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Discover everything you need to know about full coverage car insurance, from coverage types and costs to who needs it most.
In this practical guide for understanding car insurance, we'll walk you through full coverage options for different situations, choosing the right deductible, and how factors like age and location impact your full coverage premiums.
Comparing quotes is the easiest way to find affordable full coverage auto insurance. Enter your ZIP cose into our free comparison tool to see rates in your area.
What You Should Know
- Full coverage protects against theft and disasters, with customizable deductibles
- Car loan holders and high-risk area residents need full coverage protection
- Full coverage car insurance costs up to $500 per month for teen drivers
Full Coverage Car Insurance Costs and Coverage
Many drivers are in search for cheap full coverage car insurance. The table below compares minimum and full coverage rates from top insurers. USAA offers cheap full coverage car insurance at $130 per month but is only available to military members.
| Insurance Company | Minimum Coverage | Full Coverage |
|---|---|---|
 |
$60 | $160 |
 |
$53 | $150 |
 |
$52 | $155 |
 |
$45 | $135 |
 |
$65 | $170 |
 |
$48 | $140 |
 |
$55 | $145 |
 |
$50 | $150 |
 |
$58 | $145 |
 |
$40 | $130 |
Unlike minimum coverage, full coverage costs more since it provides higher levels of protection beyond basic liability. Geico and Nationwide have the best car insurance for full coverage for most drivers, with low rates and policies available in most states (Read More: Nationwide Insurance Review).
When comparing full coverage car insurance companies by state, rates range from $100 monthly in South Dakota to $339 per month in Texas, demonstrating how location significantly impacts premiums.
Age and gender also play crucial roles in determining full coverage car insurance rates, with younger drivers facing substantially higher premiums. Teen drivers pay up to $500 monthly while experienced drivers over 55 pay as little as $110 a month.
| Age | Female | Male |
|---|---|---|
| Age: 16 | $450 | $500 |
| Age: 18 | $375 | $425 |
| Age: 25 | $150 | $175 |
| Age: 35 | $125 | $140 |
| Age: 45 | $115 | $130 |
| Age: 55 | $110 | $120 |
Getting affordable full coverage car insurance often depends on these factors, but drivers can find better rates by comparing multiple providers, maintaining a clean driving record, and taking advantage of available discounts based on their specific demographic profile and location.
Learn More: The Car Insurance Age Tax
Understanding Full Coverage Car Insurance Coverage Options
What exactly is full coverage car insurance? Well, the full coverage car insurance meaning doesn't refer to a specific policy but rather a combination of different coverage types. How full coverage car insurance works is straightforward — it bundles multiple coverages including:
- Liability Insurance: Required by most states to protect against damages you cause to others.
- Collision Coverage: Which pays for damage to your vehicle in accidents, regardless of who's at fault.
- Comprehensive Coverage: Protecting against theft, vandalism, natural disasters, and other non-collision incidents.
These coverages come with customizable insurance deductibles, typically ranging from $500 to $1,000. This is the amount your responsible for paying before your policy coverage begins.
What full coverage doesn't cover includes custom equipment, racing incidents, intentional damage, and regular vehicular maintenance.
Have you heard the term "full coverage" before? What does it actually mean? Learn about different car insurance policies in this blog: https://t.co/loqIV13LCg #carinsurance #fullcoverage pic.twitter.com/9i81lVq9EU
— Clearsurance (@clearsurance) March 5, 2019
Is full coverage auto insurance required? While full coverage auto insurance isn't mandated by law, lenders often require it for financed vehicles to protect their investment.
Read More: Collision vs. Comprehensive Coverage
When You Need Full Coverage Car Insurance
When deciding what kind of car insurance do you really need, full coverage car insurance often proves essential for many drivers. Residents living in high-risk areas with frequent accidents, disasters, or theft makes full coverage insurance essential.
It's also essential for owners of newer or high-value vehicles, as it safeguards against various types of damage and theft. Those with active car loans or leases typically don't have a choice — most lenders require full coverage auto insurance as a condition of financing, and experts also recommend gap insurance to protect against depreciation.
While the cheapest companies for full coverage car insurance vary by state and individual factors, Geico, USAA, and Nationwide typically offer the lowest rates in most states.
Is full coverage insurance worth it? With rising vehicle costs, repair expenses, and road risks, the answer is often yes. Enter your ZIP code into our free comparison tool to see how much car insurance costs in your area.
Frequently Asked Questions
What does full coverage car insurance not cover?
Full coverage auto insurance typically doesn't cover custom equipment, racing incidents, intentional damage, regular maintenance, mechanical failures, or personal items stolen from your vehicle.
Is it better to have a $500 deductible or $1,000 on full coverage policies?
The choice between a $500 or $1,000 deductible depends on your financial situation. A higher deductible means lower monthly premiums but more out-of-pocket costs during a claim, while a $500 deductible offers lower out-of-pocket costs but higher monthly premiums.
What happens if I crash my car with full coverage?
If you crash your car with full coverage, your collision coverage will pay for repairs regardless of fault, minus your deductible. Your liability coverage will handle any damage or injuries you caused to others.
Read More: 5 Steps to Take After a Car Accident
When should you drop full coverage insurance on a vehicle?
Consider dropping full coverage auto insurance when your car's value is less than 10 times your annual premium, typically when your car is 8-10 years old. However, maintain liability coverage as required by law.
Why is my full coverage car insurance so high?
High premiums can result from factors like age (especially young drivers), poor driving record, living in a high-risk area, driving a luxury vehicle, or having a low credit score in states where this is considered. If you want cheaper rates, enter your ZIP code into our free comparison tool.
Does full coverage car insurance cover engine failure?
No, full coverage doesn't cover engine failure. This falls under regular maintenance and mechanical breakdowns, which require separate mechanical breakdown insurance or an extended warranty.
Read More: Does car insurance cover repairs?
What happens if my car gets stolen, but I have full coverage insurance?
If your car is stolen and you have full coverage, comprehensive coverage will pay for your car's actual cash value (minus your deductible) after police documentation and an insurance investigation.
Do dealerships make you get full coverage insurance?
Yes, dealerships typically require full coverage insurance when financing or leasing a vehicle to protect their financial interest in the car until it's paid off.
Does full coverage car insurance cover the engine blowing up?
No, full coverage doesn't cover an engine blowing up unless it's directly caused by a covered accident. Regular mechanical failures are considered maintenance issues not covered by insurance.
Will full coverage insurance replace your car?
Full coverage will replace your car if it's totaled in a covered incident, paying the actual cash value minus your deductible. However, you may need gap insurance if you owe more than the car's value.
Read More: 5 Tips to Negotiate the Best Settlement for My Totaled Car