Full coverage insurance is a car insurance term used to describe a policy that includes collision and comprehensive coverage, in addition to the bodily injury and property damage liability coverage required by law. Full-coverage car insurance covers the policyholder’s injuries and vehicle damage, not just the other driver. The cheapest car insurance companies for full coverage are Esurance, Geico, and Mercury.
The term full coverage is commonly used by consumers. However, it does not have an official definition within the insurance industry. That’s why you may come across a few different variations of what it includes.
Common Definitions of Full Coverage Car Insurance
- A policy that includes liability, collision and comprehensive.
- A policy that includes the state minimum coverage, plus any additional insurance required by the lender that financed your car.
- Coverage that will take care of anything and everything in the event of a crash or incident.
Types of Full Coverage Car Insurance
Although full coverage does not have an exact definition, it usually refers to a policy that includes liability, comprehensive, and collision insurance.
Liability insurance covers injuries and property damage that you cause to other people when you’re at fault for a car accident. While many states allow drivers to carry liability insurance alone, it doesn’t cover any costs incurred by the policyholder.
Collision insurance repairs or replaces your car after an accident, regardless of who is at fault. Without this coverage, you’ll have to pay out of pocket to repair your car if you cause an accident.
Comprehensive coverage will repair or replace your vehicle when it is damaged by something other than an accident, such as vandalism or a natural disaster. It’s a relatively inexpensive type of insurance, and it’s usually a good investment because it applies to circumstances that are out of your control.
Other Types of Full Coverage Insurance
In addition to liability, collision, and comprehensive insurance, full coverage can include other types of insurance. For instance, you can add personal injury protection (PIP) or medical payments coverage (MedPay) to pay for your medical expenses after an accident. And you can purchase uninsured/underinsured motorist coverage for protection in the event that you are harmed by a driver who either has no insurance or not enough coverage to pay for all of your expenses. Some states require these types of coverage, too.
Cost of Full Coverage Car Insurance
The average cost of full coverage car insurance is $1,997 per year. In comparison, state minimum coverage costs an average of $720 annually. Costs vary by state and insurance company, as well as based on coverage limits and deductible amounts. Additionally, a driver’s premium depends on their personal characteristics, including their driving history, age, and zip code.
Cost of Full Coverage Car Insurance by Company
|Company||Annual Cost of Full Coverage||Annual Cost of Minimum Coverage|
Cheapest Full Coverage Car Insurance
- Esurance: $129 per month
- Geico: $140 per month
- Mercury: $160 per month
- USAA: $167 per month
- Progressive: $168 per month
- 21st Century: $171 per month
- AAA: $177 per month
- MetLife: $193 per month
- Allstate: $194 per month
- Travelers: $199 per month
To find the best cheap full coverage car insurance, you should get multiple quotes from different insurers in order to identify the lowest rate for the coverage you need. Premiums vary based on several factors, including your state and driving record. But in general, the companies listed above offer the best cheap full coverage auto insurance.
3 Tips For Buying Full Coverage Car Insurance
1. Shop around for coverage
When you’re shopping for full coverage car insurance, comparing quotes from multiple insurers before purchasing a policy is the key to finding the best deal. Even after you have coverage, it’s a good idea to comparison-shop every 6-12 months and consider switching insurers if you find a better price elsewhere.
2. Check for discounts
In addition to comparing quotes, you should also compare discounts to see what opportunities insurers give you to save. For example, most insurance companies offer a good driver discount for policyholders who go a certain amount of time without an accident or moving violation. You can also get discounts for things related to your policy, like having more than one type of insurance with the company or paying for coverage in full up front.
3. Carefully select your deductibles
When you purchase a full coverage policy, you’ll select amounts for your collision and comprehensive deductibles. The higher your deductibles are, the lower your premium will be, so selecting high amounts can help you save long-term. However, you still need to select deductible amounts that you can afford to pay if your vehicle is unexpectedly damaged.
Ask the Experts
To gain more insight about full coverage car insurance, WalletHub posed the following questions to a panel of experts. Click on the experts below to view their bios and answers.
1. When should drivers consider getting full coverage car insurance?
2. When should drivers consider dropping full coverage from their car insurance policy?
3. What do you think is the biggest misconception that people have about full coverage car insurance?