What Is Full Coverage Auto Insurance?

Building a new auto insurance policy involves choosing your coverages. If you want the highest level of protection regardless of what happens on the road, you will want to purchase a full coverage policy. 

But what does full coverage car insurance cover and how much can you expect to pay? Here’s what you need to know and how to find the right carrier for your needs.

What is full coverage insurance?

There is no one-size-fits-all definition for what constitutes “full coverage” car insurance,  but it generally refers to an auto policy that provides multiple types of coverage, including at least liability, comprehensive, and collision coverages. By protecting you and your vehicle from both at-fault and (potentially) not-at-fault situations, it’s a better option than state minimum coverage for most drivers, and includes the most complete protection available for you, your vehicle, and your passengers. 

Types of coverage included in full coverage

Here’s a breakdown of the key components typically found in full coverage car insurance:

• Liability coverage: Mandated in most states and includes bodily injury liability and property damage liability.  Bodily Injury Liability pays for medical expenses if you’re responsible for injuring someone in an accident. Property Damage Liability covers damages you cause to other people’s property, such as their vehicle or fence.
• Collision coverage: Helps pay for repairs or replacement of your vehicle if you’re involved in a moving 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 being at-fault for hitting another car. 
• Comprehensive coverage:  Covers damage to your car from non-collision damages and loss, such as your vehicle being stolen or vandalized. It may also include 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) from an accident caused by another driver, if they were uninsured or their coverage limits were too low.
• Personal injury protection (PIP): Pays for your (and your passengers’) 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: Pays the difference between your insured value and what you still owe to your lender if the vehicle is totaled. (May be required for leased vehicles and new car purchases.)
• Roadside assistance: Covers towing (and sometimes labor) 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 is full coverage car insurance?

On average, a full coverage car insurance policy costs around $160-$200 a month, or roughly around $2,000 per year. 

It’s important to note several factors  can impact how much you’ll actually pay for your coverage. Each carrier 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 carrier.
• Any discounts for which you qualify.
• Your claims history and driving record.

Jerry can help you find the best (and most affordable) full coverage car insurance. According to our expert data, here’s what you might expect to pay for full coverage auto insurance policies from some of the nation’s top carriers:

While not a complete list, these are some of the best full coverage auto insurance companies. Your personalized quotes will vary, so it’s important to shop around if you want to find great car insurance rates for your specific situation.

How to find the cheapest full coverage car insurance

As soon as you start shopping for full coverage insurance, you’ll realize rates are notably higher than if you’re just buying minimum liability insurance. So if you’re looking for “cheap” car insurance, full coverage won’t fit the bill. 

If you know that a more comprehensive policy is right for you and want to find somewhat-cheap full coverage car insurance — or at least, the lowest possible price — here are some ways to reduce your premiums 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 in premiums. 
• Change your deductible. All auto insurance companies base rates on risk. Your policy’s deductible is the amount of risk you’re willing to take on upfront, so choosing a higher deductible means lower premiums. Just make sure you can afford the deductible if you need to file a claim
• 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 in a year’s time. It can pay to shop around and get quotes from other insurers each time your coverage is set to renew. 
• Minimize risks low. 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?

For certain drivers, full coverage auto insurance offers the best coverage for you, your vehicle, and your passengers. Without full coverage, you’re unprotected in case of theft or accidents you cause, for example.

While full coverage is beneficial, is it absolutely necessary? Not always.

You need full coverage if:

• You have an auto loan or lease.
• 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.

You can usually skip full coverage 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

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.

MEET OUR EXPERTS

Stephanie Colestock

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

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.