Choosing the right insurance coverage is crucial when owning a vehicle. While most states require a minimum amount of liability coverage, you can enhance your protection by opting for full coverage car insurance. Although “full coverage” has no official definition, it typically includes the state-mandated minimum coverage plus collision and comprehensive insurance, which help pay for damages to your own car. It may also include additional features like personal injury protection or roadside assistance. On average, a full coverage policy in the U.S. costs $2,314 annually, while minimum coverage averages $644.

What is full coverage car insurance?

Full coverage car insurance provides protection for damage to your vehicle, which is not covered by the minimum insurance mandated by your state if you cause an accident.

Most states require at least minimum levels of liability coverage, and some also mandate additional types like personal injury protection (PIP) or uninsured motorist coverage. Liability insurance covers damage and injuries others incur in an accident you cause.

While “full coverage” is not an official term, it generally includes the following coverage types:

  • Bodily injury liability: Helps pay for medical expenses of other drivers or passengers if you are at fault in an accident.
  • Property damage liability: Helps pay to repair or replace another driver’s vehicle or other property you damage in an accident.
  • Collision: Covers repairs or replacement of your vehicle if you collide with another vehicle, tree, or pole.
  • Comprehensive: Covers damage to your vehicle from theft, vandalism, storms, or animal damage.

These are the basic components of a full coverage auto policy. However, “full coverage” definitions may vary by insurer or agency. Some companies may include the following coverage types in a full coverage policy or even in a minimum coverage policy if required by state law:

  • Uninsured and underinsured motorist: Covers your injuries and your passenger’s injuries if you are hit by a driver without sufficient insurance. Some states also offer uninsured motorist property damage coverage.
  • Medical payments or personal injury protection (PIP): Pays for medical bills and lost wages for you and your passengers, regardless of fault. PIP may also cover certain household services. Some states require this coverage by law.
  • Roadside assistance: Optional coverage for towing, lockout services, tire changes, battery jump starts for gas-powered vehicles, and battery charges for electric vehicles.
  • Car rental reimbursement: Optional coverage that pays for a rental vehicle if your car is undriveable due to a covered loss.

Choosing the right coverage is essential for ensuring you have adequate protection for your vehicle and finances.

How much does full coverage insurance cost?

The average cost of a full coverage auto policy in the United States is $2,314 per year. Full coverage is generally much more expensive than minimum coverage car insurance, which averages $644 per year. However, full coverage offers greater financial protection by covering damage to both the other party and your own vehicle. Although the premiums are higher, your financial health is better safeguarded with full coverage.

If you’re seeking affordable full coverage insurance, consider several factors that influence the cost. These include the insurance company you select, your state of residence, your driving history, the type of vehicle you drive, and the coverage limits and deductibles you choose.

Average cost by insurance company

Car insurance companies assess various personalized factors to determine your premium, including your driving history and the type of vehicle you drive. While full coverage car insurance generally costs more than minimum coverage, the rates can vary significantly between insurers. To ensure you’re getting a competitive price, it’s advisable to obtain quotes from multiple car insurance providers.

CompanyAverage annual premium for full coverageAverage annual premium for minimum coverageDifference
Allstate$2,971$677$2,294
American Family$1,839$593$1,246
Amica$2,664$674$1,990
Auto-Owners$1,639$420$1,219
Erie$1,694$558$1,136
Farmers$2,838$955$1,883
Geico$1,741$459$1,282
Nationwide$1,853$752$1,101
Progressive$1,988$571$1,417
State Farm$2,364$702$1,662
USAA$1,695$434$1,261

Average insurance cost by state

Auto insurance rates for full coverage can vary widely from the national average of $2,314. For example, in Florida, the average annual premium is $3,579, while in Vermont, it’s just $1,380. Comparing your current policy to the average rates in your state may provide a more accurate gauge of whether you’re getting a good deal.

StateAverage annual premium for full coverageAverage annual premium for minimum coverageDifference
Alabama$2,116$514$1,602
Alaska$2,336$498$1,838
Arizona$2,536$792$1,792
Arkansas$2,080$437$1,643
California$2,663$647$2,016
Colorado$2,796$576$2,220
Connecticut$2,280$843$1,437
Delaware$2,414$910$1,504
Florida$3,579$1,173$2,406
Georgia$2,718$814$1,904
Hawaii$1,650$413$1,237
Idaho$1,339$319$1,020
Illinois$2,083$575$1,508
Indiana$1,679$415$1,264
Iowa$1,725$324$1,401
Kansas$2,489$582$1,907
Kentucky$2,603$784$1,819
Louisiana$3,625$956$2,669
Maine$1,520$386$1,134
Maryland$2,582$1,009$1,573
Massachusetts$1,667$467$1,200
Michigan$2,963$999$1,964
Minnesota$2,203$677$1,526
Mississippi$2,095$500$1,595
Missouri$2,517$653$1,864
Montana$2,319$379$1,940
Nebraska$2,119$513$1,606
Nevada$2,997$913$2,084
New Hampshire$1,700$435$1,265
New Jersey$2,239$914$1,325
New Mexico$2,270$528$1,742
New York$3,751$1,605$2,146
North Carolina$1,713$498$1,215
North Dakota$1,722$364$1,358
Ohio$1,529$389$1,140
Oklahoma$2,585$519$2,066
Oregon$1,877$773$1,104
Pennsylvania$2,607$495$2,112
Rhode Island$2,875$862$2,013
South Carolina$1,852$627$1,225
South Dakota$2,096$329$1,767
Tennessee$1,897$477$1,420
Texas$2,637$760$1,877
Utah$2,036$747$1,289
Vermont$1,380$313$1,067
Virginia$1,892$635$1,257
Washington$1,574$493$1,081
Washington, D.C.$2,488$796$1,692
West Virginia$1,926$499$1,427
Wisconsin$1,694$416$1,278
Wyoming$1,667$263$1,403

Is full coverage insurance worth it?

Everyone’s financial situation varies, but full coverage car insurance often proves beneficial. It’s generally recommended if your vehicle is new, costly, or if you lack the funds to repair or replace it in case of damage or total loss. Full coverage is also advisable if you’re at higher risk of damage, such as with a teen driver.

Additionally, if you have a loan or lease on your vehicle, full coverage is typically required. Financial institutions mandate this coverage because they retain an ownership interest in the car until the loan is repaid or the lease is fulfilled. This ensures that the lender can recover the balance of the loan or lease if the vehicle is totaled.