“Full coverage auto insurance” generally refers to an auto policy that provides multiple types of coverage, including at least liability, comprehensive, and collision coverages. This insurance protects you and your vehicle from both at-fault and not-at-fault situations, making it a more robust option than state-mandated minimum coverage.
Types of insurance included in full coverage
The following insurances are typically included in full coverage:
- Liability coverage is mandated in most states and includes bodily injury liability and property damage liability. Bodily injury liability pays for medical expenses if you injure someone in an accident. Property damage liability covers damages you cause to other people’s property, such as their vehicle or fence.
- Collision coverage pays for repairs or replacements on your vehicle if you’re involved in an accident where you’re at fault or there’s no other at-fault driver. This includes hitting a telephone pole or fence, damaging your car with a pothole, rolling your vehicle, or hitting another car.
- Comprehensive coverage covers damage to your car from non-collision event. This includes instances of theft or vandalism, as well as collisions with animals, fallen trees and broken windshields.
Additional coverage options
Depending on your carrier, the policy you build and your state requirements, your full coverage auto insurance can also include one or more of the following:
- Uninsured motorist/underinsured motorist (UM/UIM) covers medical expenses — and sometimes property damage, depending on the state — after an accident caused by another driver, if they were uninsured or their coverage limits were too low.
- Personal injury protection (PIP) pays for your medical bills, lost wages, rehabilitation costs, certain essential services and funeral expenses after a car accident, regardless of who is at-fault.
- Medical payments (MedPay) pays for medical bills, rehabilitation costs, and funeral expenses for you and your passengers, regardless of fault.
- Gap insurance is typically for leased and financed vehicles. It pays the difference between your insured value and what you still owe to your lender if the vehicle is totaled.
- Roadside assistance covers towing costs, battery jumps, refueling and key lockout services for your insured vehicle.
- Rental car reimbursement pays for a rental car if your vehicle is damaged or totaled.
How much does full coverage car insurance cost?
On average, a full coverage car insurance policy costs about $160 to $200 per month, or roughly $2,000 per year.
Several factors can impact how much you pay for car insurance. Each insurer may weigh individual factors differently, but they usually involve:
- Your age and, in some states, gender.
- Where you live.
- The vehicle you drive.
- Your coverage limits, deductible and insurance company.
- Any discounts for which you qualify.
- Your claims history and driving record.
Here’s what you can expect to pay for full coverage with different insurers, according to quote data from Jerry customers.
|
Insurance Company
|
Avg Monthly Quote
|
|---|---|
| Grange | $122 |
| Freedom | $204 |
| Aspire Advantage | $226 |
| Safeco | $246 |
| Bluefire | $247 |
| Mercury | $262 |
| Progressive | $265 |
| Metlife | $273 |
| Anchor General | $285 |
| First Acceptance | $300 |
How to find the cheapest full coverage car insurance
Full coverage costs more than the state-mandated minimume, but it’s still possible to find an affordable policy. Here are some ways to reduce your premium without sacrificing coverage.
- Adjust your coverage. Find the right balance between the policy you need and your budget by adjusting your coverage options. The more coverage you buy, the more you can expect to pay.
- Raise your deductible. Choosing a higher deductible lowers your premium, but make sure you can afford to pay the deductible on short notice if you need to.
- Leverage discounts. Many insurers offer discounts for bundling multiple policies, being a safe driver, paying your premium in full, enrolling in paperless bills and tracking your driving habits with a telematics app or device. Stack multiple discounts and you could save quite a bit.
- Shop around at renewal. The carrier that’s right for you today may not be the right one next year. It pays to get quotes from multiple insurers each time your coverage is set to renew.
- Minimize risks. Insurance premiums are influenced by things like your driving record and even your credit score. Avoid accidents, traffic violations, and keep your credit in check for the lowest possible rates.
Do you need full coverage?
Whether you need full coverage auto insurance depends on your budget, risk tolerance and needs. Here are some guidelines that can help you decide.
Full coverage may be the right choice if:
- You have an auto loan or lease that makes full coverage mandatory.
- You can’t afford to replace your vehicle out of pocket if it’s totaled.
- You live in an area with a high accident rate, auto theft, or frequent animal collisions.
- You want peace of mind no matter what happens on the road.
Liability-only may be sufficient if:
- You own an older car outright and full coverage exceeds 10% of its replacement value.
- Your vehicle is currently parked or not in use.
Learn more: Liability insurance vs. full coverage
FAQ
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Am I required to buy full coverage car insurance?
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What does full coverage mean in auto insurance?
Methodology
Data included in this analysis comes from policies that Jerry has quoted within the last 18 months. Jerry services 48 states and offers a range of insurance companies to choose from.
Stephanie Colestock is a seasoned writer specializing in personal finance. With over 14 years of experience, she crafts insightful and accessible content on a wide range of financial topics, including insurance, credit and debt management, banking, investing, retirement planning, and household finances.
Her bylines appear in top-tier publications such as TIME, Fortune, MSN, Forbes, USA Today, Money, Fox Business, and CBS. Stephanie\’s deep understanding of complex financial concepts and her ability to communicate them clearly have made her a trusted voice in the industry.
When she’s not writing, Stephanie enjoys helping individuals make smarter financial decisions through her engaging and well-researched articles.
Megan Lee is an editor, writer, and SEO expert who specializes in insurance, personal finance, travel, and healthcare. She has been published in U.S. News & World Report, USA Today and elsewhere, and has spoken at conferences like that of NAFSA: Association of International Educators. Megan has built and directed remote content teams and editorial strategies for several websites, including NerdWallet. When she`s not crafting her next piece of content, Megan adventures around her Midwest home base where she likes to drink cortados, attend theme parties, ride her bike and cook Asian food.
