Updated April 2026
What Is Full Coverage Insurance?
Full coverage combines three distinct coverage types: liability (which pays for damage and injuries you cause to others), collision (which pays for damage to your car from crashes regardless of fault), and comprehensive (which pays for damage to your car from non-collision events like theft, hail, or vandalism). When you carry all three, you have protection for other people's property and injuries, plus protection for your own vehicle in nearly every damage scenario. The liability portion typically includes both bodily injury and property damage coverage with limits you choose, while collision and comprehensive usually carry a deductible you select (commonly $500 or $1,000). This combination ensures that whether you're at fault in an accident, your parked car is stolen, or a deer runs into your vehicle, you have a path to repair or replacement.
- You're distracted at a red light and hit the car in front of you. The other driver has $9,000 in medical bills and $6,500 in vehicle damage. Your own car has $4,200 in front-end damage. Your liability coverage pays the full $15,500 to the other driver (assuming your limits are high enough). Your collision coverage pays the $4,200 to repair your car, minus your $500 deductible, so you receive $3,700. Without full coverage, you'd pay the $4,200 out of pocket.
- A severe hailstorm causes $7,800 in dents and broken windows while your car is parked at home. Comprehensive coverage pays for the repairs minus your $1,000 deductible, so you receive $6,800. No other driver is involved, so liability doesn't apply. If you only carried liability and collision, you'd have no coverage for this claim and would pay the full $7,800 yourself.
- You're hit by a driver who flees the scene, leaving $5,300 in damage to your vehicle. Your collision coverage pays for repairs minus your deductible. If you have uninsured motorist property damage coverage (an optional add-on to full coverage), it may also apply depending on your state. Without collision, you'd rely entirely on uninsured motorist coverage if you carry it, or pay out of pocket if you don't.
Who Needs Full Coverage Insurance?
How Much Does Full Coverage Insurance Cost?
- Vehicle value and replacement cost — comprehensive and collision premiums are calculated as a percentage of your car's actual cash value, so expensive vehicles cost significantly more to insure.
- Deductible selection — choosing a $1,000 deductible instead of $500 can reduce your collision and comprehensive premiums by 15% to 30%.
- Driving record — at-fault accidents in the past three to five years can increase full coverage rates by 40% to 60% since collision coverage will likely pay claims on your behalf.
- Credit-based insurance score — in states where it's allowed, poor credit can increase full coverage premiums by 50% or more compared to excellent credit.
- Location — urban areas with higher collision and theft rates typically see 20% to 40% higher comprehensive and collision premiums than rural counties.
- Annual mileage — driving more than 12,000 miles per year increases collision risk and can raise premiums by 10% to 20%.