If you're shopping for car insurance, you might have come across the term "full coverage" and wondered what it meant.
Full coverage is a broad umbrella phrase referring to a policy that bundles liability coverage, collision coverage and comprehensive coverage.
But states that require more than liability insurance may define full coverage differently.
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Geico auto coverage is available in all 50 states and Washington, D.C., with 16 discounts and add-ons like roadside assistance, rental car reimbursement and mechanical breakdown insurance.
Progressive offers an array of riders, including rideshare insurance and a Deductible Savings Bank that deducts $50 each policy period you go without a claim. It also offers mechanical breakdown insurance, which covers unexpected major system failures.
What is full coverage car insurance?
Typically, full coverage includes:
Liability coverage: Pays for damages and injuries to others if you're held responsible for a collision. Liability coverage is mandatory in every state but New Hampshire.
Collision coverage: Reimburses you for repairs to your car after a collision with another vehicle, object or road hazard, regardless of who is at fault.
Comprehensive coverage: Reimburses you after damage from non-collision events, including theft, vandalism, fire, falling objects, flooding and natural disasters.
Some states require more types of coverage, which can also be part of full coverage, including:
Personal injury protection: Also known as no-fault insurance, personal injury protection (PIP) covers medical expenses and lost wages for you and your passengers if you're injured in an accident, regardless of who is at fault.
Uninsured/underinsured motorist coverage: Reimburses you if you're involved in a collision with an uninsured driver or a driver with insufficient coverage.
How much is full coverage insurance?
In 2024, the national average for full coverage auto insurance was around $2,638 a year or $220 a month. That's compared to about $736 a year, or $61 per month, for a minimum liability policy.
However, individual rates can vary wildly depending on the state you live in, your driving history, your age, and even your gender and marital status.
While full coverage premiums are higher, they're still cheaper than the out-of-pocket cost to repair or replace your vehicle.
You can save on full coverage by comparing price quotes from different companies, raising your deductible or improving your credit score. (Most states allow providers to consider credit history when determining rates.)
What does full coverage car insurance cover?
What's included in a full coverage policy may vary, but the goal is to financially protect a driver in the widest variety of scenarios.
For example, if you hit another car, you'll need liability insurance to pay for repairs to that vehicle or medical care for any of its passengers. But liability doesn't cover damages to your vehicle: For that, you need collision insurance.
Collision insurance can also pay for repairs if you lose control on an icy road and crash into a tree. But your collision coverage won't help you if your car gets stolen. For that, you need comprehensive coverage.
Do I have to get full coverage?
Full coverage is not legally required in any state, but if you take out a lease or loan to pay for your car, your lender or leasing company will likely require it.
Even if you paid cash for your car or have paid off your loan, a full coverage policy is a good idea — especially if you don't have the savings to pay for major repairs or a new vehicle.
If you own your car and it's worth less than 10 times what you'd pay in full coverage premiums, however, it might not be worth it.
Full coverage insurance FAQs
What is full coverage insurance?
While the definition of full coverage can vary, it typically refers to a car insurance policy that includes liability, collision and comprehensive coverage. Some states also require drivers to have personal injury protection and uninsured/underinsured motorist coverage, which can be considered part of full coverage car insurance.
Do I need gap insurance if I have full coverage?
Technically, you don't need gap insurance if you already have full coverage. But if you still have a car loan and owe more than the vehicle is worth, it's a good idea.
Is comprehensive insurance the same as full coverage?
No, despite its name, comprehensive insurance only covers damages to your car from non-collision events, like theft, vandalism or damage from flooding, fire, severe weather and animals. Comprehensive car insurance doesn't cover damages or injuries after an accident with another vehicle.
Do you need full coverage on a financed car?
Yes, most auto loan lenders require borrowers to show proof they have full coverage insurance before they can be approved for financing. If the car is damaged or totaled, the lender wants to be able to recoup their investment.
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