What Is Full Coverage Car Insurance? Coverage, Benefits and When to Drop It
Full coverage insurance typically includes liability, collision and comprehensive coverage.
So it pays to fix your car after an accident, along with any damage or injuries you cause.
Full coverage is a good choice if you have a new or expensive car, or you want to avoid paying for expensive repairs after an accident. Plus, most lenders require full coverage if you have a car loan or lease.
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What does full coverage car insurance include?
The phrase "full coverage" gets used a lot, but there isn’t one standard definition.
For most people, it means liability coverage plus collision and comprehensive. Some companies also include extras, like roadside assistance or rental car reimbursement.
Full coverage almost always includes:
- Property damage liability: Pays to repair cars you hit or damage you cause
- Bodily injury liability: Covers medical bills for the people you hurt
- Comprehensive and collision: Pays to fix your car after most accidents, regardless of who caused the damage
It can also come with extras, such as roadside assistance, rental car reimbursement, uninsured motorist coverage, personal injury protection (PIP) or other add-ons you pay for.
Benefits of full coverage auto insurance
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Pays to fix or replace your car after a crash, even if it's your fault
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Pays for damage outside of your control, like hail, theft or hitting a deer
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Meets your loan or lease requirements
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Can have higher liability limits than the state average
Can include helpful coverage extras, such as rental reimbursement coverage
What's the difference between full coverage and liability-only?
Full coverage car insurance means you're covered for pretty much any damage that happens to your car, like if you crash into someone or a tree branch falls on your roof.
A liability-only policy, also called minimum coverage, only pays for the damage you cause to others. It won't pay to fix your car when you cause an accident. Liability-only coverage may include extras like uninsured motorist coverage or personal injury protection if they're required in your state.
Full coverage vs. liability-only coverage
Full coverage | Liability-only | ||
|---|---|---|---|
| Bodily injury liability | ||
| Property damage liability | ||
|
| Comp. and collision | ||
| Extras | ||
| Cost | $175/mo | $69/mo |
Some insurance companies include coverage extras, like roadside assistance, with their full coverage insurance.
Full coverage | Liability-only | |
|---|---|---|
| Bodily injury liability | ||
| Property damage liability | ||
| Comp. and collision | ||
| Extras | ||
| Cost | $175/mo | $69/mo |
Does full coverage include comprehensive and collision?
Full coverage insurance includes comprehensive and collision coverage.
These types of insurance pay to fix or replace your car if you cause an accident or it's damaged by something outside your control, such as hail or vandalism. This can help you avoid unexpected repair bills in the future.
Comprehensive and collision are typically optional. But your lender usually requires you to get these coverages if you lease or finance your car.
Collision insurance
Collision insurance pays to repair damage to your car from an accident, no matter whose fault it was. This means that your insurance company will repair or replace your car even if you cause a crash.
You can also use your collision insurance if someone hits you. This could come in handy if you're in a hit-and-run and can't identify the other driver. Outside of this scenario, it's usually a better idea to file a claim with the other driver's insurance.
The downside to collision insurance is that it's usually the most expensive part of car insurance. It accounts for about one-third of the total cost of a full coverage policy.
You can reduce the price of your collision premium by choosing a high deductible. This means you'll pay less each month for insurance, but you'll pay more when you file a claim after an accident. Deductibles usually range from $50 up to $2,000.
Comprehensive coverage
Comprehensive coverage pays to fix your car if it's damaged by something outside of your control. This includes things like a branch falling on your car, vandalism, a baseball going through your windshield or a collision with an animal.
What's the difference between full coverage and comprehensive?
A full coverage policy includes many types of coverage. Comprehensive is a type of coverage typically included in a full coverage policy.
Comprehensive coverage costs far less than collision. This is probably because the average comprehensive claim costs less than a collision claim. For example, a tree branch falling on your windshield is cheaper to fix than a head-on collision.
Like collision insurance, you can also save on comprehensive coverage with a lower deductible.
Policy extras
Full coverage policies can also include add-ons like roadside assistance or rental car reimbursement. Some companies won't offer certain add-ons unless you have full coverage.
Does full coverage include liability insurance?
