What is full coverage car insurance?

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Before getting behind the wheel of a new car, you need the financial protection that only auto insurance can provide. Navigating through the various coverage options doesn’t have to be difficult, but it can be confusing. Your state’s insurance laws will dictate some of the coverages you must carry, and if you finance or lease a vehicle, the entity that holds the title will most likely require you to carry a full coverage insurance policy. For 2020, the national average annual cost of car insurance was $1,674. So what’s included in full coverage insurance? Don’t worry, we’re here to help you understand exactly which coverages you need.

What is full coverage insurance?

Most states require you to purchase liability coverages and some also require you to carry medical payment or personal injury protection coverages. But state requirements don’t include all the coverages needed to protect your vehicle. A full coverage auto insurance policy includes:

  • Bodily injury liability coverage: When you’re at fault for an accident, and the driver or passengers in the other vehicle sustain injuries, your bodily injury liability coverage will help pay their medical expenses
  • Property damage liability: If you’re responsible for an auto accident, your property damage liability coverage will help pay to repair or replace another driver’s vehicle, or other types of damaged property
  • Collision coverage: If you damage or total your automobile in a traffic accident, collision coverage will help pay to repair or replace it
  • Comprehensive coverage: If a car thief steals your vehicle, or it’s damaged or destroyed in a non-collision event, your comprehensive coverage can help pay to repair or replace it

How much does full coverage insurance cost?

Collision and comprehensive coverages can significantly increase the cost of your auto policy. U.S. car owners pay an average annual premium of around $1,674 for full coverage car insurance. How much you pay varies from company to company and state to state.

Average cost by insurance company

Car insurance companies evaluate a number of personalized factors to determine how much you will pay for car insurance. These range from age and location to type of vehicle you drive and your driving history. Not surprisingly, rates for full coverage car insurance are more than those for minimum coverage car insurance.

Company Full coverage Minimum coverage Difference
Allstate $1,921 $696 $1,225
American Family $1,911 $918 $993
Amica $1,378 $405 $973
Auto-Owners $1,351 $382 $969
Erie $1,233 $409 $824
Farmers $2,000 $808 $1,192
Geico $1,405 $433 $972
MetLife $2,123 $821 $1,302
Nationwide $1,485 $501 $984
Progressive $1,509 $582 $927
State Farm $1,457 $539 $918
USAA $1,225 $384 $841

Average insurance cost by state

Auto insurance rates vary drastically from state to state, with 21 states falling above the national average for full coverage car insurance.

Company Full coverage annual premium Minimum coverage annual premium Difference
Alabama $1,623 $469 $1,154
Alaska $1,559 $373 $1,186
Arizona $1,547 $555 $992
Arkansas $1,914 $470 $1,444
California $2,065 $733 $1,332
Colorado $2,016 $518 $1,498
Connecticut $1,845 $794 $1,051
Delaware $1,775 $787 $988
Florida $2,364 $1,101 $1,263
Georgia $1,982 $756 $1,226
Hawaii $1,127 $345 $782
Idaho $1,045 $307 $738
Illinois $1,485 $442 $1,043
Indiana $1,254 $367 $887
Iowa $1,260 $252 $1,008
Kansas $1,698 $410 $1,288
Kentucky $2,128 $748 $1,380
Louisiana $2,724 $975 $1,749
Maine $965 $294 $671
Maryland $1,877 $767 $1,110
Massachusetts $1,223 $510 $713
Michigan $2,309 $948 $1,361
Minnesota $1,643 $537 $1,106
Mississippi $1,782 $492 $1,290
Missouri $1,661 $468 $1,193
Montana $1,737 $342 $1,395
Nebraska $1,531 $335 $1,196
Nevada $2,245 $860 $1,385
New Hampshire $1,275 $389 $886
New Jersey $1,757 $847 $910
New Mexico $1,419 $385 $1,034
New York $2,321 $1,062 $1,259
North Carolina $1,325 $413 $912
North Dakota $1,264 $285 $979
Ohio $1,034 $328 $706
Oklahoma $1,873 $423 $1,450
Oregon $1,346 $610 $736
Pennsylvania $1,476 $427 $1,049
Rhode Island $2,018 $749 $1,269
South Carolina $1,512 $558 $954
South Dakota $1,642 $275 $1,367
Tennessee $1,338 $371 $967
Texas $1,823 $524 $1,299
Utah $1,306 $528 $778
Vermont $1,207 $292 $915
Virginia $1,304 $441 $863
Washington $1,176 $463 $713
Washington DC $1,855 $704 $1,151
West Virginia $1,499 $458 $1,041
Wisconsin $1,186 $332 $854
Wyoming $1,495 $271 $1,224

Is full coverage insurance worth it?

Full coverage car insurance is usually worth the cost in many cases like if you own an expensive vehicle that you can’t afford to replace on your own or you’re a parent of an inexperienced teen driver. You may also have to carry full coverage, even if your state doesn’t require it.

Frequently asked questions

Is full coverage insurance required for all cars?

No. States require all drivers to carry liability coverage and some also require uninsured and underinsured motorist coverage, as well as medical payments or personal injury protection coverage. If you own your car, you aren’t required to buy collision and comprehensive coverage. But if you finance or lease an automobile, the lender or leasing company will probably require full coverage car insurance.