What Does Full Coverage Car Insurance Consist Of?

Full coverage car insurance is great, but is it really necessary for you?

If you own a car and a valid driving license, the next thing you need to have is a car insurance. Legally, you’re not allowed to drive your car around even for a yard without having insurance. This means having auto insurance is top priority!

There are obviously options for different people and their insurance policy: full coverage and half coverage. This is decided based on the requirement of the policyholder as well as their budget.

Full Coverage Insurance Cheap

Full coverage car insurance means that your insurance company gives full protection to you and the car and bears every expense that comes with it.

The policy that is outlined for you during the start naturally covers the following losses when you pay your premiums regularly. These coverages include:

  • Damage to your property: If your car is stolen and you’re not able to retrieve it back, or if there have been vehicle damages due to a road accident or some other physical harm caused to your car.
  • Legal requirement: Any legal action that must be taken against someone who has intentionally or unintentionally caused harm to your property will also be covered in the policy.
  • Liability: Damage that you’ve caused to someone else’s property along with yours. Also known as collision coverage. All of this is covered in an affordable liability auto insurance package which covers your expenses when you’re at fault in a road accident.
  • Medical expenses: If there has been an injury or hospital bills need to be paid that have been caused by an accident, or if there has been a temporary loss of wages because of the accident will also be covered in the auto insurance policy.
  • Comprehensive coverage: This is if your car is damaged by a tree or a concrete pavement and you’re at fault.

Auto insurance policy covers the damage done to your car either by you, or a family member or even a distant friend who was driving your car with your consent.

A personal auto insurance guarantees protection to the driver himself, whether he is driving his own car, or someone else’s- with their permission of course. But you can’t use your car for commercial purposes; only to be used for your own personal driving. We’ll talk about commercial insurance later in this article.

Affordable Auto Insurance

Now that we know what auto insurance is and how it works, it is important to discuss all affordable auto insurance plans and know what matters while being light on the pocket.

Looking for a cheap affordable auto insurance may be your new task of the day, you have just gotten done with paying a hefty amount for your car which is why you’re now looking for affordable options.

We get that.

Here are some ways that you can easily get an affordable auto insurance rate.

There is a lot of pressure on you and how good of a driver you are. For instance, if you have a clean driving record with accidents at all, and you haven’t ever been charged for drunk driving- chances are you will pay very minimum premiums on your policy.

People who have had medical conditions or are a little older may pay more.

If you’ve ever done a driving course, chances are you will pay a lower amount of premiums.

Your mileage plays a huge role! For instance if you drive your car for 3000 miles a day, chances are you will get a costly car insurance plan. If you drive less than 1000 miles a day you can pay less. What smart people do is use means of mass transit to avoid driving their personal car so much. This is one great technique of cutting down the cost of your auto insurance.

Increasing deductibles leads to paying very low premiums overall. Deductibles are the amount of coverage that you can pay from your own pocket before the insurance company steps in. These usually range from $250-$1000 depending upon how much you can afford to contribute to the loss. If your deductible amount is high, chances are you will pay a very low rate of premium.

You might also NOT need full coverage, and just for the actual damage caused to your vehicle. Asking for miscellaneous coverage in the shape of car rental or roadside coverage you’re actually just making your premiums go VERY high. Think about it, what parts do you actually need covered? And then just settle on paying for those only.

Full Coverage Insurance Calculator

Auto insurance can be confusing. An online auto insurance coverage calculator can help you discover the right level of insurance coverage for your situation. Just answer a few quick questions about yourself, your assets, and your driving habits to get an estimate.

To know an estimate about how a policyholder’s age is going to cost in a full and half coverage option, refer to the table below.

Average full coverage vs. minimum insurance by age

Age Full Minimum Annual difference
16 $6,457 $2,497 $3,960
17 $5,216 $1,979 $3,237
18 $4,532 $1,667 $2,865
19 $3,327 $1,185 $2,142
20 $2,982 $1,040 $1,942
21 $2,454 $852 $1,602
22 $2,265 $790 $1,475
23 $2,104 $727 $1,377
24 $1,982 $684 $1,298
25 $1,760 $615 $1,145
30 $1,584 $563 $1,021
35 $1,564 $559 $1,005
40 $1,536 $554 $982
45 $1,522 $551 $971
50 $1,448 $535 $913
55 $1,420 $525 $895
60 $1,415 $526 $889
65 $1,457 $550 $907
70 $1,536 $588 $948
75 $1,701 $661 $1,040
80 $1,894 $748 $1,146

Note: Sample rates have been extracted online, courtesy of NerdWallet.

