Full coverage car insurance covers damage to your own car in addition to damage you cause to others. It combines three types of coverage: liability insurance, collision insurance and comprehensive insurance. Together, these protect you financially whether you cause an accident, hit a deer or have your car stolen.
Jerry has helped 1,190,325 drivers compare car insurance quotes, including for full coverage policies. Here’s what full coverage includes, what it doesn’t cover and how to decide if it’s right for you.
Jerry pulls up to 20 quotes from top rated carriers.
What is full coverage car insurance?
Full coverage is not an official insurance term. According to the Insurance Information Institute, the combination of liability, collision and comprehensive is what most people mean by “full coverage.”
Here’s a snapshot of the three main coverages that make up a full coverage policy.
Key takeaway: Full coverage means liability plus collision and comprehensive coverage. It’s not an official product name but a common way to describe well-rounded car insurance protection.
Learn more: The 6 main types of car insurance
Do I need full coverage car insurance?
You need full coverage if you have a loan or lease on your car. Your lender requires it to protect their investment. Beyond that, full coverage is a smart choice for anyone who can’t afford to replace their car out of pocket after an accident, theft or weather event.
Here’s a quick guide to help you decide.
| Level | Your situation |
|---|---|
| ✅ You need it | You have a car loan or lease on your vehicle.Your car is worth more than $5,000.You can’t afford to pay for a replacement car out of pocket.You live in an area prone to severe weather, theft or vandalism. |
| 🟡 Consider it | Your car is paid off but still worth a few thousand dollars.You have limited savings and no backup vehicle.You want added peace of mind even though it’s not required. |
| ❌ Skip it | Your car’s value is less than $5,000.Your annual collision and comprehensive premium exceeds 10% of your car’s value.You have enough savings to replace your car if it’s totaled. |
A common rule of thumb: if your annual premium for collision and comprehensive costs more than 10% of your car’s current market value, dropping those coverages may make financial sense. For example, if your car is worth $3,000 and you’re paying $400 a year for collision and comprehensive alone, the math may not work in your favor.
Key takeaway: If you finance or lease your car, full coverage is required. If your car is paid off, compare its value to your annual premium to decide. If your car is worth less than $5,000, you likely can drop full coverage.
What does full coverage cost?
The average cost of full coverage car insurance in the U.S. is about $1,438 per year, according to data from the National Association of Insurance Commissioners.
Meanwhile, Jerry customers pay between $180 – $406 per month for full coverage. Your actual rate depends on factors like your age, location, driving record, credit score and the car you drive.
Here’s what Jerry customers typically pay for different coverage levels.
Factors that affect your full coverage rate:
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Your age and driving experience. Younger drivers typically pay more because they have less time behind the wheel.
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Your driving record. Accidents and traffic violations raise your premium.
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Where you live. Urban areas with more traffic and higher theft rates tend to cost more.
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Your car’s make and model. Expensive cars and cars with high repair costs are pricier to insure.
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Your deductible. A higher deductible lowers your monthly premium but means you pay more out of pocket after a claim.
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Your credit score. In most states, insurers use credit-based insurance scores to help set rates.
Key takeaway: Full coverage costs roughly $150 to $300 per month for most drivers. Raising your deductible and comparing quotes are two of the easiest ways to lower your rate.
Learn more: Cheap full coverage car insurance
How to get full coverage with Jerry
Getting full coverage doesn’t need to be complicated. Jerry makes it easy to compare quotes for all coverage levels from over 50 insurance companies, and does it in minutes with no long forms or phone calls.
- Compare quotes from 50+ insurers in minutes. Answer a few quick questions and Jerry pulls up side-by-side quotes from top-rated insurers. You can adjust your coverage limits and deductibles to see how they affect your price.
- Customize limits and deductibles and preview savings. Choose the full coverage policy that fits your budget. Jerry shows you exactly what each insurer charges so you can make an informed decision.
