coverage limits and deductible options. Our ratings also take into account additional services and benefits like roadside assistance.
• Pricing: Cost can be difficult to compare between insurers because so many factors impact annual premiums. The cheapest insurer for one driver may not be the cheapest for another. To determine our cost score, we look at insurance rate estimates generated by Quadrant Information Services, discount opportunities, and consumer reports.
• Service: We comb through customer reviews on sites like the Better Business Bureau (BBB) to learn about customer experiences. Insurers with a low volume of complaints score well in this area. We also consider the claims process, giving higher ratings to car insurance providers that offer a smooth experience.
• Technology: Providers with an online quote tool, easy-to-use claims app and a usage-based insurance app score best in this category.

*Data accurate at time of publication.

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