The idea of "full coverage" auto insurance where you have total protection for your car or truck would be great. But what does "full coverage" mean for car insurance? Also, why can this term be misleading when selecting the right coverage for your vehicle?
To start, there's no standard definition of "full coverage" for car insurance. Car insurance isn't a one-size-fits-all purchase and a car insurance policy should be customized to fit your needs. A few things to consider are how much coverage you need to protect your property and assets. Based on your situation, your version of full coverage insurance may differ from someone else's.
For help finding what works best for you, check out our Coverage Calculator.
What coverages make up an auto insurance policy?
Auto insurance policies have state-required coverages which include limits you're legally required to have. Then there are optional coverages and coverage limits. The coverages and limits of coverage vary by state. Want to know more about your state? Check out the state information pages.
Common Car Insurance Coverages
Some car insurance coverages are required by your state. Although you must have the minimum limits; you can choose higher limits so your policy will fit your needs.
Liability Coverages
Most states require you buy liability coverage. It includes coverage for bodily injury and property damage. These coverages help provide protection if you're at fault in an accident and cause injury or damage to another person or their property.
Uninsured/Underinsured Motorist Coverage
Uninsured motorist coverage helps protect you if you're involved in an accident with someone who doesn't have liability insurance. Underinsured motorist coverage helps protect you if you're involved in an accident with someone who doesn't have enough insurance to pay for your damages. These coverages may help cover your injuries or property damage.
These coverage requirements and options can vary widely by state. We can help you determine what is required by your state. You may also find information on our state information pages.
Medical Coverages
Medical payments or personal injury protection coverage are the most common medical coverages. These coverages may assist with medical expenses for you, relatives, and possibly passengers as a result of an accident. The states determine which coverages are offered and have different rules about who and what is covered. We can help you determine what is required by your state. You may also find information on our state information pages.
There are other coverages that are not required by your state but can provide you with additional protection. If your vehicle is financed or leased, your lienholder may require you to carry collision and comprehensive coverage on your policy to protect their interest.
Collision Coverage
Collision helps repair your vehicle when it hits or is hit by another vehicle or object. You can use collision whether you're at fault or not.
Comprehensive Coverage
Comprehensive is coverage for damage to your vehicle. It covers your vehicle in the event of a theft or vandalism. It can also help with losses resulting from flood, hail, and when you hit an animal.
Additional coverages help you personalize your car insurance policy. You may want rental reimbursement to help with rental expenses due to a covered loss. Emergency road service can help provide roadside assistance for tire changes, jump starts, or a tow if necessary.
Check out the car insurance coverage information page to learn more about these and other available coverages.
How can I customize my car insurance policy to best meet my needs?
Even though you must have the state required coverage, you can still customize your policy. You may decide to carry higher limits than the state minimums for extra protection.
You can also select your deductible amounts on certain coverages. Or, you can add coverages to help with roadside assistance, rental, or even mechanical breakdown. You may also want to consider an umbrella insurance policy.
How much does "full coverage" car insurance cost?
As we mentioned before, there is no standard definition of "full coverage" car insurance. We can help you make sure your policy meets your state's requirements along with your individual situation.
Your premium is affected by the types of coverages, limits, and deductibles you choose. If you are comparing car insurance rates, it is important to keep this in mind.
If you decide to carry higher limits than required by the state, the cost of your policy will probably be more than someone with the minimum limits of coverage. Or, if you choose a higher deductible, the cost for those coverages is normally lower than if you carry a lower deductible.
Please note:
The above is meant as general information and as general policy descriptions to help you understand the different types of coverages. These descriptions do not refer to any specific contract of insurance and they do not modify any definitions, exclusions or any other provision expressly stated in any contracts of insurance. We encourage you to speak to your insurance representative and to read your policy contract to fully understand your coverages.
Despite the popularity of the term, there is no policy called “full coverage auto insurance.” When lenders use this term, they typically are referring to building a dependable auto insurance package that provides coverage for a variety of different circumstances.
Nationwide car insurance can cover you for accidents involving other vehicles, vandalism, weather, animals, bodily injuries and more. Our policies are customizable – you can choose the auto insurance policies that suit your lifestyle. You can have peace of mind knowing Nationwide will provide you and your car with great protection on and off the road.
Despite the popularity of the term, there is actually no policy called “full coverage auto insurance.” In other words, insurance providers do not offer an auto insurance policy that covers everything.
