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Full coverage auto insurance is a combination of liability, collision and comprehensive coverage that protects both other drivers and your own vehicle. Liability covers damage you cause to others, collision pays for repairs to your car after an accident, and comprehensive covers non-collision events like theft, weather damage and fire. Together, they offer significantly broader protection than a minimum coverage policy — and a higher price tag to match.

Nationally, full coverage averages $2,578 per year, or about $215 per month. But that number shifts dramatically by state. Drivers in Vermont pay as little as $1,660 per year, while those in Louisiana pay close to $4,000 — nearly $2,400 more for the same type of policy. Your driving record, the car you drive, your deductible and the insurer you choose all influence where your rate lands.

Drivers should shop around and compare quotes from three to five insurers to find the most affordable full coverage car insurance policy for them.

🔑 What you need to know about full coverage

“Full coverage” isn’t an official policy type — it’s a bundle of liability, collision and comprehensive coverage
The national average is $2,578 per year, but rates range from $1,660 to nearly $4,000 depending on where you live
If you’re financing or leasing your car, your lender will likely require it
People overestimate the cost of coverage by as much as tenfold — it’s more affordable than most expect
Shopping around and comparing quotes is the single most effective way to lower your rate

What is full coverage car insurance and what does it include?

Full coverage car insurance is a combination of coverages that together give you more protection than state-minimum insurance alone. Most insurers and lenders use it to mean a policy that includes at least these three components:

Liability coverage. Pays for injuries or property damage you cause to others in an accident
Collision insurance. Pays to repair or replace your own car after a crash, regardless of who’s at fault
Comprehensive insurance. Covers damage to your car from non-collision events like theft, weather, fire or falling objects

Full coverage typically includes:

Bodily injury liability
Property damage liability
Collision
Comprehensive

Because “full coverage” isn’t a standardized term, two policies with that label can look very different. Some insurers bundle in extras like roadside assistance or rental reimbursement, while others keep it bare bones. Always check what’s actually included before assuming you’re fully protected.

How does full coverage auto insurance work after an accident or claim?

When something happens to your car — a crash, a theft, a hailstorm — you file a claim with your insurer. If the damage falls under a covered event, your insurer pays to repair or replace your vehicle up to your policy limits. For collision or comprehensive claims, you’ll pay your deductible first, and your insurer covers the rest.

Expert Tip

“Full coverage helps most in situations drivers do not anticipate, including weather events, hitting an animal, theft, and vandalism.” — Brad Spurgeon, owner and CEO of the Brad Spurgeon Insurance Agency

Even if you caused the accident, you’re still covered. Your liability coverage takes care of the other driver’s repairs and medical bills, while your collision coverage handles your own vehicle — so you’re not left paying out of pocket on either end.

What happens to your rate afterward is a little less clear-cut. Premiums often tick up after a claim, but the size of that increase depends on your driving history, whether you were at fault, and where you live. A first-time claim on an otherwise clean record may barely move the needle — especially if your policy includes accident forgiveness.

What is considered full coverage auto insurance?

Think of it as two-part protection: coverage for others and coverage for your own car.

Most drivers are required to carry liability insurance by law — but liability only covers damage you cause to other people. Full coverage goes further by also protecting your own vehicle, which is where most drivers feel the financial pinch after an accident.

Coverage for others: Liability. Liability coverage kicks in when you’re at fault in an accident. It pays for the other driver’s vehicle repairs, medical bills and any other damages you’re legally responsible for. Without it, those costs come directly out of your pocket — which is why every state requires at least some level of liability coverage.
Coverage for your own car: Collision and comprehensive. This is the part most people think of when they hear “full coverage.” Collision insurance pays to repair or replace your car after an accident, regardless of fault. Comprehensive covers everything else — theft, weather damage, fire, hitting an animal. Together, they make sure you’re not left covering a large repair bill on your own.

How much coverage is enough?

