The best and cheapest full coverage car insurance

by Stable MARK | Updated: August 26, 2022
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If you're looking for the best cheap full coverage policy, Geico is the way to go. With an average rate of just $948 per year, or $79 per month, it's one of the most affordable options out there. Plus, it's widely available, so you shouldn't have any trouble finding it.

In this article, you’ll learn what full coverage is, what it covers, how much it cost, how to get it, and other information. Let’s go.

Although the average full coverage car insurance policy costs $2,040 per year or $170 per month, it is well worth the price. This type of policy not only includes collision and comprehensive coverage but also protects you from having to pay out of pocket if your car is damaged or stolen. In the long run, full coverage car insurance is a wise investment.

The cheapest full coverage car insurance companies

If you're looking for the best full coverage auto insurance, it's important to compare quotes from different companies. By doing this, you can be sure to find the cheapest option that meets your needs.

Geico is the most affordable company for full coverage policies, with an average rate of just $1,296 per year, or $108 per month.

The best and cheapest full coverage car insurance
Graph 1: The best and cheapest full coverage car insurance
  • Erie Insurance is only slightly more expensive than State Farm, on average. For just $114 per month or $1,368 per year, you can get coverage from a reliable and well-known company. Plus, Erie Insurance is available in 12 states, so it's likely that you can find coverage in your area.
  • Farm Bureau insurance is a great option for anyone looking for comprehensive coverage at an affordable price. You can find a Farm Bureau in nearly every state, and a full coverage policy only costs $132 per month.
  • If you are an active or retired military member or family member, USAA offers the cheapest full coverage option at $97 per month.

Although full coverage car insurance costs more than liability-only insurance, it offers greater protection. A liability policy will only cover damage to other drivers, not your own vehicle. Full coverage includes not only liability coverage, but also collision and comprehensive coverage. This will protect you against damage to your car in most types of accidents. Your lender will typically require full coverage if you have a car loan or lease.

Top rated car insurance company

Company Rating Annual average rate
USAA $97
Geico $108
Erie Insurance $114
Farm Bureau $132
Auto-Owners $133
American Family $145
State Farm $159
Progressive $169
Nationwide $176
Travelers $178
Allstate $195
Farmers $209
Average   $170

How much is full coverage car insurance by state?

The cost of auto insurance can vary significantly depending on which state you live in. On average, full coverage policies are nearly three times as expensive per month as minimum coverage policies. This means that if you're looking to save money on your car insurance, it's worth considering moving to a state with lower rates.

*USAA offers unbeatable rates and services only to current and former military members and their families.

If you're looking for the best value on car insurance, you'll want to compare rates for both minimum and full coverage policies. In some states, the difference in price between the two types of coverage is much greater than in others. The states of South Dakota, Wyoming, and Iowa see the greatest percentage increase in price when buying full coverage insurance instead of minimum coverage. In contrast, the states of Florida, Michigan, and Maryland have the smallest percentage jump in price. So, if you're trying to save money on your car insurance, it's important to compare rates for both types of coverage in your state.

The best car insurance companies for full coverage

When deciding which car insurance company to go with, always consider more than just the price. Look for a company that offers good customer service and comprehensive coverage. The best car insurance companies will have all of these factors, plus low rates.

The best full coverage car insurance companies

If you're looking for the best full coverage car insurance, here are three companies to consider:

  • State Farmis a widely available company with great coverage options.
  • Erie Insurance is a great option for drivers in the Midwest and East Coast. Their rates and coverage options are great.
  • USAA is the best company for military families. They offer great discounts and have great customer service.

State Farm is the best widely available full coverage car insurance

If you're looking for the cheapest insurance company available, State Farm is your best option. The company has lower rates than every other large insurer, as well as many regional insurers. Plus, State Farm is the largest insurer in the United States, so you can be sure you're getting a reliable policy.

State Farm is not only affordable but also has a great reputation for customer service. It has a low rate of customer complaints and high marks for claims satisfaction from J.D. Power.

If you're looking for a great option for full coverage insurance, State Farm is a great choice. They offer affordable rates and excellent customer service, making them a great option for anyone in the market for insurance.

Erie is the best local full coverage car insurance

Erie offers the best of both worlds in terms of affordable full coverage rates and great customer service. The only problem is that it's only available in 12 states, mostly in the Midwest and East Coast.