However, what is considered full coverage auto insurance by some is the combination of comprehensive insurance, collision insurance and liability insurance. You might also hear people use the terms comprehensive insurance and full coverage insurance interchangeably, even though this is not technically correct. That being said, it’s important to be informed about what various insurance policies cover so you can choose the combination of coverages that’s right for you.
Since “full coverage” isn’t a policy type currently offered, it doesn’t technically cover anything. However, a reliable insurance package that protects you and your passengers can be built from the following three coverages:
- Liability Insurance, which covers costs for the other party’s injuries and repairs in the event of a covered accident in which you’re found at fault.
- Collision insurance, which can cover damage to your vehicle if you are found at fault in a collision, but it does not cover the other party’s vehicle or anyone’s bodily injuries.
- Comprehensive insurance, which covers certain damages to your vehicle that are not caused by a collision with another car (for instance, accidents related to weather, theft, fire and more).
The range of incidents covered by these three insurance types make them a very good starting point for a “full” coverage package; however, the security of your auto insurance depends on many factors, including your policy limits and the deductible amounts you decide on. Furthermore, drivers may also choose additional coverages such as personal injury protection, medical payments coverage, uninsured motorist coverage, underinsured motorist coverage or gap insurance. Our classic car insurance can also provide specialized coverage designed for the unique needs of vintage and classic car collectors.
Insurance providers don’t offer “full coverage,” but you can still build a dependable auto insurance package that protects you in the event of many incidents on and off the road. Naturally, the more coverages you select, the higher your monthly bill. However, there are still plenty of variables that affect your insurance costs, including:
- Your age
- Your location
- Your driving record
- The kind of car you drive
- The policy type(s) you choose
- Your deductible
- Your policy limit(s)
So, how much does full coverage car insurance cost? The answer depends partially on you and your history, as well as the type and amount of insurance you choose. For more information, check out our breakdown of how much car insurance costs. Keep in mind that Nationwide offers a range of discounts for our members – you could save hundreds on your annual bill
Despite the fact that full coverage insurance is a myth, you can still build an insurance package that protects you in the event of an unexpected incident. Start a free online quote from Nationwide and choose the coverages that are right for you today.
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
Full coverage car insurance costs more than a policy with only your state’s minimum car insurance requirements. However, that added coverage can play a vital role if you get into a car crash.
That’s because full coverage insurance helps pay car repair bills if you get into an accident and medical bills if you cause an accident that injures others. A good car insurance policy can help set your mind at ease.
What Is Full Coverage Car Insurance?
The term “full coverage car insurance” does not refer to a special policy type, but rather it refers to a policy that consists of liability, collision and comprehensive insurance. These three coverage types make for a solid foundation for a car insurance policy.
Some states also require additional coverage types, such as personal injury protection and uninsured motorist coverage.
There are other coverage types you might want for the best car insurance, such as rental reimbursement coverage in case your vehicle is in the shop after an accident.
Full Coverage Car Insurance Summary
What Does Full Coverage Car Insurance Cover?
Full coverage car insurance typically consists of three separate components: Liability insurance, collision insurance and comprehensive insurance. Here’s a breakdown of how each coverage type works.
Liability insurance
All states except New Hampshire require car owners to purchase a minimum amount of liability car insurance. These minimum state requirements outline two types of liability insurance:
- Bodily injury liability insurance covers the medical expenses of another party if you’re at fault.
- Property damage liability insurance covers damage done to another person’s property that you crashed into. This could include someone else’s car, mailbox, fence, garden gnome collection or building.
Here’s an example of how liability car insurance works.
If you cause a car accident that results in physical damage to the other driver’s car and injuries, the other driver can make a claim against your liability insurance for car repair bills and medical expenses. Your liability insurance would also pay for your legal defense, settlements and judgments if the other driver sues you.
But if you don’t carry enough liability car insurance, you could be on the hook for any amount that’s above your policy limit. That’s why it’s important to purchase more than your state’s minimum car insurance requirements. For example, if you cause a car crash with multiple injuries, the medical bills could quickly exceed the minimum liability requirements.
Consider at least liability limits with $100,000 in bodily injury liability per person and $300,000 per accident, and at least $100,000 for property damage liability. This is typically written as 100/300/100 in car insurance policies.
