Full coverage car insurance is a term used to describe an auto insurance policy that has liability, collision and comprehensive coverage. Here's a look at those three coverage types.
What full coverage car insurance covers
|Coverage type:||Pays for:|
|Liability insurance||Damage you cause to others, including property damage (dented cars, crushed fences, etc.) and injuries. Most states require that car owners buy a certain minimum level of liability insurance.|
|Collision insurance||Damage to your own car if you crash into something. For example, if you back into a pole or hit another car.|
There are other types of car insurance you might want to consider. These include:
Uninsured/underinsured motorist coverage (UM/UIM): Uninsured motorist insurance pays for injuries to you and your passengers if you're hit by a driver with no insurance or not enough. Required in some states.
Personal injury protection (PIP) or medical payments (MedPay): These pay for injuries to you and your passengers no matter who caused the accident. Some states require one of them. These coverage types may also cover work wages lost due a car accident, child care you can't do and funeral benefits, among other things.
Rental reimbursement: Pays for a rental car while yours is being repaired due to an accident covered by your insurance. This is not the same as the rental car insurance you'd buy to rent a car for a vacation.
Towing and roadside assistance: In case your car breaks down or you get locked out.
Best and worst states for cheap full coverage car insurance
We looked at premiums reported by EverQuote users who had full coverage car insurance policies and found that people pay the least in Idaho, Maine and Iowa.
|Full coverage car insurance rates by state|
|Rank||State||Annual average premium paid|
|11 (tie)||North Dakota||$1,500|
|14 (tie)||New Mexico||$1,512|
|23 (tie)||North Carolina||$1,560|
|39 (tie)||South Carolina||$1,848|
|46 (tie)||District of Columbia||$2,016|
|Source: Premiums reported by EverQuote users, based on policies with liability of 100/300/50, collision, comprehensive and uninsured motorist coverage of 100/300. Rates are based on good drivers insuring a single vehicle from model year 2000 or newer. Rates are based on expenditures reported between 12/11/2015 and 8/7/2017. Your own rates will be different.|
Where to buy full coverage auto insurance
All major car insurance companies sell a full selection of coverage options, including Allstate, Geico, Progressive and State Farm.
Getting cheap full coverage car insurance
Here are ways to reduce your bill:
- Shop around: If you're looking for cheap car insurance, the biggest potential savings comes from comparing quotes from multiple companies. That's because rates can vary by hundreds of dollars for the same coverage from different insurance companies.
- Ask your insurance agent to review discounts: Make sure you're getting all the car insurance discounts you're eligible for.
- Raise your deductible on collision and comprehensive coverage: Ask your agent for the price difference for raising your deductibles. Typical deductibles are $500, $1,000 and $2,000. A deductible is the amount subtracted from your insurance check if you make a claim.
- Keep your driving record clean: Causing a car accident can lead to a rate increase at renewal time. By keeping distractions away and focusing on driving, you help to keep your rates down every time you hit the road. The average driver in the U.S. scores a "C" for safe driving, according to EverQuote's Safe Driving Report.
- Improve your credit: Poor credit can have a bigger impact on your rates than causing an accident. Improving your credit can help your rates.