If you live in any of the following states, you have access to Erie insurance: Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, Washington D.C., West Virginia, and Wisconsin.

USAA is the best full coverage car insurance for military families

USAA is often lauded as one of the best car insurance companies in the United States. In fact, our rate analysis found that it has the cheapest full coverage policies. Furthermore, our research indicates that USAA also has some of the lowest complaint rates in the country. This is backed up by third-party research, such as J.D. Power's Auto Claims Satisfaction Study, which ranks USAA as number one for customer satisfaction.

What is a full coverage policy and is it worth to have one?

Although a full coverage insurance policy is more expensive than a liability-only policy, it may be worth the extra cost.

A full coverage auto policy is the best way to protect yourself on the road. It typically includes comprehensive and collision coverage, which goes above and beyond the minimum coverage required by your state. This way, you can rest assured knowing that you and your vehicle are fully protected in the event of an accident.

It's important to have both collision and comprehensive coverage for your own protection, as well as liability coverage to protect other drivers.

If you can reasonably afford to replace your car if it is damaged or totaled, you should drop your full coverage policy which includes comprehensive and collision insurance. This will save you money on your monthly premiums.

You should only consider dropping full coverage on your car insurance when the value of your car is between four and six times the cost of adding comprehensive and collision coverage. This rule of thumb applies when your car is between 8 and 12 years old and is worth approximately $5,000 to $10,000.

Common car insurance coverages

Although not required by state law, comprehensive and collision insurance are two of the most common types of full coverage auto insurance. These coverages may be required if you have a car loan or lease.

Comprehensive insurance

Comprehensive insurance covers damage to your vehicle from events that are out of your control, like storm damage or vandalism. This type of coverage includes, but is not limited to:

  • Impact on animals on the road
  • The destruction caused by weather events such as hail storms or falling trees
  • Vandalism or theft

Collision insurance

If you're involved in a collision, whether with another car or a stationary object, your collision insurance will cover the damages. This type of insurance protects you from costly repairs or replacements after an accident. Some examples of what collision insurance covers include:

  • A crash with another car
  • Hitting a mailbox or fence
  • A hit-and-run

Collision and comprehensive insurance both come with deductibles. This is the amount you have to pay before your insurance company will start covering the damage to your vehicle. For example, if your car is totaled and it was worth $5,000, but you have a $1,000 deductible, your insurer will give you $4,000 to replace it. You would have to pay the remaining $1,00.

Other coverages you could include in your full coverage policy

When an insurer uses the term "full coverage," they may be referring to a policy that includes the full suite of available coverages. Some of the types of coverage you might consider for your car insurance policy include liability, comprehensive, and collision coverage. However, this is not an exhaustive list. You might also want to consider additional types of coverage, such as:

Uninsured motorist coverage: If you live in a state where it is required, uninsured motorist coverage can protect you financially if you are in an accident caused by another driver who does not have insurance. Even if it is not required in your state, this coverage can give you peace of mind knowing that you will not be left with expensive bills if you are involved in such an accident.

Underinsured motorist coverage: If you are ever in an accident with an at-fault driver who does have car insurance but whose limits are not high enough to cover your costs, you will be glad you have underinsured motorist coverage. This type of coverage will reimburse you for your expenses, up to your policy limit. So, make sure you are fully protected by choosing a policy with adequate underinsured motorist coverage.

Personal injury protection (PIP) is vital insurance coverage that covers the costs of injuries you sustain in a crash, regardless of fault. In "no-fault" states, PIP may be required by law. This coverage protects you and your family financially in the event of an accident, so it's important to have it in place.

Coverages like these might be required by law depending on what state you live in, so it's a good idea to make sure you're familiar with your state's requirements.

Is a full coverage policy worth it?

If your car is still valuable enough that you can't readily pay for repairs, it's worth buying a full coverage policy to protect its value. However, over time full coverage becomes a worse deal because the price of full coverage insurance drops more slowly than the value of an aging car. It is recommended that you drop full coverage on your car insurance when the value of your car (minus the deductible) is four to six times what you would pay for a year of coverage. This will save you money and give you the coverage you need. For example, using the average cost of an Erie full coverage policy as a sample, we would consider dropping full coverage in the following case:

The cost to add full coverage [A]
Current value of your car [B]
Collision/comprehensive deductible [C]
Years of full coverage it would take to pay to replace your car [(B-C)/A]

If you want the lowest possible payout if your car is destroyed, you should get full coverage insurance. If you are risk-averse, you should wait until the value of your car is two or three times a year's premium. If you are comfortable with risk or have a healthy emergency fund, you can drop full coverage once your car's value is six or seven times what you pay per year to protect it.

