Full coverage

Full coverage refers to a combination of auto insurance policies that typically includes liability, collision, and comprehensive coverages. Full coverage does not have a single legal definition in any state, including examples like California and Texas.

Insurers such as Geico and State Farm use “full coverage” in marketing but clarify it is not a specific policy type. Lenders commonly require full coverage on leased or financed vehicles, with about 80% of financed cars in the US falling under this mandate.

Full coverage pays for both at-fault damage to your car (collision) and non-collision events like theft or hail (comprehensive), as seen in claim data from Allstate’s annual report. Typical annual premiums for full coverage average $2,014 nationwide as of 2023, according to the Insurance Information Institute.

Deductibles for full coverage often range from $500 to $1,000 per event, affecting out-of-pocket costs during claims. Full coverage never covers routine maintenance or mechanical breakdowns; warranty companies like CarShield fill those gaps instead.

Drivers with older vehicles–e.g. over ten years old with values below $4,000–often drop full coverage due to limited payout potential compared to premium cost, in a statement issued by the Insurance Information Database. Full coverage always includes state-mandated minimum liability limits; for example, Illinois requires 25/50/20 ($25,000 bodily injury per person/$50,000 per accident/$20,000 property damage).

Full coverage does not guarantee rental reimbursement unless you purchase additional add-ons; most insurers offer rental car coverage as a rider costing $2–$15 monthly.