Full coverage auto insurance offers complete protection with liability, collision, and comprehensive coverages, starting at $119/mo. Our guide explores the benefits of these essential insurance
Full Coverage Auto Insurance: What It Covers, Costs, and When You Need It
Full coverage auto insurance provides broader protection than liability-only insurance by combining liability coverage with collision and comprehensive coverage. It can help protect you financially against damage to your vehicle, injuries or property damage you cause to others, theft, vandalism, weather-related damage, and other covered events.
However, “full coverage” does not mean everything is covered. The exact protection you receive depends on the coverages, limits, deductibles, exclusions, and optional protections included in your policy.
Understanding what full coverage means can help you decide whether the additional cost is worthwhile for your vehicle and financial situation.
Read more about Types of Auto Insurance Coverage.
What You Should Know
- Full coverage typically combines liability, collision, and comprehensive insurance.
- Full coverage protects against more risks than liability-only insurance.
- Collision coverage helps pay for damage to your vehicle after a covered collision.
- Comprehensive coverage protects against many non-collision events, including theft, vandalism, and certain weather damage.
- Full coverage is generally more expensive than minimum liability insurance.
- Most lenders require comprehensive and collision coverage when you finance or lease a vehicle.
- Full coverage does not automatically include roadside assistance, rental reimbursement, or gap insurance.
- The cost of full coverage depends on factors such as your age, driving record, vehicle, location, coverage limits, and deductible.
- Comparing quotes from multiple insurers can help you find affordable full coverage.
Want to compare full coverage auto insurance rates? Enter your ZIP code in our free quote comparison tool to compare available rates in your area.
What Is Full Coverage Auto Insurance?
Full coverage auto insurance is a common term used to describe a policy that combines several major types of coverage, usually including:
- Liability insurance
- Collision insurance
- Comprehensive insurance
Liability insurance protects you financially when you are responsible for injuries or property damage to another party.
Collision coverage helps pay for damage to your own vehicle resulting from a covered collision.
Comprehensive coverage protects your vehicle against many non-collision events, such as theft, vandalism, fire, hail, and certain weather-related damage.
Read more about the difference between collision and comprehensive auto insurance.
Example of Full Coverage
Suppose a tree falls on your vehicle during a severe storm.
If you only carry liability insurance, your policy generally would not pay to repair the damage to your own vehicle.
If you have comprehensive coverage as part of your broader auto insurance policy, the damage may be covered, subject to your deductible and policy terms.
This is one reason full coverage can provide greater financial protection than liability-only insurance.
Is “Full Coverage” an Official Insurance Term?
Not exactly.
“Full coverage” is commonly used by drivers and insurance professionals, but it does not represent one specific insurance coverage.
Different insurers and consumers may use the term differently. A policy described as full coverage may still have exclusions, coverage limits, deductibles, and gaps in protection.
For that reason, you should always review the actual coverages included in a policy rather than assuming that “full coverage” protects you against every possible situation.
What Does Full Coverage Auto Insurance Include?
Full coverage generally starts with liability, collision, and comprehensive coverage. Depending on your state, insurer, and individual needs, you may also add other protections.
Liability Insurance
Liability insurance helps cover injuries and property damage you cause to other people when you are responsible for an accident.
It typically includes:
- Bodily injury liability: Helps cover injuries and related expenses suffered by other people.
- Property damage liability: Helps cover damage you cause to another person’s vehicle or property.
Learn more about liability auto insurance.
Pros
- Required in most states
- Protects you from many third-party financial claims
- Can help cover medical and property damage expenses
- May provide legal defense for covered claims
Cons
- Does not generally cover damage to your own vehicle
- Coverage is limited by your policy limits
- Minimum required limits may not provide sufficient protection after a serious accident
Collision Coverage
Collision insurance helps pay for repairs to your vehicle after a covered collision.
Examples may include:
- Hitting another vehicle
- Hitting a stationary object
- Damaging your vehicle in a single-car accident
- Rolling or overturning your vehicle
Collision coverage generally comes with a deductible.
Pros
- Helps protect the value of your vehicle
- Covers many collision-related losses
- Useful for newer or expensive vehicles
- Can reduce major out-of-pocket repair costs
Cons
- Increases your insurance premium
- Usually requires a deductible
- May not be worthwhile for some older, low-value vehicles
Comprehensive Coverage
Comprehensive insurance covers many types of vehicle damage that are not caused by a collision.