Yes, full coverage car insurance always includes at least the minimum amount of car insurance required by your state. You can also choose higher liability limits for more protection.
There are two main types of liability insurance:
- Bodily injury (BI) pays for injuries you cause to other people.
- Property damage (PD) covers damage to other cars or structures, like a pole or building.
Neither coverage pays for damage to your vehicle.
Uninsured or underinsured motorist insurance
Uninsured motorist coverage covers your medical bills and damage to your car if an uninsured driver hits you. In some states, you must have uninsured or underinsured motorist coverage to drive legally. The amount is usually the same as your liability coverage.
In most cases, the other driver would have insurance, and you would file a claim through their company. If they don't have insurance, you use your own uninsured motorist coverage instead.
- Uninsured motorist property damage (UMPD) pays to fix your car when the person who hit you doesn't have insurance.
- Uninsured motorist bodily injury (UMBI) pays for your injuries if an uninsured person causes a car accident.
Underinsured coverage helps bridge the gap if the other driver doesn't have enough insurance.
For example, say another driver causes $25,000 worth of damage to your car, but they only have $10,000 worth of property liability coverage. In this case, the other driver's insurance pays $10,000 of the repair bill. Then your underinsured motorist coverage pays the remaining $15,000.
The chance of getting in an accident with an uninsured driver is small. For instance, just 1 in 200 accidents in Wisconsin involved uninsured drivers in 2022.
This is part of the reason why uninsured and underinsured coverage is one of the cheapest parts of "full coverage."
Personal injury protection and medical payments coverage
Personal injury protection (PIP) pays for your injuries, regardless of who caused the accident. It can also help cover your lost income if you can't work while recovering.
That means if you or your passengers are hurt in a crash, your PIP insurance will pay the medical bills.
Personal injury protection is required in 12 states. In the other 38 states, you can get optional coverage called medical payments coverage, or MedPay.
MedPay is similar to PIP insurance, except that it doesn't cover lost income. MedPay is required in Maine, New Hampshire and Pennsylvania.
How to know if you have full coverage auto insurance
To find out if you have full coverage insurance, you can check your declarations page for collision and comprehensive coverage. You can find your declarations page by logging into your insurance company's website. You should also have a printed copy that comes with the paperwork your company sent when you started or renewed your coverage.
You can also call your car insurance company and ask whether you have these coverages.
How much does full coverage cost?
Full coverage car insurance costs an average of $175 per month nationally — two and a half times the cost of a minimum liability policy.
For example, in Illinois, it costs about $89 per month for a liability policy with bodily injury, property damage and uninsured/underinsured motorist coverage.
Collision and comprehensive cost an extra $101 per month. Other popular add-ons — including medical payments, rental reimbursement and roadside assistance — cost around $13 per month.
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Breakdown of full coverage insurance costs
Coverage | Monthly cost |
|---|---|
| Collision | $69 |
| Bodily injury liability | $49 |
| Property damage liability | $33 |
| Comprehensive | $32 |
| Rental reimbursement | $7 |
Where you live is also a key factor in how much more you'll pay for full coverage versus minimum coverage. This is because of state laws, the chance of getting into an accident and other regional factors.
Difference in monthly full coverage and liability-only rates by state
State | Full coverage | Liability-only | Difference |
|---|---|---|---|
| Alabama | $194 | $76 | $118 |
| Alaska | $141 | $45 | $96 |
| Arizona | $218 | $91 | $127 |
| Arkansas | $193 | $60 | $133 |
| California | $168 | $58 | $110 |
Do I need full coverage on my car?
You usually need full coverage if you have a car loan or lease. If you own your car, it's not required. But it may be a good idea if your finances make extra protection important.
If you have an auto loan or are leasing your car, your lender probably requires you to have full coverage insurance.
Full coverage ensures you'll have enough money to fix or replace your car after an accident. This is important to your lender because they have a financial stake in your car, so they want to make sure it keeps its value, even after a crash.
If you would have a hard time coming up with the money to fix or replace your car after a bad crash, full coverage car insurance is a good idea.
