The Cheapest (and Best) Full Coverage Car Insurance

The Cheapest (and Best) Full Coverage Car Insurance

State Farm has the best cheap full coverage policy that's widely available, with an average annual rate of $1,738 or $145 per month.

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Full coverage car insurance is more expensive than policies that only include liability insurance. The average cost of a full coverage car insurance policy is $2,399 per year or $200 per month. That's more than double the average price of liability only car insurance. But you can still find savings with the right insurer.

We've analyzed rates of the major insurers in every state to rank the cheapest companies for full coverage policies. And because the cheapest company isn't necessarily the best, compare recommendations for the best full coverage car insurance companies to help you shop around for cheap full coverage auto insurance near you.

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The cheapest companies for full coverage car insurance

Our analysis found that State Farm is the cheapest widely available company in the country for full coverage policies with an average annual rate of $1,728, or $145 per month.

However, there are plenty of cheap alternatives depending on your location and qualifying status:

  • At $109 per month, USAA is the cheapest full coverage option. But you'll need to be an active or retired military member or family to qualify.
  • On average, Erie Insurance is also cheaper than State Farm at $127 per month. But it's only available in 12 states.
  • Farm Bureau is available in nearly every state, and a full coverage policy costs about the same on average as State Farm: $148 per month.
Cheapest full coverage car insurance

Find the Cheapest Full Coverage Quotes in Your Area

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Full coverage car insurance offers more protection for higher premiums than liability-only car insurance. A liability policy only covers damage to other drivers. Full coverage is more expensive because it includes liability coverage plus collision and comprehensive coverage, which protects you for damage to your car in most types of accidents. If you have a car loan or lease, your lender will typically require full coverage.

Insurer
Editor's rating
Monthly cost
USAA*
$109
Erie
$127
State Farm
$145
Farm Bureau
$148
American Family
$170
Show All Rows

*Only current and former military members and their families are eligible for a USAA policy.

How did you find the cheapest companies?

To help you find the cheapest full-coverage car insurance, our experts compiled auto insurance rates across 51 companies in hundreds of ZIP codes in each state. All quotes are for full coverage policies with liability, uninsured/underinsured motorist, collision and comprehensive coverage. We narrowed down the list to insurers that offered quotes in at least five states to give you the best chance at finding a company that's available near you.

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How much is full coverage car insurance by state?

Auto insurance is regulated by state, and rates can vary by hundreds of dollars depending on where you live. On average, full coverage policies are almost three times as expensive per month as a minimum coverage policy.

State
Full coverage
Liability only
Alabama$173$61
Alaska$125$40
Arizona$225$82
Arkansas$184$56
California$150$48
Show All Rows

Some states have a bigger cost gap between their minimum coverage policies and full coverage policies than others. South Dakota, Wyoming and Iowa have the largest percentage increase in price when you buy full coverage instead of minimum coverage, while Florida, Michigan and Delaware have the smallest percentage jump.

The best car insurance companies for full coverage

If you're deciding which car insurance company to go with, you should always try to find a good price. But if you're looking for more than savings, you should incorporate other factors into your decision, such as customer service and coverage features.

Below we've highlighted our view on the best car insurance companies for full coverage based on a combination of price, customer service and coverage.

Best widely available full coverage car insurance: Geico

Of the insurance companies available to almost all drivers across the country, State Farm and Geico are the cheapest. Although Geico is more expensive than State Farm on average for our sample driver, that doesn't mean it'll be more expensive for you; insurers use a wide range of factors to determine rates, and your quote could be very different from your neighbor's.

In addition to its affordability, Geico has a solid customer service reputation, with a low rate of customer complaints and high marks for claims satisfaction from J.D. Power.

The combination of affordable rates and strong customer experience makes Geico a great — and widely accessible — option for full coverage shoppers.