Drivers with high incomes and/or significant assets should consider higher amounts in case someone decides to sue, plus umbrella insurance.
Does liability insurance cover my car if someone else hits me?
Your own liability insurance only pays others for damage you cause. It will not pay anything for your own car or your injuries.
If someone else causes an accident, their liability insurance should cover your car damage and injuries. But the other person’s insurance will only pay up the limits they bought. If the accident was expensive, their insurance may not be enough to cover all your bills.
In addition, many drivers hit the road without any auto insurance. If they crash into you, they have no insurance to pay for the damage they cause. You can sue another driver who causes a crash, but not all drivers have assets to use to pay for a lawsuit judgment.
Collision and comprehensive coverage
Collision and comprehensive coverage are important for covering damage to your own car. Your liability insurance won’t pay for any of your vehicle damage. If you own your vehicle outright then this coverage is optional. Expect to have to buy them if you have a car loan or lease.
Collison covers pay for damages to your car from crashes with any object, such as a pole or guardrail. Comprehensive coverage pays for car theft and repairs due to weather, animal damage, vandalism, fire, flood and falling objects
For example, let’s say your car tires skid on ice and you crash into your neighbor’s fence. Collision coverage would pay for the repairs to your vehicle. Liability insurance would pay for the neighbor’s fence.
If you drove across a flooded street without realizing how deep it was, comprehensive coverage could pay for car flood damage.
Collision and comprehensive coverage both have a deductible, such as $500 or $1,000. That’s the amount of money deducted from an insurance check if you make a claim.
How Much Does Full Coverage Car Insurance Cost?
Nationally, the average full coverage car insurance policy costs about $1,190 per year, according to the National Association of Insurance Commissioners.
The liability portion of an auto insurance policy is generally the most expensive component.
What Other Coverages Can Be Included in a Car Insurance Policy?
Building the best auto insurance policy usually requires adding a few more options to full coverage car insurance: Uninsured motorist coverage and personal injury protection. These types cover injuries to you and your passengers in different ways. They are required in some states.
Uninsured motorist coverage
Uninsured motorist coverage helps safeguard you against folks who are on the road with no auto insurance. Typically, if you’re injured in a car accident where the other driver is at fault, their liability coverage should cover your medical expenses. But if the other driver is uninsured, uninsured motorist coverage would cover your medical bills.
A similar coverage, underinsured motorist coverage, pays your medical bills when the other driver is at-fault but doesn’t have enough liability insurance to cover your costs.
As with other kinds of auto insurance, these types pay up to the limit you have chosen. Buying low limits can mean you still have unpaid bills after an expensive car accident.
Medical payments coverage and personal injury protection
Medical payments coverage (MedPay) covers medical expenses of you and your passengers no matter who was at fault. This can include an ambulance, surgery and X-rays. It’s not available in all states.
Personal protection coverage (PIP) will also help cover medical expenses no matter who was at fault. Some states require PIP insurance. In other states, it’s optional or not offered. PIP insurance can also pay for lost wages and for hiring help for tasks you can’t do because of an accident, such as child care.
Auto insurance extras
Rental reimbursement coverage
If your vehicle is out of commission because it’s in the repair shop, you may have to rent a car. Rental reimbursement auto insurance helps cover the cost of a rental car if the repairs are being covered under your insurance.
Usually, rental car reimbursements have daily and maximum limits under this coverage. So make sure you understand the reimbursement limit before you rent a luxury SUV for a week. If you exceed the rental coverage limit, you can pay the difference yourself.
This is not the same as rental car insurance, which covers cars you rent for vacations and other non-accident purposes. You can usually get that coverage as part of a car insurance policy, through a rental car company or with the credit card you use for a rental.
Roadside assistance
Roadside assistance insurance can pay for services such as help changing a tire, bringing you gas or lock-out assistance. If you already have roadside assistance from your car maker or a AAA membership, you don’t need this insurance.
Gap insurance
If your car gets totaled (or stolen) and you make a collision or comprehensive claim, your insurance company will pay you a settlement based on the actual cash value (ACV) of the vehicle. But this settlement may not be enough to pay off your auto loan or lease balance. This could leave you upside-down on your loan or lease.
If you have gap insurance, it will cover the difference between the settlement and the amount you still owe on the vehicle. Some lenders require gap insurance if you financed the car. If you have a lease, it might already be included in the cost.