It may protect against:
- Theft
- Vandalism
- Fire
- Hail
- Falling objects
- Flooding
- Certain severe weather events
- Animal-related damage
Learn more about comprehensive auto insurance.
Pros
- Protects against vehicle theft
- Covers many weather-related losses
- Provides protection against vandalism
- Covers certain non-collision damage
Cons
- Usually increases your premium
- Typically includes a deductible
- Does not cover every possible type of damage
- Does not generally cover normal wear and tear or mechanical failure
Additional Coverage Options
Full coverage does not automatically include every type of optional protection.
Depending on your needs, you may want to consider additional coverage.
Uninsured and Underinsured Motorist Coverage
This coverage can help protect you if an at-fault driver has no insurance or does not have enough insurance to cover your damages.
Read more about uninsured and underinsured motorist coverage.
Personal Injury Protection
Personal injury protection, or PIP, can help cover medical expenses and certain other costs after an accident, depending on state law and policy terms.
Medical Payments Coverage
MedPay can help pay medical expenses resulting from an accident. Unlike PIP, it generally does not provide the same broader benefits, such as lost-wage coverage.
Gap Insurance
Gap insurance can be useful when you owe more on your vehicle loan or lease than the vehicle is worth.
This can happen because vehicles often depreciate faster than the loan balance decreases.
Rental Reimbursement
Rental reimbursement can help pay for a rental vehicle while your insured vehicle is being repaired after a covered claim, subject to policy limits.
Roadside Assistance
Roadside assistance can provide services such as:
- Towing
- Jump-starts
- Flat-tire assistance
- Lockout assistance
- Fuel delivery
These services are generally optional and may be purchased through an insurer or another roadside assistance provider.
Full Coverage vs. Liability-Only Insurance
One of the biggest decisions drivers face is whether to purchase liability-only insurance or broader full coverage.
| Coverage | Liability Only | Full Coverage |
|---|---|---|
| Bodily injury liability | Yes | Yes |
| Property damage liability | Yes | Yes |
| Collision coverage | No | Usually |
| Comprehensive coverage | No | Usually |
| Damage to your own vehicle after a covered collision | No | Usually |
| Theft protection for your vehicle | No | Usually |
| Vandalism protection | No | Usually |
| Weather-related vehicle damage | No | Usually |
| Optional protections | Varies | Varies |
The major difference is that liability-only insurance primarily protects you against claims from other parties, while full coverage can also protect your own vehicle.
Pros of Liability-Only Insurance
- Lower premiums
- Meets minimum insurance requirements in many states
- May make financial sense for older, low-value vehicles
- Gives you the option to self-insure vehicle damage
Cons of Liability-Only Insurance
- Does not generally pay to repair your vehicle after an accident you cause
- Does not typically cover theft or vandalism
- You may have significant out-of-pocket expenses after vehicle damage
- Minimum limits may provide limited financial protection
Pros of Full Coverage
- Provides broader protection
- Protects your vehicle against many risks
- May be required by a lender or lease company
- Reduces potential out-of-pocket repair or replacement costs
Cons of Full Coverage
- Costs more than liability-only insurance
- Deductibles generally apply to collision and comprehensive claims
- May not be financially worthwhile for some older vehicles
- Still does not cover every possible situation
When Should You Get Full Coverage Auto Insurance?
Full coverage is not necessary for every driver, but it can be especially valuable in certain situations.
Consider full coverage if you:
- Have a new or expensive vehicle
- Have a car loan or lease
- Cannot afford to replace your vehicle after a major loss
- Live in an area with frequent severe weather
- Live in an area with higher vehicle theft or vandalism rates
- Drive frequently in heavy traffic
- Want additional protection for your vehicle
Do You Need Full Coverage to Finance a Car?
Many lenders and lease companies require borrowers to carry comprehensive and collision coverage because the vehicle serves as collateral for the loan.
Read more: Do I Need Full Coverage Insurance to Finance a Car?.
You may also want to consider gap insurance if you owe more on your vehicle than its current market value.
When Can You Consider Dropping Full Coverage?