Best local full coverage car insurance: Erie

Erie is the best of both worlds: It has some of the cheapest full coverage rates in the country, and it has a great customer service reputation. The problem is that Erie is only available in 12 states, mostly in the Midwest and East Coast.

Erie availability by state:

  • Illinois
  • Indiana
  • Kentucky
  • Maryland
  • New York
  • North Carolina
  • Ohio
  • Pennsylvania
  • Tennessee
  • Virginia
  • Washington D.C.
  • West Virginia
  • Wisconsin

Best full coverage car insurance for military families: USAA

USAA is roundly considered one of the best car insurance companies in the country. Our rates analysis finds it has the cheapest full coverage policies, and our research indicates it has some of the lowest complaint rates in the country. Third-party research backs up our analysis, with J.D. Power's Auto Claims Satisfaction Study ranking USAA top for customer satisfaction.

What is a full coverage policy and is it worth it?

Given that full coverage policies are three times as expensive on average, you'll want to make sure the extra cost is worth it.

Full coverage auto policies are typically — but not always — defined as policies that add comprehensive and collision coverage to the minimum coverage required by your state, such as liability coverage.

Collision and comprehensive coverage protect your vehicle against physical damage, whereas liability coverage protects other drivers' vehicles, as liability coverage does.

Sometimes a full coverage policy may also include uninsured or underinsured motorist coverage and personal injury protection. However, the exact definition of full coverage is not important: What matters is that you buy the right coverage for you.

As a rule of thumb, full coverage policies with comprehensive and collision insurance are worth buying if the current value of your car exceeds the increase in your annual premium plus your deductible.

What is a full coverage policy?

There is no fixed definition, but the most common understanding of a full coverage policy is one that includes comprehensive and collision insurance. These coverages are optional, as they are not required by states to be part of an auto insurance policy. They may be required if you have a car loan or lease.

Comprehensive insurance

Comprehensive insurance covers damage to your vehicle resulting from so-called acts of God, such as storm damage, or damage that's not strictly related to driving. This includes but is not limited to:

  • Damage caused by weather, including hail or falling trees
  • Vandalism or theft
  • Impact with animals on the road

Collision insurance

Collision insurance covers damage after your vehicle is involved in a crash with either another vehicle or a fixed structure, such as a fence, mailbox or pole. This could include:

  • Collision with another car
  • Crashing into stationary objects
  • Hit-and-runs

Collision and comprehensive insurance both have deductibles associated with their coverage. A deductible is how much your insurer will subtract from your claim check when you make a claim. To use a simplified example, if your $5,000 car is totaled and you have a deductible of $1,000, your insurer will send you $4,000 to cover the cost of replacement. You will have to pay the remaining $1,000 out of pocket.

What other coverages could be included in a full coverage policy?

Sometimes when an insurer uses the term full coverage, it may be referring to a policy with the full suite of available coverages. In addition to liability, comprehensive and collision coverage, this could include:

  • Uninsured motorist coverage: Covers you for bodily injury and property damage if another driver is at fault for an accident and that driver does not have car insurance. This coverage may be required in some states.
  • Underinsured motorist coverage: Reimburses expenses from an accident where an at-fault driver does have car insurance, but their insurance limits are not high enough to cover your costs.
  • Personal injury protection (PIP): Covers the costs of injuries you sustain in a crash, regardless of fault. It may be required in "no fault" states.

Is a full coverage policy worth it?

Because comprehensive and collision protect the value of your car, it's worth buying a full coverage policy if your car is still valuable enough to warrant a claim. A good rule of thumb: Full coverage is worth it when the current value of your car exceeds the cost of adding full coverage plus your deductible.

