What does full coverage car insurance include?

Full coverage is not a single policy type — it typically means combining liability, collision, and comprehensive coverage. Liability pays for damage and injuries you cause to others. Collision covers damage to your car from accidents (regardless of fault). Comprehensive covers non-collision damage: theft, vandalism, fire, hail, flooding, and hitting an animal. Lenders require full coverage on financed or leased vehicles.

How much does full coverage car insurance cost in 2026?

The national average for full coverage car insurance is approximately $1,980 per year ($165/month) in 2026. Rates vary significantly by state: Michigan ($2,800+), Louisiana ($2,600+), and Florida ($2,500+) are most expensive. Idaho ($1,100), Maine ($1,150), and Vermont ($1,200) are cheapest. Your individual rate depends on age, driving record, vehicle, credit score, and location.

What is the difference between liability-only and full coverage?

Liability-only coverage pays for damage you cause to other people and their property — it does not pay for damage to your own car. Full coverage (liability + collision + comprehensive) also pays for your vehicle's repair or replacement. Liability-only averages $600–$700/year nationally. Full coverage is $1,800–$2,400 — the gap is significant, but worthwhile for newer or financed vehicles.

When should I drop full coverage and go liability-only?

Consider dropping comprehensive and collision when your car's value falls below $4,000–$5,000 or when your annual premium for those coverages exceeds 10% of the car's value. If your car is worth $3,000 and you pay $900/year for collision and comprehensive, a claim payout of $3,000 minus a $1,000 deductible = $2,000 net — you break even in about 2 years. Once the math no longer favors full coverage, switch to liability-only.

What is the cheapest company for full coverage car insurance?

The cheapest companies for full coverage nationally in 2026 include USAA (military families only), Geico, Progressive, and State Farm. Erie Insurance is highly competitive in the Mid-Atlantic and Midwest. Actual cheapest varies by driver profile — someone with a clean record in Ohio gets different results from someone with a DUI in Florida. Always get at least 3–4 quotes before purchasing.

Cheap Full Coverage Car Insurance 2026 — Average Costs and How to Lower Them

Full coverage car insurance — liability + collision + comprehensive — averages $1,980 per year ($165/month) nationally in 2026. Rates range from under $1,200 in the cheapest states to over $2,800 in Michigan and Louisiana. Shopping multiple insurers and adjusting your deductible can cut your premium by 20–40%.

Full Coverage Car Insurance Rates by State (2026)

State	Average Annual Premium
Michigan	$2,840
Louisiana	$2,680
Florida	$2,520
California	$2,310
New York	$2,260
Texas	$2,150
National Average	$1,980
Ohio	$1,420
North Carolina	$1,320
Maine	$1,160
Idaho	$1,110

What Full Coverage Includes

Liability (required in nearly every state):

Bodily injury: pays others’ medical bills if you cause an accident
Property damage: pays to repair others’ vehicles and property

Collision:

Pays for your car’s repair/replacement after an accident, regardless of fault
Subject to your collision deductible (typically $500–$2,000)

Comprehensive:

Pays for non-collision damage: theft, vandalism, fire, hail, flood, hitting a deer
Subject to your comprehensive deductible (typically $100–$1,000)

Common optional add-ons: Uninsured/underinsured motorist coverage, gap insurance (financed cars), rental reimbursement, roadside assistance.

How Much Does Each Coverage Type Cost?

Coverage Type	Average Annual Cost
Liability only	$640
+ Comprehensive	$840
+ Collision	$1,290
Full (liability + comp + collision)	$1,980

Collision is the most expensive component — accounting for roughly 35–40% of a full coverage premium.

8 Ways to Get Cheap Full Coverage

Raise your deductible — going from $500 to $1,500 collision deductible saves 15–25% on that coverage component
Bundle home and auto — most insurers offer 5–15% multi-policy discount
Take a defensive driving course — often qualifies for 5–10% discount
Drive less — low-mileage discounts kick in below 7,500–10,000 miles/year (pay-per-mile options like Metromile may be cheapest)
Improve your credit score — in most states, a 720+ score vs. 600 can reduce premiums 15–30%
Install a telematics device — usage-based programs (Snapshot, DriveEasy, Drive Safe & Save) can cut rates 10–30% for safe drivers
Buy a less-expensive-to-insure vehicle — SUVs and trucks often cost more to insure than sedans; minivans and family vehicles are often cheapest
Shop every year at renewal — rates shift; loyalty rarely pays in auto insurance

When Full Coverage Is Worth It

Full coverage makes sense when:

Your car’s current market value is above $10,000
You are financing or leasing (lender requires it)
You could not afford to replace your car out-of-pocket
You drive in an area with high theft, hail, or flood risk

When to Drop Collision/Comprehensive

Drop collision and/or comprehensive when:

Your car’s value is below $4,000–$5,000
Your annual premium for comp + collision exceeds 10% of the car’s market value
You have sufficient savings to self-insure a total loss

Internal Links

Cheapest Car Insurance in Michigan — highest-cost state guide
Cheapest Car Insurance in New York — high-cost metro area
Cheapest Car Insurance in Massachusetts — New England rates
Largest Auto Insurance Companies — compare top carriers

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy