Full coverage car insurance costs more than a liability-only policy because it includes a lot more coverage, which means that even the cheapest full coverage car insurance will cost more than a bare bones policy.
While there's no one definition of full coverage car insurance because it's not really an industry term, it's widely considered to be a policy that adds comprehensive and collision coverage to the other coverage required by your state's laws.
What is considered cheap full coverage car insurance is going to be, by its nature, more expensive than buying liability-only. But it's possible get the full coverage you need to protect your car and yourself at an affordable rate.
Key takeaways
- The best way to find cheap full coverage car insurance rates is to do your research and comparison shop.
- The cheapest full coverage auto insurance company depends on your state, but nationwide American National Finance has the lowest rates.
- Sometimes, like after a DUI, you can’t find cheap full coverage car insurance, but you might still get a better deal if you shop around.
- Which companies have the cheapest full coverage car insurance rates?
- Cheapest full coverage car insurance companies by state
- Cheapest full coverage car insurance after getting a ticket
- Cheapest full coverage car insurance rates after a DUI
- Cheapest full coverage car insurance with higher coverage limits
- Cheap full coverage insurance for drivers with poor credit
- Is the cheapest car insurance a good choice?
- Frequently asked questions: Full coverage auto insurance
- Methodology
Which companies have the cheapest full coverage car insurance rates?
Insurance.com’s analysis of car insurance rates from top companies for full coverage included companies of all sizes. Not all of these companies will be available everywhere, but major, national companies are listed as well.
The cheapest full coverage auto insurance out of all the companies is American National Finance, with an annual premium of $857 a year, or $71 a month.
Of the major, well-known insurance companies, Nationwide has the lowest full coverage rate at $1,190 a year or $99 a month.
There are a few things to know as you look at the table below. As you can see, we have insurance companies from all around the country, starting from their cheapest rates to the most expensive for their full coverage annual premium. Next to that, you will see the average rate for state minimum coverage.
This column shows what the average cost of minimum coverage is in your state; this is the coverage that you need to have by law. As you probably know, your state requires you to have a certain amount of car insurance to be liable for injuries and damage to others. If you choose, you don’t need to buy insurance to cover the damage to your own car.
But buying state minimum coverage is a huge risk. Unless you’re driving a car that isn’t worth much, you will want coverage for your own car. A full coverage policy will provide that coverage.
So as you look at the table, you can start to get a sense of what the cheapest car insurance companies are – and how much more you’ll spend beyond the cost of state-minimum car insurance. Remember that these rates are averages, and your rates will vary.
| Company | Full coverage annual premium | State-minimum annual premium |
|---|---|---|
| American National Finance | $857 | $187 |
| Palisades | $1,073 | $535 |
| Mapfre | $1,091 | $270 |
| Vermont | $1,172 | $231 |
| Nationwide | $1,190 | $495 |
| USAA | $1,192 | $294 |
| North Carolina Farm Bureau | $1,218 | $353 |
| Safety | $1,226 | $426 |
| Erie Insurance | $1,254 | $334 |
| Berkshire Hathaway | $1,266 | $326 |
| New Jersey Manufacturers | $1,284 | $494 |
| Frankenmuth | $1,339 | $302 |
| Mercury | $1,341 | $446 |
| American Family | $1,362 | $563 |
| Auto Owners | $1,406 | $355 |
| State Farm | $1,436 | $432 |
| Southern Farm Bureau | $1,478 | $333 |
| Travelers | $1,488 | $531 |
| Western National Mutual | $1,517 | $355 |
| Island | $1,668 | $415 |
| Progressive | $1,686 | $551 |
| Arbella Insurance | $1,696 | $483 |
| Westfield | $1,806 | $394 |
| Shelter | $1,840 | $530 |
| Auto Club | $1,953 | $517 |
| Farmers | $1,980 | $632 |
| Country | $2,017 | $453 |
| Allstate | $2,086 | $555 |
| Mercury | $2,167 | $719 |
| Kentucky Farm Bureau | $2,204 | $432 |
| Hartford | $2,341 | $623 |
| Iowa Farm Bureau | $2,369 | $305 |
| National | $2,397 | $786 |
| Kemper | $2,422 | $694 |
| Automobile Club MI | $2,443 | $533 |
| CSAA | $2,453 | $525 |
| Chubb Ltd | $2,479 | $372 |
| Metropolitan | $2,537 | $835 |
| Oklahoma Farm Bureau | $2,642 | $509 |
| Safeway | $2,810 | $1,075 |
| The Hanover | $4,350 | $1,601 |
| Sentry | $4,803 | $1,588 |
Let’s take a look, for instance, at American National Finance, an insurance company that operates in all 50 states. If you were to buy state minimum insurance coverage (the cheapest insurance you can legally get away with), you’ll pay only $187 a year for car insurance. If you want full comprehensive and collision insurance (so that your insurance will pay for damages to your car and another car), you would have to pay $670 additional dollars – and thus $857 for the year (about $71 a month).