The average collision claim was $6,150 in 2022. So if you cause an accident and don't have full coverage, you'll pay about $6,000 to fix your car. That's a large and unexpected repair bill. Your total costs could be even higher if you miss work because you can't get there.
If adding collision and comprehensive to your policy costs around $100 per month, it would take five years of saving that extra payment to afford the repairs from an average accident.
When should you drop full coverage on your car?
If your car is more than 10 years old or worth less than $5,000, it may be time to drop full coverage.
A good rule of thumb is that when your car's value drops to the cost of 4-6 years' worth of comprehensive and collision, it's usually a better deal to drop full coverage and pay for any damage yourself.
However, it depends on your financial situation. If you don't have a savings cushion, you may prefer a policy with more coverage. That way, you know the insurance company will pay for any damage.
How to get affordable full coverage car insurance
Full coverage is expensive, but there are several things you can do to save.
Raise your deductible for collision and comprehensive. Increasing your deductible from $500 to $1,000 can save you about $240 per year.
Cost of collision and comprehensive by deductible
Deductible | Monthly cost |
|---|---|
| $250 | $117 |
| $500 | $98 |
| $1,000 | $78 |
| $1,500 | $68 |
Look for discounts. Insurance companies offer discounts for things like being a safe driver, being a good student or taking a driver's education course. Taking advantage of these can save you up to 20% on your yearly bill.
Compare insurance companies. Shopping around for multiple quotes can save you thousands every year on your car insurance bill.
Frequently asked questions
What does full coverage car insurance cover?
A full coverage policy pays to fix your car if you cause an accident or it's damaged by weather, theft or other events outside your control. It also covers damage you cause to other cars and other people's injuries. Sometimes, full coverage also includes personal injury protection or uninsured motorist coverage.
Is full coverage worth it?
Full coverage car insurance is usually worth it if your car is worth more than $5,000 or less than 10 years old. It's also a good idea if you're worried about how you would afford to replace or fix your car after a serious accident.
Is it worth having full coverage on an old car?
It's not typically worth it to have full coverage insurance on your older car. That's because it will probably cost more in the long run to pay for collision and comprehensive coverage each month than insurance will pay out if you're in an accident.
Methodology
Full coverage rates are for a 30-year-old man with good credit and a clean driving record who owns a 2015 Honda Civic EX. National averages include quotes from every residential ZIP code across all 50 states.
Full coverage rate breakdowns are based on thousands of insurance quotes from ZIP codes across Illinois for the largest insurance companies. Quotes include collision and comprehensive coverage, higher liability limits than the state requirement, along with other coverage add-ons.
- Bodily injury liability: $50,000 per person and $100,000 per accident
- Property damage liability: $25,000 per accident
- Uninsured or underinsured motorist bodily injury: $50,000 per person and $100,000 per accident
- Comprehensive and collision: $500 deductible
- Medical payments: $5,000
- Rental reimbursement: $50 per day, $1,000 per accident
- Roadside assistance: $500
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.
Senior Writer
Lindsay Bishop is a Senior Writer at ValuePenguin, where she educates readers about home, auto, renters, flood and motorcycle insurance.
Lindsay began her career in the insurance and financial industry in 2010. She was a licensed auto, home, life and health insurance agent and held Series 6 and 63 financial licenses.
After a hiatus from the financial sector, Lindsay returned to the industry as a content writer for ValuePenguin in 2021. She enjoys having the opportunity to help readers make smart decisions about their insurance so they can be prepared for anything life throws their way.
When Lindsay isn't writing about insurance, you can find her spending time with family, enjoying the outdoors on Sunday long runs or riding her Peloton.
How insurance helped Lindsay
As a homeowner for 15 years located in South Carolina, Lindsay has plenty of experience navigating the coastal insurance market and managing the claims process. That includes successfully negotiating a full roof replacement claim.
Expertise
- Home insurance
- Car insurance
- Flood insurance
- Renters insurance
- Motorcycle insurance
Referenced by
- CNBC
- Yahoo Finance
- Miami Herald
Education
- BS/BA Economics, University of Nevada Las Vegas
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.
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Full coverage: $175/mo
Liability only: $69/mo