Although it may cost more to have full coverage on your car, it is worth it in the event of an accident. If you have a less valuable car, the extra cost of full coverage won't actually pay off if you're in an accident. It is better if you save the money and put it toward repairs or a new vehicle.

There are several factors that play into the math that determines whether or not full coverage is the right choice for you.

  • Although the cost of adding full coverage to your car may vary, it is typically cheaper than you might think.
  • You can lower your deductible, which affects both the price of your policy and the payout of a claim.
  • The value of your car may also decline each year, but it is still worth having the extra protection.

How to get cheap full coverage insurance

There are two ways to get cheaper full coverage car insurance in the short term: shop around and reduce coverages. By shopping around and comparing rates from different insurers, you can find the best deal on car insurance. You can also save money by reducing coverages that you don't need, such as collision or comprehensive coverage.

It's always a good idea to shop around for insurance rates before settling on a company. You may be able to get the same coverage for a lower price if you compare rates from different companies.

By reducing the coverage, you don't need, you can lower your rates. You'll get less protection from the insurer, but depending on your personal situation, it may be a trade-off worth making.

How to shop around for full coverage insurance

The goal of shopping around for insurance is to find a policy that offers the same level of protection for a lower price. When comparing policies from different insurers, you should make sure that you:

It is advisable that you select the same liability limits when shopping with different insurers. For example, if you select $27,000 in bodily injury liability per person, $53,000 in bodily injury liability per accident, and $26,000 in property damage liability per accident with one insurer, you should select the same coverage with comparison insurers.

The amount you pay for your deductible can have an impact on the cost of your insurance policy. A higher deductible can lower the cost of your policy and vice versa. When choosing a deductible for your comprehensive and collision insurance, it is important to consider how much you are willing to pay out of pocket in the event of an accident.

Coverage limits should be equal for all other coverages, such as uninsured/underinsured motorist coverage, personal injury protection, and more. Additional protections will result in increased expenses.

Even though different insurers offer the same coverage, their prices can vary greatly. So, make sure to shop around and get the best deal! The best and cheapest car insurance company for your neighbor may not be the same as the best one for you.

How can you lower your insurance premium by reducing your coverage?

There are several ways you can lower your insurance premiums, such as reducing your coverage. For example, you might:

If you have a low-value car, it's not worth paying for comprehensive and collision insurance. You'll save money in the long run by skipping these types of coverage.

By increasing your deductible, you can lower your insurance premiums. This means you would have to pay more out of pocket if you made a claim, but it could save you money in the long run.

By reducing your liability limits, you are essentially reducing the protection that your insurer offers. This could end up being very costly if you are involved in an accident and found to be at fault. You could be left with expenses that exceed the coverage limit, leaving you to foot the bill. It's important to have adequate protection in case of an accident, so be sure to choose liability limits that give you the peace of mind you need.

Although it may make financial sense to drop certain coverages that you don't need, you also risk having insufficient coverage after an accident. Keep in mind that accidents can be expensive, and you don't want to be caught without the right level of protection.

If you increase your deductible, you'll have to pay more out of pocket if you need to make a claim. This means you could end up paying more from your savings after an accident. On the other hand, if you decrease your liability limits, you could be left with unexpected costs if your insurance doesn't cover a major accident.

What does full coverage car insurance cover?

A full coverage policy is the best way to make sure you're fully protected on the road. It typically includes more liability coverage than your state's minimum requirements, plus collision and comprehensive coverage. In some states, it may also include uninsured/underinsured motorist coverage and personal injury protection. The definition of what full coverage is can vary by insurer. Make sure you check your state's requirements and your quote to make sure you're getting the coverage you expect.

Does full coverage car insurance replace your car?

If you're involved in an accident, you want to be sure that you're covered. Collision coverage is an important part of your car insurance policy. It should cover the full cost of repairs if your car is damaged in an accident or pay out the current value of your car if it is totaled. This coverage can give you peace of mind in knowing that you will not be left with a huge bill if your car is involved in an accident. If another driver damages your car in an accident, their liability coverage would pay for repairs instead. So be sure to ask about collision and liability coverage when you're shopping for car insurance.

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