Cheapest Full Coverage Car Insurance

The best ways to get cheap full coverage car insurance are to compare quotes from at least three companies every 6-12 months, choose the highest deductible you can comfortably afford, and take advantage of discounts. For instance, many insurers offer discounts for paying your premium in full up front and taking an approved defensive driving course. You can get full coverage for cheap from Esurance, Geico, and Mercury.

How to Get Cheap Full Coverage Car Insurance 

1. Compare quotes from multiple companies in order to find the best deal.
2. Pick the highest deductible you can afford.
3. Make sure you're getting every discount you qualify for.
4. Cut any unnecessary coverage types and consider lowering your liability

Things to Consider When Getting Full Coverage Car Insurance

Although raising your deductible and lowering your liability limits can help you save money in the short-term, be sure to weigh the pros and cons. For instance, it's not worth raising your deductible to an amount that's unreasonable for your financial situation. Similarly, if your liability limits are too low, you could be held personally responsible for damages if you cause a severe accident.

In the long run, the best way to get cheap full coverage car insurance is to make yourself as low-risk as possible for insurers. That means maintaining a clean driving record, raising your insurance score, and choosing a vehicle that's inexpensive to insure.                                       

For more information, check out WalletHub's guide to the cheapest full coverage car insurance.

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.

Full coverage car insurance usually includes collision and comprehensive insurance alongside any state-mandated coverage. As such, full coverage may cover bodily injury, property damage, uninsured motorist, PIP, collision and comprehensive claims.

What Common Components of Full Coverage Car Insurance Cover

Since some states require more types of coverage than others, the exact standards for “full coverage” insurance differ. Most states require all drivers to have a minimum amount of liability insurance, but some states have requirements for personal injury protection or MedPay, too. Some also require a specified amount of uninsured/underinsured motorist coverage.

To learn more, check out WalletHub's guide to 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 collision insurance are subject to a deductible, and drivers can select a higher deductible in return for a lower premium. Drivers can also minimize the cost of full coverage car insurance by comparing rates and checking for discounts.

Cheapest Full Coverage Insurance Companies

1. Esurance - $1,548 per year
2. Geico - $1,675 per year
3. Mercury - $1,919 per year
4. USAA - $2,002 per year
5. Progressive - $2,016 per year

It is worth it to have full coverage insurance if your car is worth more than the combined cost of a full coverage policy and deductible, or if you can't afford to replace your car without it. Full coverage is typically required if your car is leased or financed and worth having.

Full coverage car insurance costs an average of $1,997 per year, compared with $716 for a policy that only fulfills the state's minimum coverage requirements. That's a big difference, but you also have to consider that you will need to pay out of pocket to repair or replace your car if it is damaged in an accident that you cause and you don't have full coverage. The average new car costs almost $40,000.

As a result, full coverage – a policy that includes collision and comprehensive insurance as well as whatever coverage is required in your state – is a good investment for most drivers. But if your car is not worth much and you could afford to buy a replacement or live without it, full coverage might not be worth it.

For more information, check out WalletHub's complete guide to full coverage insurance.   

You need full coverage if your car is leased or financed. Full coverage car insurance is not required by law, but lenders and lessors generally want it, and it is a good idea to maintain full coverage if you cannot afford to repair or replace your car in the event of a total loss.

How to Decide if You Need Full Coverage

You should consider your car's value and your location when deciding if you need full coverage. If you own your car outright but it's particularly valuable, your full coverage premium is likely a good investment compared to the car's worth.

Similarly, even if you could afford to repair or replace the vehicle, it's smart to keep full coverage if you live in an area with frequent collisions or thefts. After all, full coverage usually refers to a policy that includes collision and comprehensive coverage in addition to the state's minimum required insurance.

If you are trying to save on your premium but cannot drop full coverage, you might be able to raise your deductible, as long as it isn't dictated by your insurer or lender. But bear in mind that you should always choose a deductible that you'll be able to afford in the event of a claim.

Yes, you need full coverage on a financed car. Any reputable lender will require drivers with a financed vehicle to purchase comprehensive and collision insurance, in addition to the state's minimum required car insurance coverage. Your contract with the lender might even require you to choose a specific deductible to ensure that you will be able to pay it if you file a claim.

Why You Need Full Coverage on a Financed Car

Full coverage is required on financed cars to protect the lender's investment. This applies regardless of whether the vehicle is new or used.