Full coverage may become less valuable as your vehicle gets older and its market value decreases.
For example, if your vehicle is worth only a few thousand dollars and your comprehensive and collision deductibles are relatively high, the potential insurance payout may not justify the additional premium.
Before dropping coverage, consider:
- Your vehicle’s current value
- Your annual full coverage premium
- Your deductibles
- Your savings
- Your ability to replace the vehicle
- Whether your vehicle is financed or leased
If you own the vehicle outright and have enough savings to handle a major loss, liability-only insurance may be worth considering.
Read more about when to drop full coverage auto insurance.
How Much Does Full Coverage Auto Insurance Cost?
Full coverage generally costs more than minimum or liability-only insurance because it provides protection for your own vehicle in addition to liability protection.
Insurance rates vary significantly between drivers and companies.
Factors that can affect your premium include:
- Age
- Driving history
- Claims history
- Location
- Vehicle make and model
- Vehicle value
- Annual mileage
- Coverage limits
- Deductibles
- Credit-based insurance factors where permitted
- Discounts
Full Coverage Auto Insurance Rates by Age and Driving Record
The following sample rates demonstrate how premiums can vary based on driver age, gender, and driving history.
| Driver | Clean Record | One Ticket | One Accident | One DUI |
|---|---|---|---|---|
| 16 Female | $566 | $660 | $705 | $878 |
| 16 Male | $618 | $728 | $774 | $966 |
| 18 Female | $416 | $484 | $529 | $658 |
| 18 Male | $501 | $584 | $635 | $768 |
| 30 Female | $128 | $153 | $179 | $235 |
| 30 Male | $139 | $163 | $192 | $251 |
| 45 Female | $119 | $173 | $173 | $209 |
| 45 Male | $119 | $147 | $173 | $209 |
| 60 Female | $106 | $125 | $148 | $187 |
| 60 Male | $110 | $129 | $153 | $191 |
These figures illustrate why it is important to compare quotes based on your own driver profile rather than relying on a single average rate.
You can also learn more about average car insurance rates by age.
Liability vs. Full Coverage Rates
Full coverage usually costs considerably more than liability-only insurance because it provides additional protection for your vehicle.
| Insurance Company | Liability Only | Full Coverage |
|---|---|---|
| Allstate | $61 | $228 |
| American Family | $43 | $166 |
| Auto-Owners | $33 | $124 |
| Farmers | $53 | $198 |
| Geico | $30 | $114 |
| Liberty Mutual | $67 | $248 |
| Nationwide | $32 | $164 |
| Progressive | $39 | $150 |
| State Farm | $33 | $123 |
| Travelers | $38 | $141 |
These rates are examples and should not be interpreted as guaranteed prices. Your actual premium can be significantly different depending on your location, driving history, vehicle, coverage choices, and other rating factors.
Factors That Affect Full Coverage Auto Insurance Rates
Insurance companies consider multiple factors when calculating premiums.
Driving Record
Drivers with accidents, tickets, or serious violations may pay higher rates because insurers generally consider them higher-risk customers.
Maintaining a clean driving record can help reduce your insurance costs over time.
Age and Driving Experience
Younger and less-experienced drivers generally pay higher premiums than experienced drivers.
Insurance rates often decrease as drivers gain experience and maintain a clean record.
Vehicle Type
The vehicle you drive can have a significant impact on your premium.
Insurers may consider:
- Vehicle value
- Repair costs
- Theft risk
- Safety features
- Accident statistics
- Engine performance
Location
Where you live can also affect insurance rates.
Urban areas may have higher rates because of factors such as traffic congestion, theft, accidents, and claims frequency.
Coverage Limits and Deductibles
Higher coverage limits generally provide more protection but can increase your premium.
Choosing a higher deductible may reduce your premium, but you will need to pay more out of pocket if you file a covered claim.
How to Save Money on Full Coverage Auto Insurance
Full coverage does not have to be unnecessarily expensive. There are several ways to potentially reduce your premium while maintaining appropriate protection.
Compare Multiple Quotes
Shopping around is one of the most effective ways to find competitive rates.
Different insurers can charge different prices for similar coverage, so compare multiple providers before purchasing a policy.
Increase Your Deductible
A higher deductible may lower your premium.