State minimums are a floor, not a recommendation. Most financial experts suggest carrying at least 100/300/100 liability limits — meaning $100,000 per person, $300,000 per accident and $100,000 in property damage. If your assets exceed what your policy covers, you could be personally responsible for the difference.

How does minimum coverage compare to full coverage auto insurance?

Minimum coverage keeps you legal, while full coverage helps protect your car.

Minimum coverage refers to policies that meet the state’s minimum requirements for coverage. Depending on the state, that may mean your policy only contains bodily injury liability and property damage liability protection. In some states, a state-minimum policy may also require personal injury protection (PIP) and uninsured/underinsured motorist protection. These policies don’t provide any coverage for your own vehicle.

Coverage type	Minimum coverage	Full coverage
Liability for others	✅ Required	✅ Often higher limits recommended
Damage to your car in a crash	❌ Not included	✅ Collision
Theft & weather damage	❌ Not included	✅ Comprehensive
Lender requirement (loan/lease)	❌ Usually not enough	✅ Often required
Premium cost	✅ Lower	✅ Higher

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What’s the difference between comprehensive and collision coverage?

Collision covers crashes, while comprehensive covers almost everything else.

They’re often sold together and grouped under “full coverage,” but collision and comprehensive insurance protect against very different situations — and knowing the difference can help you decide whether you need one, both, or neither.

Collision coverage pays for damage to your car when it hits another vehicle or object, or if your car rolls over. It applies regardless of who caused the accident.
Comprehensive coverage pays for damage caused by events outside of driving — think theft, vandalism, fire, falling objects and weather. It also covers animal collisions, which are more common than most drivers realize. Between July 2024 and June 2025 alone, State Farm processed over 1.7 million claims from animal-related collisions, such as deer strikes.

If you’re financing or leasing your vehicle, your lender will likely require both. If you own your car outright, whether to carry one or both depends on your car’s value and how much risk you’re comfortable taking on.

Here’s how the two coverages break down in real-world scenarios:

Situation	Collision	Comprehensive
You rear-end another car at a stoplight	✓ Covered	Not covered
You run off the road and hit a light post	✓ Covered	Not covered
You hit a deer on the way home from work	Not covered	✓ Covered
A tree falls and smashes your car’s roof	Not covered	✓ Covered
Hail damages your car’s exterior	Not covered	✓ Covered

⚠️ Animal collisions happen more often than most drivers expect

According to State Farm, more than 1.7 million drivers filed claims for animal-related collisions between July 2024 and June 2025. Without comprehensive coverage, that repair bill lands entirely on you.

What other coverages can you add to full coverage?

Collision and comprehensive cover a lot, but they don’t cover everything. Depending on your situation, adding one or more of these optional coverages could save you from a significant out-of-pocket expense when something goes wrong.

Uninsured/underinsured motorist (UM/UIM). About 1 in 7 drivers on the road is uninsured. If one of them hits you, your own liability coverage won’t help — that’s where UM/UIM steps in. It covers your medical bills and vehicle repairs when the at-fault driver either has no insurance or doesn’t have enough to cover the full cost of your damages.
Personal injury protection (PIP) and MedPay. Both cover medical expenses for you and your passengers after an accident, regardless of who caused it. PIP is required in no-fault states and tends to be broader — it can also cover lost wages and rehabilitation costs. MedPay is more limited but available in most states as an add-on.
Rental reimbursement. If your car is in the shop after a covered claim, rental reimbursement covers the cost of a temporary replacement vehicle. It’s a small add-on that’s easy to overlook — until you’re stuck without a car for two weeks.
Roadside assistance. A flat tire, a dead battery, a car that won’t start — roadside assistance covers the emergency help you need to get back on the road. If you don’t already have it through a membership like AAA, adding it to your policy is usually inexpensive.
Gap insurance. New cars can lose 20% or more of their value the moment you drive off the lot. If your car is totaled or stolen and you still owe more on your loan than the car is worth, gap insurance covers the difference — so you’re not stuck making payments on a car you no longer have.

What does full coverage auto insurance not cover?

