- Full coverage car insurance combines liability, collision, and comprehensive car insurance.
- While collision or comprehensive insurance may fulfill certain requirements, full offers better protection.
- State law requires drivers to have liability insurance, but minimums vary by state.
- Compare car insurance rates with Coverage.com.
There are four main types of car insurance: comprehensive, collision, liability, and full coverage. State law requires that you carry liability car insurance and if you lease or finance your car, your lender will likely require collision or comprehensive car insurance.
However, if you want additional protection, you'll want to look at full coverage car insurance. Full coverage includes so much more for the savvy car owner, even for drivers with cars that are fully paid off.
What is Full Coverage Car Insurance?
Offers multiple coverages
Full coverage combines state minimum liability, comprehensive, and collision insurance
Drivers can also buy various riders to supplement their policy (e.g., roadside assistance, rental car reimbursement, etc.) In some states, drivers may also be required to buy uninsured and underinsured driver coverage—coverage you should consider even if your car is fully paid off and your state doesn't require it.
Types of coverages
- Liability insurance: Liability coverage is required by law and covers damage you cause to other vehicles and property. It also covers bodily injury sustained by other parties involved in the accident. Minimum liability insurance requirements vary by state.
- Collision insurance: Collision coverage pays for vehicle repairs and replacement if you collide with another vehicle or object. It provides coverage regardless of fault.
- Comprehensive Insurance: Comprehensive coverage repairs or replaces your vehicle if it's damaged by theft, vandalism, severe weather, falling objects, and more.
Here's a comprehensive overview of the standard car insurance coverages:
Damage | Comprehensive | Collision | Liability | Full |
Theft | Yes | No | No | Yes |
Vandalism | Yes | No | No | Yes |
Fire | Yes | No | No | Yes |
Natural disaster | Yes | No | No | Yes |
Falling objects (tree) | Yes | No | No | Yes |
Animal damage | Yes | No | No | Yes |
Collision/accident | No | Yes | No | Yes |
Rollover | No | Yes | No | Yes |
Bodily injury/medical bills | No | No | Yes | Yes |
Physical damage | No | No | Yes | Yes |
Property damage | No | No | Yes | Yes |
Uninsured motorist | No | No | Yes | Yes |
Full coverage requirements
If you're wondering, do I need full coverage insurance? The short answer is no. States don't require drivers to carry full coverage insurance. But if you lease or finance your vehicle, your lender may require comprehensive and collision coverage. Even if you don't have outstanding payments on your car, getting a full coverage policy is a good idea because it gives you the most protection across the board.
Why Consider Full Coverage Car Insurance?
Protects your investment
Whether you damage or total a car, replacing or repairing it can be costly—especially if it's new. Full coverage can help you repair or replace it after a car accident, theft, burglary, etc. If you have an outstanding auto loan, you can add gap insurance to help you pay it off after a total loss.
Peace of mind
Auto insurance offers a broad range of coverages for various types of risks. So you can rest easy knowing you have financial protection in unexpected events.
Full coverage may be required
If you lease or finance your car, your lender will likely require comprehensive collision coverage. However, full coverage is the best option for complete protection if you have a newer vehicle.
Is Full Coverage Car Insurance Right for You?
Age and value of your car
Full coverage is often worthwhile for newer or higher-value cars, as they are more expensive to replace. If you drive a 10-year-old clunker, you may be able to skip full coverage, as replacing the car may be less expensive than purchasing comprehensive or collision coverage.
Financial situation
Full coverage is more expensive than liability-only coverage, so before buying a policy, be sure you can afford the premium increase. You'll also have to pay a deductible before your insurer covers your car repairs. You should choose a deductible you can afford if your car needs to be fixed or replaced. The higher your deductible, the lower your premiums.
Your risk tolerance
Different locations have different risks. Carrying full coverage insurance is a smart idea if you drive in a location with high crime or accident rates, volatile weather, or other hazards.
Full Coverage Car Insurance FAQ
Full coverage car insurance is more expensive than minimum liability coverage. This is because it includes liability and protection for your vehicle.
While you can get full coverage auto insurance for an older car, it may not be worth it. This is because replacing your car may be more cost-effective than buying collision and comprehensive coverage. Remember, even if you don't need a full coverage policy, you still need to carry liability coverage.
How much coverage you need depends on your state's minimum coverage requirement, the value of your car, and auto risks in your area. Talk to an insurance agent to assess your needs and get personalized quotes.
