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You’ll come across the term full coverage when comparing car insurance, although it refers to several types of coverage put together. However, not every policy labeled as full coverage has the same protection, and you still might need other coverage add-ons for the best coverage for you.
Full coverage refers to a car insurance policy that includes liability, collision and comprehensive coverage. By bundling these types of coverage, your policy provides one of the widest forms of protection in case of an accident. The term full coverage technically isn’t a type of coverage or insurance in itself.
However, some car insurance companies interpret full coverage differently. To avoid overpaying for insurance you don’t need, ask for a policy breakdown to understand what you’re paying for.
Full coverage typically refers to these three types of coverage:
You might be surprised to find that local insurers can offer the cheapest rates. Get multiple quotes to make sure you’re getting the best deal for your needs. The cheapest companies, based on our independent research.
Company | Average annual cost |
---|---|
Metropolitan | $704 |
Permanent General | $1,710 |
United | $1,716 |
Financial Independent | $1,717 |
Horace Mann | $1,726 |
Infinity | $1,733 |
Western General | $1,832 |
California Casualty | $1,844 |
Travelers | $1,849 |
State Farm | $1,882 |
Anchor General | $1,947 |
California Capital | $1,969 |
Encompass | $1,992 |
Mercury | $2,028 |
Progressive | $2,088 |
Metromile | $2,115 |
Pacific | $2,118 |
Kemper | $2,129 |
Geico | $2,193 |
Esurance | $2,235 |
Allstate | $2,261 |
Nationwide | $2,285 |
Full coverage car insurance typically costs $1,430 on average per year, but you often can find a cheaper full coverage policy by shopping around and qualifying for discounts. Expect to pay around $130 each year for comprehensive and $300 per year for collision coverage, plus $1,000 a year for liability coverage. For context, a liability-only policy might only cost $500 to $1,000 a year.
Because full coverage combines liability with comprehensive and collision coverage, it lands on the pricey side of car insurance premiums. Price hikes for full coverage are steep in states with risky driving conditions, heavy traffic or lots of cars on the road. Compare average rates in the most popular states.
State | Average annual cost for liability only | Average annual cost for full coverage |
---|---|---|
Arkansas | $578 | $1,449 |
California | $629 | $1,654 |
Florida | $1,253 | $2,355 |
Georgia | $727 | $1,523 |
Iowa | $309 | $968 |
Louisiana | $995 | $2,789 |
Maine | $431 | $961 |
Michigan | $2,696 | $3,986 |
New Hampshire | $495 | 1,041 |
New Jersey | $1,095 | $2,069 |
North Carolina | $527 | $1,027 |
Rhode Island | $977 | $2,017 |
Texas | $826 | $2,452 |
Full coverage doesn’t include these types of coverage that you may or may not consider important:
If you own an old car and you can deal with a stolen, damaged or totaled car out of pocket, you might get by with less car insurance coverage like liability only. The same goes if you don’t drive much or live in an area where theft and vandalism are rare.
On the other hand, if you own a new or expensive car, you might want full coverage to protect your investment. The question is all about how much risk you’re willing to take. Say you buy a $20,000 car in cash. Even if you have the cash to replace it, lowering your car insurance coverage is a risky move when full coverage costs a few hundred dollars a year.
You want to find the sweet spot between the coverage you need and what you can afford to pay in the worst-case scenario.
You might invest in full coverage car insurance if these situations apply to you:
It depends on how much risk you’re willing to take on. While full coverage insurance is expensive, it offers extensive protection. But it may not make sense to buy full coverage if:
Yes, your lender will require you to maintain full coverage insurance if you’re still paying off the loan. This well-rounded insurance policy covers the investment your lender or bank has made in your car.
After you’ve paid off your loan, you own the car outright and can choose to drop collision or comprehensive coverage. You’ll still need your state’s minimum required insurance.
It depends on the value of the car and your own finances. For example, if you bought a $1,000 car for local store runs, you might not want full coverage since the extra coverage plus your deductible probably costs more than the car is worth.
However, if you buy any car that you can’t afford to replace out of pocket, consider full coverage to foot the bill if your car gets totaled.
When comparing quotes for full coverage auto insurance, make sure you’re asking for the same coverage levels across all your quotes. This helps you compare apples to apples, finding the policy with the best benefits and price.
Be prepared for quotes with this info handy:
For car insurance shoppers, full coverage is a term that may cause confusion. What it encompasses varies by insurer, but typically it refers to policies that include liability, collision and comprehensive protection.
To figure out if full coverage is for you, consider your budget, car and driving style. It suits some people, but it’s not worth the cost for others.
Shop around and compare car insurance quotes to find the best coverage for you.
Compare car insurance companies near you.
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