If you are in the market for full coverage car insurance and looking to save some money, we have got you covered. Here, we have compiled a list of the cheapest companies for full coverage car insurance in 2023. We will explore the best picks and highlight the top contenders for most drivers, locals, and military personnel. Let’s dive in!
Best Pick: $99/mo
State Farm stands out as our best pick for full coverage car insurance, offering a fantastic rate of just $99 per month. This makes State Farm the cheapest insurance company available to almost all drivers across the country. Compared to the national average, State Farm’s full coverage policy saves you $49 per month, providing excellent value for money.
State Farm is the largest car insurance company in the United States, and its extensive reach means it can offer competitive rates. Additionally, State Farm has garnered a reputation for reliable customer service, with fewer complaints and satisfied customers, according to J.D. Power.
Cheapest for Most Drivers: State Farm
If you fall into the category of most drivers, then State Farm remains the top choice with its $101 per month rate. Although slightly higher than the $99 option mentioned earlier, State Farm’s full coverage policy still represents a competitive and budget-friendly choice.
Cheapest Local Company: Erie
Erie is another strong contender in the full coverage car insurance market, offering policies at just $101 per month. While it matches State Farm’s price point for most drivers, Erie operates primarily in 12 states, mainly concentrated in the East Coast and Midwest.
So, if you are located in one of these states—Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, Washington, DC, West Virginia, or Wisconsin—Erie might be your most affordable and localized option.
Cheapest for Military: USAA
If you are an active military member, veteran, or a family member, USAA offers the most cost-effective full coverage car insurance at an incredible rate of $91 per month. However, please note that USAA only caters to military personnel and their families, which means it is not accessible to the general public.
Nevertheless, USAA stands as a top choice for military personnel due to its affordability, excellent customer support, and high satisfaction ratings, as reported by J.D. Power.
What is Full Coverage Car Insurance?
Before we delve further into the details, let’s clarify what full coverage car insurance entails. Full coverage goes beyond the basic liability-only insurance, offering additional protection and peace of mind.
A liability policy covers injuries and damages to others and their property, whereas full coverage includes liability coverage, collision coverage, and comprehensive coverage. The comprehensive and collision components assist in covering damage to your vehicle in various accidents.
Typically, lenders require full coverage if you have a car loan or lease, ensuring protection for the asset against potential risks.
How We Chose These Companies
To compile our list, we used data gathered by ValuePenguin from all 50 states and Washington, D.C. The rates are based on a 30-year-old individual driving a 2015 Honda Civic EX with a clean driving record.
The selected companies have proven to offer low rates while maintaining high customer service ratings, making them stand out as the best car insurance providers for full coverage.
The Best Car Insurance Companies for Full Coverage
When considering the best car insurance companies for full coverage, we examined several factors, including cheap quotes, reliable service, and useful coverage options for newer vehicles.
Best Cheap Full Coverage Car Insurance Overall: State Farm
At just $99 per month, State Farm secures its position as the best cheap full-coverage car insurance overall. With a reputation for affordability and excellent customer experience, State Farm is a top choice for drivers across the nation.
Best Local Full Coverage Car Insurance: Erie
If you reside in one of the 12 states where Erie operates, you can take advantage of their affordable full coverage rates of $101 per month. Erie boasts an excellent customer service reputation, making it a great option for local residents.
Best Coverage Full Coverage Car Insurance: Travelers
Travelers provides a wide range of coverage options, allowing drivers to personalize their policies to meet their unique needs. With additional features like gap coverage, accident forgiveness, and rideshare coverage, Travelers is an attractive choice for those seeking comprehensive protection. However, it’s important to note that Travelers’ full coverage policy comes in at $146 per month.
Best Cheap Full Coverage Car Insurance for Military Families: USAA
For military personnel and their families, USAA is undoubtedly the best choice. With the lowest rates at $91 per month and consistently high customer satisfaction ratings, USAA is dedicated to serving the military community with top-notch insurance coverage.
What Does Full Coverage Car Insurance Cover?
Full coverage car insurance offers more extensive protection compared to liability-only insurance. In addition to liability, collision, and comprehensive coverage, a full coverage policy may also include coverage for uninsured and underinsured motorists, as well as personal injury protection in no-fault states.
Comprehensive insurance covers damages to your vehicle that are not directly related to driving incidents. These may include damage caused by weather events, such as hail or storms, falling objects like tree branches, and collisions with animals like deer on the road.