- Bind coverage in-app with no lapse between policies. Once you pick a policy, Jerry handles the switch and can cancel your old policy for you.
What full coverage doesn’t cover
Despite the name, full coverage does not cover everything. There are several common situations where you’d still be responsible for costs out of your own pocket.
| Not covered by full coverage | What to do about it |
|---|---|
| Gap between your car loan and its value. If your car is totaled and you owe more than it’s worth, full coverage only pays the car’s current value. | Add gap insurance to cover the difference between what you owe and what your car is worth. |
| Medical bills for you and your passengers. Full coverage focuses on vehicle damage, not personal injuries. | Add personal injury protection or medical payments coverage. PIP is required in 12 no-fault states. |
| Costs when an uninsured driver hits you. Over 15% of U.S. drivers are uninsured, according to the Insurance Research Council. | Add uninsured motorist coverage to protect yourself from drivers who have no insurance or too little. |
| Rental car costs while yours is being repaired. | Add rental reimbursement coverage. It typically costs a few dollars per month. |
| Roadside assistance. Towing, jump-starts and lockout help are not included. | Add roadside assistance coverage or get it through a membership program. |
| Mechanical breakdowns and normal wear and tear. | Consider a mechanical breakdown insurance policy or extended warranty for newer vehicles. |
Key takeaway: Full coverage protects your car, but not everything else. Consider gap insurance, uninsured motorist and rental reimbursement to fill the gaps.
Full coverage vs. liability-only insurance
Liability-only insurance pays for damage and injuries you cause to others. Full coverage adds collision and comprehensive, which pay for damage to your own car. The difference comes down to whether you want to protect your vehicle or only meet legal requirements.
Learn more: The differences between liability insurance vs. full coverage.
Key takeaway: Full coverage protects both you and your car. Liability only covers damage you cause to others. The right choice depends on your car’s value and your finances.
When to drop full coverage on a paid-off car
Once your car is paid off, full coverage is no longer required. But that doesn’t mean you should drop it right away. The decision comes down to your car’s value and what you can afford to pay out of pocket.
Here’s a straightforward way to think about it:
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Check your car’s current market value. Look it up using Kelley Blue Book or your insurer’s estimate.
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Add up your annual collision and comprehensive premiums.
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Apply the 10% rule. If your annual premium for those two coverages exceeds 10% of your car’s value, switching to liability only may make more sense financially.
For example, if your car is worth $4,000 and you’re paying $500 a year for collision and comprehensive coverage, that’s 12.5% of your car’s value. In that case, you might save money by dropping full coverage and setting aside the premium difference in an emergency fund.
However, if your car is worth $15,000 and your premium is $600 a year, that’s only 4% of your car’s value. Keeping full coverage makes sense because the potential payout far exceeds the cost of the coverage.
Not sure how much car insurance you need? Jerry can help you compare different coverage levels to find the right balance.
Key takeaway: Use the 10% rule: if your annual collision and comprehensive premium exceeds 10% of your car’s value, consider switching to liability only.
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faq
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Is full coverage car insurance required?
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How much does full coverage car insurance cost?
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What’s the difference between full coverage and liability insurance?
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Does full coverage pay for mechanical breakdowns?
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When should I drop full coverage on my car?
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Does full coverage include roadside assistance?
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Is full coverage required for a leased car?
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Does my credit score affect my full coverage rate?
Ben Moore is a writer and editor at Jerry and an auto insurance expert. He previously worked as a writer, editor and content strategist on NerdWallet’s auto insurance team for five years. His work has been published in The Associated Press, Washington Post, Chicago Sun-Times, MarketWatch, Nasdaq and Yahoo News. He also served as a NerdWallet spokesperson, with appearances on local broadcast television and quotes in Martha Stewart and Real Simple magazine.
Ben has an extensive background in digital marketing, working on affiliate and programmatic advertising campaigns for brands like Cabela’s, H&R Block and Sears. He holds a bachelors degree in marketing from Olivet Nazarene University.
