Key points
- Full-coverage car insurance refers to a collection of coverages, including liability, collision and comprehensive car insurance.
- Contrary to popular belief, full coverage car insurance doesn’t cover every type of incident involving your vehicle.
- Shopping around and comparing insurers, policies and rates can help you find the best full coverage policy for your needs.
What is full coverage car insurance?
Full coverage car insurance is not a specific type of policy. Instead, it’s a collection of coverages that generally include:
- Liability insurance. Covers medical and property damage costs (up to your policy limits) incurred by another driver, their passengers and pedestrians if you’re at fault for an accident.
- Collision insurance. Covers the cost to repair or replace your vehicle if it is damaged in a collision, regardless of who is at fault.
- Comprehensive insurance. Covers the cost of repairs or a replacement if your car is stolen or damaged by a non-collision event, such as flooding, fire, vandalism or a falling tree.
In addition to the coverages listed above, a full coverage car insurance policy can include any other coverages required in your state, such as uninsured/underinsured motorist insurance, personal injury protection (PIP) or medical payments coverage (MedPay).
What does full coverage car insurance cover?
Full coverage car insurance provides financial protection in several circ*mstances, with each type of coverage applicable to specific situations. Here are some examples of what a full coverage car insurance policy will cover and the type of claim you would file.
| REASON FOR CLAIM | TYPE OF CLAIM |
|---|---|
Damage to another person’s vehicle or property, such as a fence, after an accident for which you’re at fault. | Liability insurance |
Medical expenses incurred by another driver, their passenger(s) or a pedestrian after an accident for which you’re at fault. | Liability insurance |
Damage to your vehicle after an accident, regardless of who is at fault. (Note that if another insured driver is at fault for the accident, their liability insurance will cover damages to your vehicle.) | Collision insurance |
Damage to your vehicle caused by a non-collision event, such as a falling tree, fire, flooding or vandalism. | Comprehensive insurance |
Theft of your vehicle. | Comprehensive insurance |
What is not covered by full coverage car insurance?
Despite the name, full coverage car insurance does not cover every event or issue. For instance, it wont cover:
- Claim costs that exceed your policy limits.
- Intentional damage.
- Mechanical breakdowns.
- Personal belongings in your car.
- Roadside assistance.
- Wear and tear.
For full details about what is and isn’t covered by your car insurance policy, always check with your insurance company.
How much does full coverage car insurance cost?
On average, a full coverage car insurance policy costs $2,070 per year, or $172 per month. How much you’ll pay for coverage will depend on various factors, including your driving record, make and model vehicle, amount of coverage and where you live.
See the table below to find the average cost of full coverage car insurance in your state.
| STATE | AVERAGE ANNUAL COST | AVERAGE MONTHLY COST |
|---|---|---|
Alabama | $1,975 | $165 |
Alaska | $1,913 | $159 |
Arizona | $2,110 | $176 |
Arkansas | $2,295 | $191 |
California | $2,768 | $231 |
Colorado | $2,591 | $216 |
Connecticut | $2,252 | $188 |
Delaware | $2,405 | $200 |
Florida | $3,865 | $322 |
Georgia | $2,003 | $167 |
Hawaii | $1,369 | $114 |
Idaho | $1,246 | $104 |
Illinois | $1,903 | $159 |
Indiana | $1,627 | $136 |
Iowa | $1,559 | $130 |
Kansas | $2,032 | $169 |
Kentucky | $2,496 | $208 |
Louisiana | $3,545 | $295 |
Maine | $1,361 | $113 |
Maryland | $2,210 | $184 |
Massachusetts | $1,804 | $150 |
Michigan | $2,372 | $198 |
Minnesota | $2,016 | $168 |
Mississippi | $1,917 | $160 |
Missouri | $2,434 | $203 |
Montana | $2,354 | $196 |
Nebraska | $1,709 | $142 |
Nevada | $2,496 | $208 |
New Hampshire | $1,390 | $116 |
New Jersey | $2,438 | $203 |
New Mexico | $2,082 | $174 |
New York | $2,612 | $218 |
North Carolina | $1,470 | $123 |
North Dakota | $2,190 | $183 |
Ohio | $1,434 | $120 |
Oklahoma | $2,741 | $228 |
Oregon | $1,748 | $146 |
Pennsylvania | $2,353 | $196 |
Rhode Island | $2,080 | $173 |
South Carolina | $2,172 | $181 |
South Dakota | $2,075 | $173 |
Tennessee | $1,843 | $154 |
Texas | $2,609 | $217 |
Utah | $2,050 | $171 |
Vermont | $1,158 | $97 |
Virginia | $1,755 | $146 |
Washington | $1,525 | $127 |
West Virginia | $1,942 | $162 |
Wisconsin | $1,655 | $138 |
Wyoming | $1,531 | $128 |
Tips for buying full coverage car insurance
To find the best full-coverage car insurance, follow these tips:
Consider your coverage needs. A full-coverage car insurance policy should meet your state’s minimum insurance requirements. If you finance or lease your vehicle, your policy should also meet any loan or lease agreement requirements.
