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Full coverage insurance is an insurance policy that protects your vehicle from accident-related and non-accident-related damage, ensuring you are covered regardless of fault. Full coverage insurance often consists of collision insurance, comprehensive insurance, and at least the minimum coverage required by state law.
“Full coverage” is a term that is more commonly used by consumers than actual car insurance companies. Because of this, there are some varying definitions.
Common Definitions for Full Coverage
- Policies that include liability, collision, and comprehensive coverage
- Policies that have the state-minimum insurance plus any coverage required by a lender or lessor
- Policies that provide anything more than the minimum required liability coverage
- Policies that cover anything and everything in the event of an accident
Although the definition of full coverage insurance may be different depending on whom you ask, the definition shouldn’t matter too much. You should always decide what car insurance to purchase, and how much, based on your own individual coverage needs as well as your budget.
Full coverage insurance costs can vary wildly depending on your state and what car you drive, since coverage types like collision and comprehensive are based on a car’s actual cash value. To learn more, check out WalletHub’s guide to full coverage car insurance and compare the cheapest full coverage car insurance companies.
People also ask
What is the difference between full coverage and comprehensive insurance?
The difference between full coverage and comprehensive insurance is that a full coverage policy includes both comprehensive insurance and collision insurance, along with any car insurance coverage your state requires. Comprehensive insurance covers damage to a car from things other than accidents, like theft or fire.
Comprehensive Only Provides Partial Coverage
Comprehensive insurance mostly covers events outside of a driver’s control, or incidents that happen when a car is parked. For instance, it covers...
read full answer by WalletHub, Financial CompanyWhen should you drop full coverage on your car?
You should drop full coverage insurance on your car when the cost of the insurance equals or exceeds the potential payout, should a covered event occur. You may also want to drop full coverage if you are willing to pay for repairs out of pocket, or if you would prefer to replace your vehicle if it’s damaged.
For example, an older car with high mileage may not be worth costly repairs, and you might want...
read full answer by WalletHub, Financial CompanyHow much is full coverage insurance?
Full coverage insurance costs $1,997 per year or $166 per month, on average. Full coverage car insurance is more expensive than the legal minimum auto insurance coverage because full coverage usually includes collision and comprehensive insurance as well as the minimum coverage required by a state.
The cost of full coverage car insurance varies based on the state, the driver’s chosen coverage limits, the driver’s risk factors, and the vehicle’s value. Additionally, comprehensive and...
read full answer by WalletHub, Financial CompanyDid we answer your question?
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