What Is Full Coverage Car Insurance?

You may have heard about full coverage car insurance while shopping for coverage. But while that sounds like a single type of insurance that covers you in every possible situation, the truth is “full coverage insurance” usually refers to a combination of separate coverage types.

Full coverage insurance explained

Full coverage car insurance typically refers to an auto policy that combines liability insurance with comprehensive and collision insurance. With full coverage insurance, your policy will pay for damage to your car and also covers injuries or damage you cause to others.

Full coverage car insurance isn’t required by law. Most states require a minimal amount of liability insurance, but this only covers damage or injuries you cause to others, not your own injuries or car repairs. Auto insurance with full coverage offers extra financial protection after a crash beyond your state’s minimum requirements, so it is generally recommended if you can afford it.

Full coverage car insurance is typically a combination of these three types of coverage:

Liability insurance

pays for other people’s medical bills and property damage from an accident you cause.

Collision insurance

pays for damage to your own vehicle after an accident.

Comprehensive insurance

pays for damage to your vehicle from circumstances outside your control, like natural disasters or theft.

What does full coverage car insurance cover?

Full coverage insurance can apply in most situations, such as dealing with damage to your car from a storm, an at-fault accident, hitting an animal or even vandalism. And if your car is stolen, your full coverage insurance will even pay out the current value of your car (minus your insurance deductible) so you can afford to replace it.

Below are the coverage types you may get in a full coverage insurance policy and how they work.

To learn more about these and other types of car insurance coverage, use our tool below.

You can think about full coverage insurance like a knight’s suit of armor. You start with your state’s mandated car insurance requirements, just like a knight starts with a breastplate — the bare minimum. But sometimes that amount of protection isn’t enough. Opting into additional coverage types will give you financial protection in even more areas, just like how a knight with more armor pieces can protect other parts of their body.

But full coverage auto insurance doesn’t cover everything, and it may or may not include all the types of insurance listed above. If you want extras like new-car replacement insurance, emergency roadside assistance or custom parts and equipment coverage, you may need to add them to your policy separately.

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Types of car insurance

Cost of full coverage car insurance

The national average for full coverage auto insurance is per year, or about a month, for a 35-year-old good driver with good credit, according to NerdWallet’s analysis. Full coverage can often be more than three times the price of minimum-required liability insurance, which is why it pays to shop around and compare quotes from multiple companies to find the cheapest rate.

Average annual full coverage car insurance premium by company

Below is the average cost of full coverage auto insurance for a 35-year-old good driver with good credit from some of the country’s largest insurers.

Average annual full coverage car insurance premium by age

Your age is a big factor in your full coverage insurance cost. Below is the average cost of full coverage auto insurance by age for drivers with good credit and a clean driving record.

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Cheap full coverage auto insurance

Do I need full coverage car insurance?

Full coverage auto insurance can be extremely beneficial to have, but it typically isn’t required unless you have an auto loan or lease. You may still want to add it to your policy, however. Full coverage insurance may be a good idea if you:

Drive a new or expensive car.
Regularly commute in heavy traffic.
Live in a place with extreme weather, high car theft rates or a high risk of animal collisions.
Can’t afford to repair or replace your car if it’s wrecked or stolen.

However, full coverage may not make sense if you drive an older vehicle. Comprehensive and collision insurance will only reimburse you up to the value of your car at the time it’s damaged or stolen. And these types of coverage usually come with an insurance deductible, which is an amount you’re expected to pay out of pocket toward repair or replacement costs.

If your deductible is more than the value of your car, you may want to skip these coverage types.

For example, let's say you have a car worth $1,500. You opted into comprehensive and collision insurance, which costs $600 per year with a $1,000 deductible. But if you get into a car accident and total your car, the most you’ll get from your insurer is a $500 check, which is your car's value minus your deductible. In this case, you're left with $500, which is $100 less than what you paid for the coverage.

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Understanding comprehensive and collision insurance

Although full coverage car insurance doesn't make sense here, you'll still need to buy minimum coverage to legally drive.

Not sure if you need full coverage auto insurance? Checking your car’s current value can help you decide whether full coverage insurance makes sense.

How to save on full coverage car insurance

Shop around.

It’s important to shop around if you want to find cheap auto insurance. Compare rates with at least three companies to find the cheapest rate for you.

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Get free car insurance quotes

Look for discounts.

There are car insurance discounts for everything from getting good grades to owning a new car. Call your agent to confirm what’s offered to maximize your savings.

Consider increasing your deductible.

One way to lower your car insurance bill is by raising the deductible, which is what you’re on the hook for before insurance pays out. Doing this will lower the overall cost of your policy, although savings vary by company.

Avoid traffic infractions.

Speeding tickets, accidents and DUIs can increase your car insurance rates drastically, even after one incident. These infractions can stay on your record for three to five years, so make sure to drive cautiously if you want the cheapest rates.

Work on your credit.

Although it isn’t always easy to build your credit, it can impact your auto insurance bill. Our analysis of the average cost of car insurance found having poor credit can increase your rates more than a recent DUI for some drivers. There are exceptions to this, however:

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How to build credit