Do I need Full Coverage on a Financed Car?

Yes, you will need full coverage on a vehicle if you have a car loan. But if you drive a financed car, your lender will require you to carry liability insurance, collision insurance, and comprehensive insurance, also called full coverage.

Here is a list of all the best insurance companies in 2020 that are giving full and minimum coverage to policyholders.

Company Full coverage Minimum coverage Annual difference
Geico $1,198 $478 $720
State Farm $1,511 $624 $887
Progressive $1,766 $774 $992
Liberty Mutual $1,778 $900 $878
Allstate $1,834 $784 $1,050
Farmers $1,865 $926 $939

Full coverage vs. minimum average annual rates by state

Prices vary even more by state. Compare average rates below for minimum and full coverage car insurance in each state.

State Full coverage Minimum coverage Annual difference
National average $1427 $606 $821
Alabama $1,401 $558 $843
Alaska $1,180 $456 $724
Arizona $1,409 $581 $828
Arkansas $1,427 $558 $869
California $1,627 $636 $991
Colorado $1,570 $636 $934
Connecticut $1,683 $854 $829
Delaware $1,559 $839 $720
Florida $1,594 $690 $904
Georgia $1,176 $487 $689
Hawaii $937 $362 $575
Idaho $1,163 $437 $726
Illinois $994 $409 $585
Indiana $997 $309 $688
Iowa $1,306 $434 $872
Kansas $2,161 $983 $1,178
Kentucky $2,971 $1,150 $1,821
Louisiana $916 $367 $549
Maine $1,595 $800 $795
Maryland $1,299 $550 $749
Massachusetts $2,331 $1,285 $1,046
Michigan $1,280 $579 $701
Minnesota $1,385 $513 $872
Mississippi $1,339 $505 $834
Missouri $1,252 $395 $857
Montana $1,181 $420 $761
Nebraska $1,881 $902 $979
Nevada $1,056 $415 $641
New Hampshire $1,759 $994 $765
New Jersey $1,241 $484 $757
New Mexico $1,962 $1,026 $936
New York $1,075 $411 $664
North Carolina $1,235 $400 $835
North Dakota $1,051 $463 $588
Ohio $1,595 $583 $1,012
Oklahoma $1,228 $639 $589
Oregon $1,167 $413 $754
Pennsylvania $1,684 $820 $864
Rhode Island $1,458 $656 $802
South Carolina $1,245 $312 $933
South Dakota $1,170 $426 $744
Tennessee $1,471 $664 $807
Texas $1,248 $607 $641
Utah $993 $327 $666
Vermont $960 $381 $579
Virginia $1,261 $652 $609
Washington $1,527 $755 $772
Washington, D.C. $2,352 $1,188 $1,164
West Virginia $1,307 $504 $803
Wisconsin $1,005 $359 $646
Wyoming $1,184 $333 $851

Note: Sample rates have been extracted online, courtesy of NerdWallet.


Getting auto insurance depends on many factors like your age, driving history, credit scores etc., and the rates naturally differ from state to state and company to company. When the time comes, the insurance company provides protection by mitigating the expense otherwise caused by an accident.

In today’s time when getting into accidents or even the slightest damage to your car can be so costly, it is important to have your vehicle insured. This will not only cushion you from financial charges but also give you the peace of mind that you and your car are under protection.

And looking for affordable auto insurance is a real challenge. There are companies who charge a lot for insurance and you end up paying very high premiums! A cost effective insurance plan is very important and there are insurance companies that do just that.

Tony Bennett

Tony Bennett

Tony Benett makes his living in the insurance industry by teaching and consulting. He is also recognized by the legal profession as an expert on insurance coverages. His insurance experience includes having worked at the company level, owned an independent general agency and having worked for an insurance association. He has received various certificates over the past few years and helps his clients and readers by giving them a realistic outlook on what they can expect to achieve within their set targets. At Insurance Noon, he is known for his in-depth analysis and attention to details with accuracy. He has been published as one of the most referred agents by his peers in the insurance community. Tony loves the outdoors and most sport events. His passion other than providing excellent advice is playing golf.

Leave a Reply

Insurance Noon is the world's leading source of insurance related content on the web, focusing on industry news, buying guides, reviews, and much more.