When buying full coverage insurance for a car with a loan, you should notify your insurer that the car is financed, because your lender will need to be listed on the policy. As a result, your lender will be notified when your policy expires, is renewed, or is canceled. When your loan ends, you can notify your insurance company in order to have your lender removed from the policy.

Other Key Things to Know About Full Coverage on Financed Cars

If you purchase full coverage and then fail to maintain it, your lender may be able to purchase expensive force-placed insurance or even repossess your car. The good news is that having an auto loan is not considered a risk factor for insurers, so the loan itself will not increase your insurance premiums. Full coverage is more expensive than maintaining only your state's mandatory minimum coverage, though.

You can find affordable full coverage by checking out WalletHub's page on cheap car insurance and our guide to car insurance discounts.

You do not need full coverage insurance on a used car unless the vehicle is leased or financed. Even though no state requires full coverage insurance, is still recommended for a used car if you cannot afford to repair or replace the car after an accident or other unexpected event. Full coverage is not an official type of insurance, but it usually refers to a policy that includes collision and comprehensive coverage in addition to the state's minimum required car insurance.

When deciding if you should buy full coverage insurance for a used car, consider the car's value, your savings, and where you live. For example, dropping full coverage could be worth it if you have an emergency fund that could comfortably cover the cost of repairs or a new car. But even if you could cover the loss yourself, it's wise to keep full coverage if your car is particularly valuable or you are especially likely to file a collision or comprehensive claim.

A general rule of thumb is to drop full coverage when the combined collision and comprehensive premium equals 10% of your car's value. But a lot depends on your own financial situation and vehicle.

The cheapest full coverage insurance for bad drivers is from Geico and Progressive, which provide up to 40% in savings compared to other high-risk policies. For drivers with most types of moving violations on their record, including speeding and reckless driving, Geico is the best option. Progressive provides the best rates for drivers with more serious infractions such as at-fault accidents and DUI.

In addition to the savings they offer bad drivers, both Geico and Progressive extend coverage to drivers whose states have required them to submit an SR-22 or FR-44. These are documents that serve as proof of insurance for individuals with severe infractions on their driving records, and many insurance companies will not offer coverage to drivers who need them.

How Bad Driving Affects the Price of Full Coverage

Having multiple infractions from the last 3-5 years on your driving record classifies you as “high-risk,” which means you're more likely to get into an accident or file a claim than the average driver.

Even though bad drivers pay more for full coverage auto insurance, the exact amount varies depending on factors such as the seriousness of any previous infractions. For example, a speeding ticket will only increase your rate by about 25%, while a DUI causes it to go up by 80% on average.

Cost of Insurance for Bad Drivers, by Violation

Note: Quotes based on average rates from the largest insurance companies in California.

Full Coverage Options for High-Risk Drivers

If your bad driving record is preventing you from finding a full coverage auto insurance policy that fits your budget, you have a few options. Depending on your driving record, you might want to consider getting coverage from a company that specializes in nonstandard insurance, like The General or Dairyland. If you're still unable to find an insurer that will cover you, then you should consider entering your state's assigned-risk pool.

While most assigned-risk programs will only allow you to get the minimum coverage required by state law, it's a good temporary option while you work toward improving your driving record.

Most insurance companies only take the past two to three years into consideration when calculating your premium, so if you practice good habits on the road for long enough, you'll eventually be able to get a better deal. Long-term, you should look for a company that gives strong discounts for good driving, like State Farm.

Liability insurance is 64% cheaper than full coverage, on average. Liability car insurance costs an average of $720 per year, while full coverage car insurance averages $1,997 per year, according to WalletHub data for 2021. The exact cost difference between liability and full coverage insurance depends on factors such as the driver's state, vehicle, and driving history.

Full Coverage vs. Liability Insurance Cost by Company

Note: Rates reflect average annual costs in California.

Why Full Coverage Is More Expensive Than Liability Insurance

Full coverage insurance is more expensive than a liability-only policy because it offers broader protection. Liability insurance only pays for other people's repair expenses and medical bills after accidents that you cause. On the other hand, full coverage includes liability insurance plus collision and comprehensive coverage, which pay to repair or replace your vehicle after an accident or other damage-causing event.

To learn more, check out WalletHub's guide to liability vs. full coverage insurance.