However, make sure you have enough savings to cover the deductible if you need to file a claim.
Learn more about auto insurance deductibles.
Take Advantage of Discounts
Ask your insurer about available discounts.
Potential savings may include:
- Safe-driver discounts
- Multi-policy discounts
- Multi-vehicle discounts
- Paid-in-full discounts
- Good-student discounts
- Vehicle safety discounts
- Anti-theft discounts
You can also learn about anti-theft auto insurance discounts.
Bundle Your Policies
Some insurers offer discounts when you purchase multiple policies from the same company.
For example, combining auto and homeowners or renters insurance may reduce your overall insurance costs.
Maintain a Good Driving Record
Avoiding accidents and traffic violations can help you maintain more competitive insurance rates over time.
Review Your Policy Regularly
Your insurance needs can change as your vehicle ages, your driving habits change, or your financial situation changes.
Review your policy periodically and compare new quotes to make sure you’re still receiving competitive pricing.
Is Full Coverage Auto Insurance Worth It?
Whether full coverage is worth the cost depends on your individual situation.
Full coverage may be worthwhile when:
- Your vehicle has significant value
- You have a loan or lease
- You cannot afford to replace your vehicle
- You want protection against theft and weather damage
- You drive frequently
- You want to minimize unexpected repair expenses
Liability-only insurance may make more sense when:
- Your vehicle has a low market value
- Your vehicle is fully paid off
- You have enough savings to replace it
- The cost of full coverage is high relative to the vehicle’s value
There is no single answer that works for every driver. Compare the cost of full coverage with the value of your vehicle and your ability to absorb a financial loss.
Final Thoughts
Full coverage auto insurance provides broader protection than liability-only insurance by typically combining liability, collision, and comprehensive coverage.
It can help protect your vehicle against collisions, theft, vandalism, weather-related damage, and other covered events. However, full coverage does not mean that every possible loss is automatically covered.
Your policy’s limits, deductibles, exclusions, and optional coverages all matter.
If you have a newer vehicle, finance or lease your car, or cannot comfortably afford a major repair or replacement, full coverage may be a worthwhile investment. On the other hand, drivers with older, low-value vehicles may find that liability-only insurance provides better value.
The best way to find affordable coverage is to compare quotes from multiple insurance companies using the same coverage levels and deductibles. This allows you to compare prices accurately and choose a policy that provides the protection you need without unnecessarily increasing your insurance costs.
Frequently Asked Questions
What does full coverage auto insurance mean?
Full coverage is a commonly used term for an auto insurance policy that generally combines liability, collision, and comprehensive coverage. It does not mean that every possible loss is covered.
Does full coverage include comprehensive and collision insurance?
Typically, yes. Full coverage generally refers to a policy that includes both comprehensive and collision coverage along with liability insurance.
Does full coverage cover theft?
Comprehensive coverage generally helps pay for a covered vehicle theft, subject to your policy’s terms and deductible.
Does full coverage cover weather damage?
Comprehensive coverage generally covers many types of weather-related damage, such as hail, falling objects, and certain storm-related losses.
Is full coverage required by law?
States generally require certain minimum liability coverage, but they typically do not require drivers to purchase what is commonly called full coverage. However, lenders and lease companies may require comprehensive and collision coverage.
Do I need full coverage if I finance a car?
Many lenders require comprehensive and collision coverage for financed vehicles. Check your loan agreement to determine the specific insurance requirements.
Is full coverage worth it on an older car?
It depends on the vehicle’s value, your premium, deductible, and financial situation. If your vehicle has a low market value and you can afford to replace it, liability-only coverage may be worth considering.
Does full coverage include roadside assistance?
Not necessarily. Roadside assistance is usually an optional coverage that must be added to your policy.
Does full coverage include rental car coverage?
Not automatically. Rental reimbursement is generally an optional coverage that can be added to eligible policies.
Does full coverage include gap insurance?
No. Gap insurance is a separate type of protection that may help cover the difference between your vehicle’s value and the amount you still owe on a loan or lease.
How can I get cheaper full coverage auto insurance?
Compare quotes from multiple companies, maintain a clean driving record, ask about discounts, consider an appropriate deductible, bundle eligible policies, and regularly review your coverage.