What is Full Coverage Car Insurance?
Full coverage car insurance is liability, comprehensive and collision insurance all together in one auto insurance policy. When packaged together these vehicle coverages are called “full coverage”. Many times lenders or finance companies require borrowers to carry full coverage auto insurance until the loan on the vehicle is paid in full. This is for financial protection for their investment in case of damage or loss while they still have a financial interest in the vehicle.
Not sure what coverage options you need? Talk to an Insurance Navy insurance agent for more information.
How Much Does Full Coverage Auto Insurance Cost?
The short answer is that full coverage car insurance varies by state. The most expensive states have an average annual cost of $2,100 to $2,800 for full coverage policies. In some states, the average price decreases from $1,000 to $1,800 with a clean driving record.
You can decrease your insurance rates even more by taking advantage of some of the discounts car insurance companies offer to some of their customers, such as student discounts, safe driving or safety feature discounts on car insurance.
Typically, the price difference is that full coverage has double the monthly auto insurance rates of minimum liability insurance policy. Full coverage insurance premiums can range between $110 to $200 a month.
Whenever a claim is filed, especially for at-fault accidents, you must pay a deductible of $500 to $1000. Some insurance companies may offer $0 deductibles. Insurance companies base their vehicle insurance rates on driving history, driver age, and car make and model.
When shopping around for auto insurance, it helps to receive online auto insurance quotes from multiple insurance agencies and compare and contrast costs for different types of coverage.
What Factors Determine Your Full Coverage Insurance Rates?
Sometimes, finding the cheapest full coverage insurance depends on specific factors related to you. All across the board, insurance companies look at the same things when quoting a potential policyholder.
Your car insurance rates depend on your car, driving record, age, location, and ZIP code. However, insurers can also examine your credit history, credit score, and gender (males pay higher rates for car insurance than females). Savvy shoppers always look for insurance discounts and bundles to lower their car insurance costs.
What Types of Insurance are in a Full Coverage Policy?
Several types of insurance policies make up full coverage auto insurance since it isn’t an auto policy itself but rather a combination of three: liability coverage, comprehensive coverage, and collision coverage.
Liability Car Insurance
Liability insurance coverage is what people often refer to when they talk about car insurance. Liability insurance includes both bodily injury liability and property damage liability coverage. Liability auto insurance is mandatory so that physical damage and bodily injuries in an accident you cause can’t go unpaid. Liability limits for bodily injury coverage and property damage liability coverage are predetermined by your state’s insurance requirements.
Collision Car Insurance
Collision coverage pays for repairs or replacement of your vehicle if it hits another vehicle or object, regardless of who is the at-fault driver.
Collision insurance is a type of physical damage coverage that will protect your vehicle in the event of a crash with another driver, guardrail, or any other covered accident.
Comprehensive Car Insurance
Comprehensive coverage covers your vehicle for damage not related to a collision. Comprehensive insurance protects against theft, vandalism, and damage from events like floods, hail, or animal related incidents.
You may find a tree branch has fallen and cracked your windshield, or your car was keyed. Comprehensive insurance coverage pays for these types of damages.
Uninsured/Underinsured motorist Coverage
Uninsured motorist coverage will protect you if you get into a car accident with an uninsured driver. Underinsured motorist coverage will cover you if the at fault driver doesn’t have enough insurance to cover your damages.
These coverages will help pay for injuries or property damage from those accidents. The requirements and availability of these coverages vary by state. We can help you or you can check the car insurance by state page for more info.
Medical coverages
Medical payments coverage (MedPay) and personal injury protection coverage (PIP) are the two most common medical coverages. This combination of coverages will protect you, your family members and in some cases passengers in your vehicle after an accident. Each state determines if these coverages are required and who and what medical expenses are covered.
Additional coverages
Additional types of auto insurance coverage can make up full coverage auto insurance. Some popular optional coverages are listed below.
- Rental Reimbursement: Rental car reimbursement coverage pays for transportation expenses if your vehicle is not available due to a covered loss.
- Emergency Roadside Service: Roadside assistance for tire changes, jump-starts or towing when needed.
- Mechanical Breakdown Insurance: Covers unexpected mechanical repairs.
- Upgraded Accident Forgiveness: Won’t increase your premium if you have a covered accident
- Gap Insurance - Gap insurance is required when financing or leasing a vehicle. It covers the difference between the loan’s current value and the actual cash value of the vehicle.