Using the average cost of Erie full coverage policies as an example, here's an example in which full coverage is worth the cost:

Average yearly premium of minimum coverage
$451
Average yearly premium of full coverage$1,521
The cost to add full coverage [A]$1,070
Collision/comprehensive deductible [B]$500
Current value of your car [C]$5,000
Current value of car minus premium plus deductible [C-(A+B)]$3,430

In this example, the value of the car more than offsets the sum of your annual premium and deductible. You would be reimbursed by your insurer for over $3,400. On the other hand, here's an example of when full coverage won't be worth the cost:

Average yearly premium of minimum coverage
$451
Average yearly premium of full coverage$1,521
The cost to add full coverage [A]$1,070
Collision/comprehensive deductible [B]$500
Current value of your car [C]$1,000
Current value of car minus premium plus deductible [C-(A+B)]-$570

In the second example, you have a less valuable car. The cost of adding full coverage and the associated deductible means that the value represented by a claim is negative. In this instance, you're getting no benefits from full coverage insurance.

Many factors could affect these variables, such as:

  • The cost of adding full coverage to your car may be much cheaper or more expensive.
  • You can alter your deductible, which will affect both the price of your policy and the value of a claim.
  • The value of your car may vary widely from these examples, though the value will decline each year.

How to get cheap full coverage insurance

In the short term, there are two ways to get cheaper full coverage car insurance: shop around and reduce coverages.

Shopping around allows you to see if different insurance companies rate you differently, with the potential to get the same coverage for a lower price.

Reducing coverages will lower your rates in exchange for less protection from the insurer, but the trade-off may be worth it; it depends on your personal situation and tolerance for risk.

How to shop around for full coverage insurance

The goal of shopping around is to find equivalent insurance protection for a lower price. When comparing policies with different insurers, you should make sure that:

  • You select consistent liability limits. If you shop with an insurer and select $25,000 in bodily injury liability per person, $50,000 in bodily injury liability per accident and $25,000 in property damage liability per accident, you should select the same with comparison insurers.
  • You select the same deductible for comprehensive and collision insurance. Increasing your deductible lowers the cost of your policy and vice versa.
  • You select the same coverage limits for all other coverages, such as uninsured/underinsured motorist coverage, personal injury protection and more. Additional protections cost more money.

If you follow these steps, you'll find that different insurers will offer the same coverage for varying prices. The best and cheapest car insurance company for your neighbor may not be the same as it is for you.

How reducing your coverages can lower your insurance premium

You can also lower your insurance premium by reducing your coverage. For example:

  • You can skip comprehensive and collision insurance. In this case, you'll no longer have a full coverage policy. But the savings will be worth it if you have a low-value car.
  • You can increase your deductible. If you increase your deductible, you'll lower the amount your insurer will pay you for a claim. In exchange, you'll pay a lower premium.
  • You can lower limits for liability and other coverages. If you reduce your liability limits, you're reducing the protection offered by your insurer. You should be aware, however, that you're putting yourself at risk for being unable to use your insurance to cover the total cost of bodily injury or property damage to others if you're at fault for an accident.

However, keep in mind that there is risk associated with decreasing coverages. Although sometimes it may make sense to drop additional coverages that provide unnecessary protection, you also risk insufficient coverage after an expensive accident.

Increasing your deductible increases your out-of-pocket costs when making a claim, so you risk paying more from your savings after an accident. And decreasing liability limits could expose you to unexpected costs if your insurance isn't enough to cover a major accident.


The share of drivers that have comprehensive insurance: By state

Most drivers have comprehensive insurance, but the share of drivers who have this coverage may vary by state. Including comprehensive insurance on your policy can be particularly important if you're in a location with severe weather or high crime rates, as it protects your vehicle from off-road perils such as natural disasters or theft.

The following five states have the largest share of drivers with comprehensive insurance:

State
Share of drivers with comprehensive insurance
New Hampshire93%
Massachusetts91%
Connecticut87%
Florida84%
Illinois84%

In a state like New Hampshire, where car insurance isn't required, those who voluntarily purchase a policy may be more likely to purchase all the coverages available, and thus include comprehensive insurance.