However, sticking to the minimum amount of coverage required may not be enough to protect you after an accident.
“Insurance professionals recommend you purchase liability coverage well above the state minimums to ensure you are adequately protected from a major financial loss caused by an at-fault accident,” said Friedlander. “Most experts recommend carrying auto liability insurance limits of at least $100,000 bodily injury per person/$300,000 per accident, and $100,000 of property damage liability coverage.”
Compare quotes. Always start by getting quotes from at least three different insurers for the same type and amount of coverage. Doing so will help you get an idea of your average rate and make it easier to find the best car insurance for your needs and budget.
Check car insurance company reviews. It’s tempting to go with the cheapest car insurance company, but doing so may cost you in the long run. Before you choose an insurer, read online car insurance reviews and chat with friends and family members about their experiences with a potential insurer.
Full coverage car insurance and deductibles
With a full coverage car insurance policy, only certain types of claims will require a deductible, or the amount of money an insurer will subtract from your claims check after an eligible claim.
Collision and comprehensive car insurance claims require a deductible, while liability claims do not. However, depending on your policy and where you live, you may also have to pay a deductible for PIP and uninsured/underinsured motorist property damage claims.
The most common deductible is $500, but deductibles can range from as little as $100 or less to as high as $2,500. Options vary by insurer.
Higher deductibles usually lead to lower car insurance premiums, though you’ll be on the hook for more out-of-pocket expenses after a claim. Lower deductibles typically lead to higher premiums.
Is full coverage worth it?
Yes, full coverage car insurance can be worth it. A full coverage car insurance policy can provide financial protection in multiple scenarios, including if you’re at fault for an accident or if your vehicle is damaged in a non-collision event, such as a hail storm, falling tree or flooding.A liability-only car insurance policy will only cover expenses others incur after you’re at fault for an accident.
However, there are instances under which you may not want or need a full coverage policy.
“If your car holds minimal value and you have high deductibles, you may want to consider dropping collision and comprehensive coverages,” said Friedlander. “For example, if your car’s value is $2,500 and you have a $1,000 collision deductible and $500 comprehensive deductible,” then full coverage may not be worth it.
Frequently asked questions (FAQs)
A full coverage auto insurance policy generally includes liability insurance and collision and comprehensive coverage. It can also include any additional coverage required in your state, such as personal injury protection (PIP) or uninsured motorist insurance.
No, full coverage car insurance does not cover engine problems or any other type of mechanical issues other than those that are a direct result of a collision or covered event, such as vandalism or fire.
For additional protection from mechanical failures, consider an extended car warranty or a specific mechanical breakdown insurance policy.
Liability car insurance is one type of car insurance that covers property damage and medical expenses others may have when you’re at fault for an accident.
Full coverage car insurance is a collection of coverages including liability insurance as well as comprehensive and collision coverage. It may also include other types of coverage, such as PIP, MedPay and uninsured/underinsured motorist coverage.
No, full coverage car insurance does not protect you in every scenario. Though full coverage policies can vary, they typically include liability, comprehensive and collision insurance. This type of policy may also include other types of coverage required in your state.
A full-coverage car insurance policy does not cover wear and tear or mechanical issues that are not directly related to an accident or covered event. Further, your policy will only coverage costs up to the policy limits.
Not sure what policy limit to choose? How much car insurance do I need?
You may need full coverage car insurance is you finance or lease your vehicle. That’s because lenders and lessors often require full coverage as part of their financing or lease agreement.
Even if you don’t need full coverage, there are still benefits to choosing this level of coverage. This is particularly true if you don’t think you’d be able to cover repairs to your own vehicle after an accident or non-collision event.