Do I Need Full Coverage Car Insurance?
Depending on your state, you may be unable to buy some of the previously mentioned policies. The textbook definition of full coverage is a liability, comprehensive, and collision policy.
If you add on a policy like medical payment coverage or uninsured motorist, you won’t be compromising the full coverage car insurance policy but rather strengthen it.
Regardless of how you build it, the result and goal of full coverage remains the same -to financially protect you against damages and injuries in an auto accident for yourself and other drivers.
Full coverage specializes in covering car damage up to its market value and even passengers involved in the accident, as opposed to partial coverage, where you would be responsible for covering everything except damage and injuries that aren’t your own.
How to Get Affordable Full Coverage Car Insurance
Getting affordable full coverage car insurance means shopping around and comparing car insurance quotes. Insurance companies rate risk differently so their quotes can vary a lot. Beyond comparing quotes try these to lower your insurance cost:
- Raise your deductible: Raising your deductible will lower your auto insurance premium but make sure you can afford to pay the deductible if needed.
- Bundle your policies: Bundling car insurance with other policies like home or renters insurance from the same insurance company usually gives you discounts.
- Check for discounts: Many insurers have various discounts so make sure you’re getting all the discounts you’re eligible for.
When Should You Drop Full Coverage on Your Vehicle?
Dropping full coverage car insurance depends on your situation. There is no one size fits all timeline but these factors can help you decide:
- Loan and financial readiness: If your car loan is paid off and you can cover repair or replacement costs after an accident you may choose to drop comprehensive and collision coverages.
- Car value and premium cost: As a car ages its value decreases and so do the insurance premiums. At some point many drivers choose to save the money spent on collision and comprehensive coverage especially if the insurance payout would not be enough to buy a similar car.
- Weighing cost and savings: How much are you paying for extra coverage compared to your car’s current value. Saving the premium amount is a smart move; if you don’t get into an accident the money stays with you and if you do get into an accident you may have enough savings to cover the expenses.
Full Coverage Vehicle Insurance Cost by State
In all states except New Hampshire, car insurance is required to drive. This typically includes bodily injury liability insurance and property damage liability coverage, with some states requiring additional coverages.
By adding collision, comprehensive, and liability insurance you can get full coverage. Below is the average annual full coverage car insurance cost by state.
| State | Full Coverage Insurance Cost |
|---|---|
| Alabama | $1596 |
| Alaska | $1511 |
| Arizona | $1509 |
| Arkansas | $1899 |
| California | $1043 |
| Colorado | $1997 |
| Connecticut | $1841 |
| Delaware | $1738 |
| Florida | $2319 |
| Georgia | $1971 |
| Hawaii | $1118 |
| Idaho | $1647 |
| Illinois | $1477 |
| Indiana | $1235 |
| Iowa | $1250 |
| Kansas | $1649 |
| Kentucky | $2111 |
| Louisiana | $2675 |
| Maine | $961 |
| Maryland | $1855 |
| Massachusetts | $1213 |
| Michigan | $2282 |
| Minnesota | $1602 |
| Mississippi | $1773 |
| Missouri | $1633 |
| Montana | $1690 |
| Nebraska | $1500 |
| $2242 | |
| New Hampshire | $1240 |
| New Jersey | $1707 |
| New Mexico | $1416 |
| New York | $2293 |
| North Carolina | $1310 |
| North Dakota | $1227 |
| Ohio | $1027 |
| Oklahoma | $1833 |
| Oregon | $1323 |
| Pennsylvania | $1457 |
| Rhode Island | $1974 |
| South Carolina | $1496 |
| South Dakota | $1622 |
| Tennessee | $1327 |
| Texas | $1780 |
| Utah | $1182 |
| Vermont | $1162 |
| Virginia | $1256 |
| Washington | $1160 |
| West Virginia | $1486 |
| Wisconsin | $1147 |
| Wyoming | $1472 |
Keep in mind average costs vary by state. These variations are due to factors such as the number of car insurance claims, the number of lawsuits from car accidents and other state specific factors.
Get Full Coverage Car Insurance Quotes in Your State
Full coverage car insurance is the way to go to protect yourself and your loved ones on the road. At Insurance Navy, our insurance agents shop multiple insurance companies to find the best policy for you. Get a free quote online for affordable car insurance, call 888-949-6289 or visit one of our offices for a personal touch.