The following five states have the lowest share of drivers with comprehensive insurance:

State
Share of drivers with comprehensive insurance
New Mexico62%
Wyoming65%
Montana65%
Oklahoma67%
Arkansas68%

Given that they're inland, these states may not typically be thought of as natural disaster states in which hurricanes or earthquakes strike. But that doesn't mean comprehensive insurance isn't a good investment for at-risk owners with higher-value vehicles. Oklahoma has an extremely high incidence of tornadoes, Arkansas is at risk from severe weather including heavy storms and New Mexico, Wyoming and Montana are subject to wildfire risk.

All of these perils are covered by comprehensive insurance, and consumers looking to protect a valuable vehicle against these dangers should consider the coverage.

Some of the most notable states for hurricane risk (and other natural disasters) not cited above are California, Texas and Louisiana. In fact, although they don't fall in the bottom five for the share of drivers with comprehensive insurance, drivers in these states have a surprisingly low share compared to the rest of the country.

  • In California, 73% of drivers have comprehensive insurance, placing it 35th of 50 states and Washington D.C.
  • 72% of Louisiana residents have bought comprehensive insurance, ranking it 37th.
  • Texans hold comprehensive insurance 71% of the time, good for 39th in the country.

Despite the myriad of risks in these states — hurricanes, flooding, thunderstorms, fires — many drivers have chosen to skip comprehensive insurance. If you have a valuable car and are in an at-risk area for natural perils, consider comprehensive insurance to protect against the risk of damage to your vehicle.

Below we rank all 50 states and Washington D.C. by the share of drivers with comprehensive insurance.

Rank
State
Share of drivers with comprehensive insurance
1New Hampshire93.3%
2Massachusetts90.7%
3Connecticut87.4%
4Florida84.2%
5Illinois84.2%
Show All Rows

What does full-coverage car insurance cover?

Full coverage policies typically include your state's minimum requirements, plus collision and comprehensive coverage. They may also include uninsured/underinsured motorist coverage and personal injury protection in some states. But the definition of full coverage varies by insurer. Check your state's requirements and your quote to make sure you're covered for what you expect.

Do I need full coverage on a financed car?

Yes, most lenders require you to have a full coverage policy with collision and comprehensive if you have a car loan. Once you pay off your loan, you're free to decide if you still need a full coverage policy.

Does full coverage car insurance replace your car?

If you cause an accident, your collision coverage should cover the full repair costs for your car or pay out the current value if it's totaled. If another driver damages your car in an accident, the other driver's liability coverage would pay for repairs instead.

What's the average cost of full coverage car insurance?

Full coverage car insurance costs $2,399 a year on average, or $200 a month. But some drivers can find rates as cheap as $145 a month from companies like State Farm.

Methodology

We collected quotes from 50 states and Washington, D.C. for 51 insurance companies. Our base driver was a 30-year-old male who drove a 2015 Honda Civic EX, and quotes were drawn from all available ZIP codes in each state. The driver was profiled as having no credit history, making him equivalent to a driver with below-fair to poor credit, according to our data source, Quadrant Information Services.

For the full coverage policy, we gave him coverage limits slightly above any one state's minimum requirements. We also included uninsured and underinsured motorist bodily injury coverage. Comprehensive and collision insurance each had a $500 deductible.

Sample full coverage policy:

Coverage type
Study limits
Bodily injury liability$50,000 per person, $100,000 per accident
Property damage liability$25,000 per accident
Uninsured/underinsured motorist liability$50,000 per person, $100,000 per accident
Comprehensive & collision$500 deductible
Personal injury protectionMinimum when required by state

Our rates for minimum coverage policies represent the average cost of a policy that only meets a state's minimum required auto insurance coverage.

The share of drivers with comprehensive insurance by state was calculated using data from the National Association of Insurance Commissioners Auto Insurance Database Report. Total written exposures for comprehensive insurance were divided by written liability exposures.

ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes may be different.

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.