Full coverage typically won’t pay for normal wear and tear, mechanical breakdowns, intentional damage, racing or off-roading, and business or rideshare use without the right endorsement. Here’s what each exclusion means — and when it’s worth adding extra protection.

Normal wear and tear. Car insurance covers sudden, unexpected damage — not the gradual kind. Worn brake pads, aging tires and a deteriorating engine are maintenance issues, not insurable events. Those costs are on you.
Mechanical breakdowns. If your transmission fails or your engine gives out, don’t expect your auto policy to help. Mechanical breakdowns fall outside the scope of car insurance — a vehicle service contract or extended warranty is what covers these.
Intentional damage. If you deliberately damage your own vehicle — or someone else’s — your insurer won’t cover it. Filing a fraudulent claim can also result in your policy being cancelled.
Racing and off-roading. Standard policies are written for everyday road use. If you take your car to a track or off-road and something goes wrong, you’re likely on your own. Specialty coverage exists for both, but it needs to be arranged separately.
Business use without the right endorsement. Using your personal vehicle for work — making deliveries, transporting clients, running errands for your employer — may not be covered under a standard policy. If you regularly use your car for business purposes, a commercial endorsement or separate policy is worth looking into.
Rideshare activity without rideshare coverage. Driving for Uber or Lyft creates a coverage gap that most personal policies don’t fill. Many insurers now offer rideshare endorsements specifically to bridge that gap — but without one, you could be unprotected while the app is on.

⚠️ Driving for Uber or Lyft? Your personal policy may not cover you

Most standard policies have a coverage gap when the rideshare app is active. Check with your insurer before you start driving — a rideshare endorsement is usually inexpensive and can prevent a costly gap in protection.

How much does full coverage auto insurance cost by state?

Full coverage costs more than minimum coverage because it protects your own vehicle in addition to covering damages you cause to others. Nationally, rates range from $1,660 per year in Vermont to nearly $4,000 in Louisiana — a difference of over $2,300 for the same type of policy.

Where you live is one of the biggest factors in what you pay. Louisiana, Michigan and Nevada are the most expensive states for full coverage, while Vermont, New Hampshire and Hawaii are the least. Beyond location, your rate is also shaped by your driving history, the value of your vehicle, your deductible and the insurer you choose.

Most expensive states for full coverage:

Louisiana: $3,999 per year
Nevada: $3,963 per year
Michigan: $3,964 per year

Least expensive states for full coverage:

Vermont: $1,660 per year
New Hampshire: $1,689 per year
Hawaii: $1,757 per year

Here’s how full coverage rates break down by state:

State	Average annual premium	Highest premium	Lowest premium
Alabama	$2,116	$3,294	$1,546
Alaska	$2,167	$2,928	$1,831
Arizona	$2,420	$3,193	$1,734
Arkansas	$2,942	$4,008	$1,918
California	$3,444	$4,486	$2,039
Colorado	$3,181	$4,217	$1,496
Connecticut	$2,742	$3,620	$1,621
DC	$3,465	$4,908	$1,991
Delaware	$3,157	$6,579	$1,786
Florida	$3,916	$6,137	$2,448
Georgia	$2,503	$4,119	$1,807
Hawaii	$1,757	$2,478	$1,296
Idaho	$1,901	$2,885	$1,313
Illinois	$1,938	$2,851	$1,428
Indiana	$1,894	$2,782	$1,192
Iowa	$2,460	$3,195	$1,923
Kansas	$2,496	$4,263	$1,834
Kentucky	$2,624	$3,866	$1,828
Louisiana	$3,999	$5,206	$2,230
Maine	$1,808	$2,389	$977
Maryland	$1,999	$3,455	$1,561
Massachusetts	$2,429	$3,361	$1,646
Michigan	$3,964	$7,837	$1,971
Minnesota	$2,591	$3,397	$1,837
Mississippi	$2,397	$3,711	$1,779
Missouri	$2,151	$2,980	$1,692
Montana	$2,476	$3,341	$2,058
Nebraska	$2,095	$4,149	$1,625
Nevada	$3,963	$6,064	$2,206
New Hampshire	$1,689	$2,656	$1,216
New Jersey	$3,122	$4,534	$2,373
New Mexico	$2,577	$3,785	$1,518
New York	$2,596	$3,599	$1,258
North Carolina	$2,638	$4,342	$1,460
North Dakota	$2,439	$2,892	$1,978
Ohio	$1,783	$2,214	$1,512
Oklahoma	$2,993	$4,997	$2,194
Oregon	$2,048	$2,655	$1,539
Pennsylvania	$2,327	$2,884	$1,770
Rhode Island	$2,878	$3,864	$2,124
South Carolina	$2,417	$4,790	$1,731
South Dakota	$2,575	$4,212	$1,504
Tennessee	$2,235	$3,152	$1,686
Texas	$3,106	$6,136	$1,638
Utah	$2,356	$4,472	$1,550
Vermont	$1,660	$1,857	$1,513
Virginia	$1,835	$2,660	$1,240
Washington	$2,389	$2,618	$2,033
West Virginia	$2,415	$3,765	$1,907
Wisconsin	$2,343	$2,994	$1,607
Wyoming	$2,061	$3,222	$1,271

