Mathew B. Sims is Editor-in-Chief and has authored, edited, and contributed to several books. He has been working in the insurance industry ensuring content is accurate for consumers who are searching for the best policies and rates. He has also been featured on sites like UpJourney.

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Benjamin Carr was a licensed insurance agent in Georgia and has experience in life, health, property and casualty coverage. He has worked with State Farm and other risk management firms. Benji is also a strategic writer and editor with a background in branding, marketing, and quality assurance. He has been in military newsrooms — literally on the frontline of journalism.

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Reviewed by Benji Carr
Former Licensed Life Insurance Agent

UPDATED: May 2, 2021

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To Sum It Up

  • Full coverage auto insurance is a combination of liability, collision, and comprehensive coverage.
  • Rental car reimbursement and roadside assistance are perks that are often included in full coverage car insurance.
  • Full coverage insurance is more expensive than the average liability-only policy.

If you want everything your auto insurance company has to offer, buy full coverage auto insurance. Full coverage car insurance is a complete package for drivers who want to maximize their car insurance benefits.

However, full coverage insurance can be costly depending on several factors that determine auto insurance. Knowing the basics of auto insurance can help you save money and secure cheap full coverage auto insurance.

Continue reading our guide to learn more about full coverage auto insurance.

If you want to compare full coverage auto insurance quotes from multiple companies, enter your ZIP code in the free comparison tool above.

What is full coverage auto insurance?

Full coverage car insurance is collision and comprehensive coverage added to your car insurance policy. Some companies call full coverage a myth, but to everyone who purchases auto insurance – it’s known as full coverage.

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How does full coverage auto insurance work?

When you buy auto insurance, you’ll need the minimum auto insurance requirements, which is liability insurance. When you want more perks to your car insurance policy, you can add collision and comprehensive coverage.

Full coverage fully protects your vehicle if you’re at fault or not at fault in an accident. Let’s go through each coverage below, so you can get a better understanding of how full coverage works.

Liability Auto Insurance

Your liability car insurance consists of several coverages. The concept behind liability insurance to provide compensation to the other driver when you’re at fault in a car accident. Some of these coverages are optional in some states, but other states may require them.

Bodily Injury Liability

This part of liability insurance focuses on paying for injuries the other driver has after an accident.

Property Damage Liability

If another party’s vehicle is damaged after an accident, your property damage liability coverage will pay for damages or the car’s total loss.

Uninsured & Underinsured Motorist Coverage

Some states may require you to have uninsured and underinsured motorist coverage. Uninsured motorist coverage pays for injuries and property damage when you’re in an accident with a driver who doesn’t have car insurance.

However, underinsured motorist coverage compensates you when the other party doesn’t have enough on their coverage limit to pay for injuries or damages.

Personal Injury Protection

If you want to reassure that your injuries are taken care of, add personal injury protection (PIP) to your policy. This is a no-fault coverage that pays for lost wages, childcare expenses, funeral costs, and other personal losses after an accident.

Medical Payments

You can take injury protection a step further with medical payments (MedPay). MedPay ensures that you have coverage if PIP doesn’t cover your medical bills or if your bodily injury liability runs out.

Collision and Comprehensive Auto Insurance

You can’t secure full coverage unless you add collision and comprehensive coverage to your auto insurance policy. Collision and comprehensive coverage will increase your auto insurance rates, but the coverage level will be optimal.

Let’s look at a few perks that may be included in your full coverage auto insurance policy.

Other Auto Insurance Coverages

The coverages listed below are other perks that may come with full coverage.

  • Rental Car Reimbursement Coverage – Your auto insurance provider will reimburse you for car rental fees and costs after your car is repaired.
  • Roadside Assistance – Get 24/7 towing and roadside assistance with no extra charge from towing companies.
  • Vanishing Deductible – Every year you’re incident-free, your car insurance company will take $100 off your deductible.
  • Original Equipment Manufacturer (OEM Endorsement) – You can request OEM parts to repair your vehicle instead of aftermarket parts whenever your car is repaired. Your auto insurance company will provide help with OEM costs whenever you get your vehicle repaired.
  • GAP Insurance Coverage – When your full coverage policy won’t pay for the finance company’s payments, GAP insurance will cover the total balance of your car at the finance company or bank.
  • Windshield Coverage – This is usually covered under comprehensive coverage and often comes with a $0 deductible. Your auto insurance provides you with a replacement windshield any time it’s damaged.

Each auto insurance company is different and may provide more or fewer perks when you get full coverage.

How much is full coverage auto insurance per month?

Full coverage auto insurance is determined by age, gender, driving record, vehicle, commute mileage, credit history, company, and location. Speaking of location, the National Association of Insurance Commissioners (NAIC) provides the average cost of full coverage insurance every year.

Let’s look at the latest average full coverage auto insurance rates below.

GEICO vs. State Farm: Average Annual Rates by Age
AgeGEICO Average Annual RatesState Farm Average Annual Rates
20$1,438$2,379
30$1,218$2,379
40$1,189$1,587
50$1,160$1,558
60$1,065$1,485
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Idaho is the cheapest state for full coverage, but Louisiana is the most expensive. Car insurance rates tend to change based on the company that has your policy.

Do I need full coverage auto insurance?

If you plan to finance your car, you’ll need full coverage car insurance. Banks, finance companies, and other lenders need to reassure the asset, so they require that you carry full coverage.

When a driver has full coverage but doesn’t carry enough on the coverage limits, the lender will put the financed vehicle under force-placed insurance, reassuring that the lender is paid if the car is in a total loss accident.

When should I get rid of full coverage auto insurance?

Older vehicles are more than likely eligible. Sometimes a vehicle’s worth is five times less than the minimum requirements for auto insurance.

If a vehicle’s repairs are more than what the car is worth, you may want to drop collision and comprehensive coverage. Dropping full coverage can save you about $40 per month on average.

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Full Coverage Auto Insurance: The Bottom Line

Despite the $86 average reported by the NAIC, you could end up paying more for full coverage because of the factors that determine car insurance. However, discount car insurance can provide cheaper costs close to NAIC projections.

Start comparing multiple companies and get full coverage auto insurance quotes by entering your ZIP code in the free online quote tool below.