Cheapest Companies for Full Coverage Car Insurance
Car insurance rates for the same coverage vary widely among insurance companies. That’s true whether you’re looking to buy your state’s minimum requirements or get full coverage. The best way to find a good policy at a decent price is to compare car insurance quotes.
Here are the average rates for full coverage car insurance.
As you can see, you could potentially save hundreds of dollars each year by shopping around. The best cheap car insurance companies have competitive rates for a variety of drivers, like good drivers, drivers with poor credit, drivers with a speeding ticket and drivers with an at-fault accident on their driving records.
How to Get Cheap Full Coverage Car Insurance
No matter what auto insurance options you choose, you don’t want to overpay. Here are ways to lower your bill and find affordable full coverage car insurance.
Price shop
Before you purchase a policy, shop around for car insurance quotes. Make sure your quotes include the same coverage types and limits so that you’re comparing apples-to-apples costs. Comparison shopping alone can potentially save you hundreds of dollars.
Take higher deductibles
An car insurance deductible is the amount deducted from an insurance check. Collision and comprehensive insurance have deductible choices such as $500, $1,500 and $2,000. When you raise your deductible amount you should save some money. There’s no deductible on liability insurance.
Maintain good credit if possible
Many auto insurance companies use credit as a factor in pricing policies. They use a credit-based insurance score, which is slightly different from a regular insurance score. Insurers believe that credit can be used to predict whether you’ll make claims. Improving your overall credit history should in turn improve your credit-based insurance scores. Not all states allow insurers to use credit-based insurance scores.
Take advantage of discounts
Car insurance discounts for bundling multiple policies and insuring more than one vehicle are common. You’ll also likely find low mileage discounts, safe driver discounts and price breaks for everything from going paperless to setting up automatic EFT payments.
Your car insurance policy is only as good as your next claim. If you’ve bought minimal coverage you can find yourself stuck with repair and medical bills to pay out of pocket. Buying ample car insurance is a way to protect the financial future you’re building.
Is a Full Coverage Policy Worth It?
Full coverage car insurance offers you the most protection. It goes beyond state minimum liability insurance. Having full coverage car insurance gives you much better financial protection than buying only the state minimum for liability insurance.
Liability car insurance alone won’t cover your own vehicle from problems, such as hitting an object, floods, fire and car theft.
If your car isn’t worth much, you may decide to skip comprehensive and collision coverage. But if you decide to go with liability-only car insurance only, you should realize that you won’t get help from your insurance company if your car is damaged. Instead, you have to pay for any repairs if you’re in an accident and won’t get any compensation if a thief steals your car.
With so many choices for car insurance companies, it can be hard to know where to start to find the right car insurance. We've evaluated insurers to find the best car insurance companies, so you don't have to.
Full Coverage Car Insurance FAQ
It’s unlikely that you can get away with not carrying full coverage on a financed car.
If you have a car loan or lease, the lender or leasing company will require you to have collision and comprehensive insurance. That’s to protect their interests. They don’t want you to walk away from the loan or lease if the vehicle is destroyed or stolen.
Dropping collision and comprehensive coverage from a financed car could default the loan.
If you took out a loan or lease to buy a new car, your lender or leasing company will most likely require that you carry full coverage car insurance.
But even if you don’t have a loan or lease on a car, every state except New Hampshire and Virginia requires you to carry the state’s minimum for liability insurance. It’s a good idea to buy more than your state’s minimum. A rule of thumb is to buy enough liability insurance to cover what you could lose in a lawsuit.
If you want coverage for problems like car accidents (that you cause), car theft, vandalism, floods, fire, falling objects (like tree branches) and collisions with animals (like deer), then you’ll need collision and comprehensive insurance. If you don’t buy these coverage types, you’ll be stuck paying out of pocket if your car is damaged by one of these problems.
Full coverage car insurance includes liability insurance, as well as comprehensive and collision coverage.
Liability insurance covers the cost of the other party’s injuries and/or car repairs from an accident where you’re at fault. It also pays for your legal defense if you’re sued over the car accident.
Comprehensive and collision insurance pays for your car’s damage if it’s in an accident (collision) or in a non-crash-related incident (comprehensive). Comprehensive coverage also pays out if your car is stolen.
If you cause an accident, liability-only car insurance won’t pay for any damage to your vehicle or injuries to you or your passengers.