💡 Don’t settle for the first quote you get

In Tennessee, the difference between the highest and lowest full coverage rate is nearly $1,500 per year — and both policies offer the same basic protection. Comparing quotes from multiple insurers is one of the simplest ways to make sure you’re not overpaying.

When is full coverage worth it?

Full coverage makes the most financial sense when the gap between what you’d pay out of pocket and what your insurer would cover is large. Here are the situations where it’s typically worth carrying:

You’re financing or leasing your car. This one isn’t optional — most lenders and leasing companies require full coverage until the loan is paid off. If your car is totaled or stolen, they want to make sure their investment is protected, not just yours.
Your car is newer or high in value. The more your car is worth, the more you stand to lose without comprehensive and collision coverage. A fender bender on a newer vehicle can easily run into thousands of dollars — full coverage means you’re not absorbing that cost alone.
You couldn’t comfortably replace your car out of pocket. A good rule of thumb: if an unexpected repair or total loss would seriously strain your finances, full coverage is probably worth the extra premium. The question isn’t just what your car is worth today — it’s whether you could replace it tomorrow without financial stress.
You live somewhere prone to theft or severe weather. If you’re in an area with high vehicle theft rates, frequent hailstorms, flooding or other weather risks, comprehensive coverage does a lot of heavy lifting. These are exactly the kinds of unpredictable events that full coverage is designed for.

💡 Not sure if full coverage is worth it on your older car?

A simple benchmark: if your annual collision and comprehensive premiums add up to more than 10% of your car’s current market value, it may be time to drop them. Check your car’s value at Kelley Blue Book before your next renewal.

How to lower the cost of full coverage without gutting protection

A few smart adjustments can meaningfully reduce your premium without leaving you exposed. These three strategies can help you trim costs while keeping the protection that matters most.

Raise your deductible — carefully. Your deductible is the amount you pay out of pocket before your insurer covers the rest. Raising it from $500 to $1,000 can noticeably lower your premium, but it’s only a smart move if you could comfortably cover that higher amount in a pinch. Before adjusting, make sure the monthly savings justify the added financial risk.
Reconsider collision and comprehensive on older cars. If your car is older or has high mileage, you may be paying more in premiums than your car is actually worth. A good benchmark: if your annual collision and comprehensive premiums exceed 10% of your car’s value, it may be time to drop them and switch to liability only. You can check your car’s current market value on tools like Kelley Blue Book.
Ask your insurer what discounts you qualify for. Most drivers don’t realize how many discounts are available — and insurers don’t always volunteer the information. Common ones include low-mileage discounts for drivers under a certain annual threshold, bundling discounts for combining auto and home insurance, and paperless billing discounts for switching to electronic statements. A quick call to your insurer could uncover savings you didn’t know were on the table.