Collision insurance covers damages to your vehicle resulting from a collision with another vehicle or structure, such as a fence, mailbox, or pole. It also includes incidents like hit-and-run accidents and driving over large potholes.
Additional Coverages Required by Your State
A full coverage policy typically includes any additional coverage required by your state, such as uninsured and underinsured motorist coverage or personal injury protection (PIP).
Uninsured Motorist Coverage
Uninsured motorist coverage pays for injuries and property damage if an uninsured driver is responsible for an accident. This coverage is mandatory in some states.
Underinsured Motorist Coverage
Underinsured motorist coverage comes into play when you are hit by a driver who doesn’t have sufficient car insurance to cover your costs.
Personal Injury Protection (PIP)
PIP covers medical expenses if you sustain injuries in a car crash, regardless of who is at fault. It is typically required in “no-fault” states.
Is Full Coverage Car Insurance Worth It?
The decision to opt for full coverage car insurance depends on various factors, such as the value of your vehicle and your financial situation. If your car is valued at over $5,000, full coverage is often recommended as it helps avoid expensive repair costs.
Additionally, if you have a car loan or lease, lenders typically require full coverage to protect their investment. However, if you can afford to replace your car out of pocket and no longer have a loan or lease, you may consider dropping comprehensive and collision coverage to reduce your insurance costs.
How Much is Full Coverage Car Insurance by State?
Full coverage car insurance rates can vary significantly depending on your location. On average, full coverage policies are about two and a half times more expensive than minimum coverage policies.
For instance, Michigan drivers face the highest rates in the country, with full coverage costing around $399 per month. On the other hand, Vermont stands as the cheapest state, with full coverage policies available for as little as $92 per month.
How to Get Cheap Full-Coverage Insurance
If you’re looking to save on your full coverage car insurance, consider the following tips:
- Shop Around: Compare quotes from different insurance companies to find the most affordable option for your needs.
- Reduce Unnecessary Coverage: Assess your needs and drop any coverage that you may not require, making sure to strike the right balance between protection and cost.
How to Compare Full Coverage Insurance Quotes
When comparing full-coverage insurance quotes, keep the following factors in mind:
- Consistent Coverage Limits: Compare similar liability insurance limits and add-ons to ensure an apples-to-apples price comparison.
- Deductible Selection: Opt for the same deductible for comprehensive and collision insurance when requesting quotes to get accurate price comparisons.
- Multiple Quotes: Obtain quotes from various companies to explore the different coverage options and prices they offer.
How to Save on Car Insurance by Reducing Coverage
If you are looking to reduce your car insurance rates, you can consider the following options:
- Skip Comprehensive and Collision Insurance: If your car is inexpensive, you may choose to skip comprehensive and collision coverage and only keep liability coverage.
- Increase Your Deductible: Increasing your deductible can lead to lower premiums, but ensure that you choose a deductible that you can comfortably afford in case of an emergency.
- Lower Limits for Liability and Other Coverages: While lowering liability limits can save money, make sure you have enough coverage to protect yourself financially in the event of an accident.
Frequently Asked Questions
1. How much is full coverage insurance?
Full coverage car insurance costs an average of $148 per month or $1,780 per year. However, rates can vary significantly based on factors such as location and driving history. Some drivers may find rates as low as $99 per month from companies like State Farm or USAA.
2. Which company is the cheapest option for full coverage?
State Farm takes the crown as the cheapest widely available option for full coverage auto insurance, offering rates as low as $99 per month. Other affordable options include Erie, Auto-Owners, Farm Bureau, and USAA.
3. What does full coverage car insurance cover?
Full coverage typically includes collision and comprehensive coverage, along with more extensive liability coverage than your state’s minimum requirements. It may also encompass coverage for uninsured and underinsured motorists and personal injury protection, depending on the state and insurance company.
4. Do I need full coverage on a financed car?
Yes, lenders typically require a full coverage policy with collision and comprehensive coverage for financed cars. Once you pay off your loan, you have the freedom to decide whether you still need full coverage.
5. Does full coverage car insurance replace your car?
Yes, in the event of an accident, the collision coverage component of a full coverage policy will pay to repair or replace your car if you are at fault. If another driver is responsible for the accident, their liability coverage will cover the damages.
finding the most cost-effective and suitable full coverage car insurance requires diligent research and comparison. Remember to assess your needs, consider your budget, and choose a reputable insurance company that aligns with your requirements. By taking these steps, you can ensure that you have the necessary protection without breaking the bank.