💡 The best rate is the one you shopped for

Premiums for identical coverage can vary by hundreds — sometimes thousands — of dollars between insurers. Set a reminder to compare quotes at every renewal, not just when you first buy a policy.

Frequently asked questions

Is it worth getting full coverage on an older car?

It depends on the car’s current market value. A good rule of thumb is to compare what you’re paying annually for collision and comprehensive against what your insurer would actually pay out if the car were totaled. If your car is worth $5,000 and you’re paying $800 a year for collision and comprehensive, the math may not work in your favor — especially after factoring in your deductible. Check your car’s current value on Kelley Blue Book before your next renewal to see if the numbers still make sense.

Can you get full coverage with a bad driving record?

Yes, but you’ll pay more for it. Insurers view drivers with accidents, speeding tickets or DUIs as higher risk, which is reflected in higher premiums. The good news is that not all insurers penalize driving violations equally — some are more forgiving than others. Shopping around is especially important if you have a less-than-perfect record, as rates can vary significantly between companies for the same driver profile.

Does full coverage pay for a rental car while mine is being repaired?

Not automatically. Rental reimbursement is a separate add-on that covers the cost of a temporary vehicle while yours is in the shop after a covered claim. Without it, you’d be responsible for the rental cost yourself. It’s one of the most affordable add-ons available — typically just a few dollars a month — and one of the easiest to overlook until you actually need it.

What happens to my full coverage policy if my car is totaled?

If your car is declared a total loss — meaning the cost to repair it exceeds its actual cash value — your insurer will pay you the market value of the vehicle at the time of the accident, minus your deductible. That amount may be less than what you paid for the car or what you still owe on your loan. If you’re financing your vehicle and owe more than it’s worth, gap insurance covers that difference so you’re not stuck paying off a car you no longer have.

Does where I park my car affect my full coverage rate?

It can. Insurers look at more than just your driving record — they also consider where your car is kept overnight. Parking on the street in a high-theft urban area can push your comprehensive premium higher than if you garage your car in a low-risk suburb. Some insurers ask directly about your parking situation when you apply, while others factor it into their broader assessment of your zip code’s risk profile.

Can I switch from full coverage to minimum coverage at any time?

Yes, as long as you own your car outright and aren’t required by a lender to maintain full coverage. Keep in mind that dropping collision and comprehensive mid-policy means any damage that occurs after that point won’t be covered. If you’re thinking about making the switch, it’s worth timing it carefully — ideally at renewal — and checking your car’s current value first to make sure the savings justify the reduced protection.

Methodology

Insure.com commissioned Quadrant Information Services to calculate average auto insurance rates for 2025. Rates were analyzed across all 50 states and Washington, D.C., covering 29,159 cities and 34,595 ZIP codes. A total of 195 insurance companies, grouped into 73 company groups, were included to ensure a comprehensive view of pricing nationwide.

Average rates are based on a sample profile of male and female drivers aged 40 with a good insurance score and a clean driving record. The driver owns a Honda Accord LX and drives 10,000 miles annually, including a 12-mile commute. Policies include full coverage with liability limits of 100/300/100 and $500 collision and comprehensive deductibles.

More than 65.7 million insurance quotes were examined to calculate national and regional averages. The national average annual premium based on this profile is $2,578.

Kat Tretina

Kat Tretina is an insurance expert and freelance writer specializing in personal finance and insurance. Her work has appeared in top publications like U.S. News, Money.com and The Wall Street Journal’s Buy Side. She helps readers make informed decisions about money, budgeting and car insurance.

On this page

What is full coverage car insurance and what does it include?
How does full coverage auto insurance work after an accident or claim?
What is considered full coverage auto insurance?
What’s the difference between comprehensive and collision coverage?
What other coverages can you add to full coverage?
How much does full coverage auto insurance cost by state?
When is full coverage worth it?
How to lower the cost of full coverage without gutting protection
Frequently asked questions
Methodology

What is full coverage car insurance?