Next, take a look at the most expensive car insurance, Sentry, which, on average, will cost somebody $4,803 for full coverage annual premium and $1,588 for state-minimum car insurance. If you were to buy insurance from them, on average, to get full comprehensive and collision insurance, you’d pay $3,215 more than the minimum your state requires.
In between both of these lesser-known insurers is the biggest car insurance company in the nation: State Farm. The average cost of full coverage car insurance with State Farm is $1,436 a year, or $120 a month.
Cheapest full coverage car insurance companies by state
The cost of full coverage car insurance varies a lot from state to state.
Michigan has the highest auto insurance rates in the country. On average, you'll pay around $3,141 for full coverage.
Ohio, right next to Michigan, has one of the lowest insurance rates in the nation (third lowest), with rates averaging $1,191 a year. The difference can be attributed in large part to Michigan’s no-fault car insurance laws. Despite recent changes to the law, rates remain high in the state.
A sparsely populated state, Wyoming is near the middle of the pack for full coverage car insurance rates. The average cost of full coverage car insurance is $1,782 a year.
Texas also lands in the middle. You'll pay a full coverage annual average rate of $1,823 a year, which makes cheap full coverage car insurance in Texas easier to find than in some other states.
Maine has the cheapest full coverage auto insurance rates at an average of $1,080 a year.
Cheapest full coverage car insurance after getting a ticket
After a ticket, you can expect your rates to go up. That’s because the insurance company now sees you as a higher risk.
Take a look at the average rates below from top car insurance companies with a speeding ticket.
| Company | Average full coverage rate with a speeding ticket |
|---|---|
| Geico | $1,449 |
| State Farm | $1,807 |
| Nationwide | $1,900 |
| Progressive | $1,916 |
| Farmers | $2,146 |
| Allstate | $2,239 |
Of course, rates will vary for other types of tickets and by location. If you’re wondering how much your car insurance will be after getting a ticket – you should check out Insurance.com’s traffic ticket calculator. You can pick a violation and your state and type in how much your premium is, and it’ll tell you much more you can expect to pay.
Cheapest full coverage car insurance rates after a DUI
If you’ve been convicted of a DUI (drinking under the influence), your rates will go up. That’s just how it is. There’s really no such thing as cheap full coverage car insurance for high-risk drivers after being arrested for drinking and driving – especially if you’ve had an accident.
Not that you can’t get insurance after a DUI. You can. It just won’t be cheap. Still, some insurers will be less expensive than others. Take a look at some average rates based on Insurance.com’s 2022 rate analysis below.
| Company | Average full coverage rate with a DUI | Average percent increase after a DUI |
|---|---|---|
| State Farm | $1,633 | 38% |
| Progressive | $2,019 | 33% |
| Farmers | $2,228 | 47% |
| Allstate | $3,132 | 65% |
| Nationwide | $3,563 | 125% |
If you have insurance with Progressive, you'll see your insurance go up the least of the big five insurers with an average increase of 33%.
State Farm has a slightly higher average increase by percentage but the lowest rate for full coverage car insurance after a DUI overall. Farmers insurance customers who get a DUI can expect to see their rates climb by 47%.
At Allstate, the average increase is 65%.
Nationwide customers see, on average, a whopping 125% increase after a DUI. Nationwide, of the five, has the highest average rate for a DUI at an average rate of $3,563 a year. It’s easy to see how shopping around after a DUI can make a big difference.
Cheapest full coverage car insurance with higher coverage limits
Let’s say you have a car insurance policy with limits of 25/50/25 (the average state minimum coverage), and you’re in an at-fault accident. Your insurance will pay up to $25,000 per person for injuries and up to $50,000 per incident. The most it will pay for property damage is $25,000.
In many states, the minimum coverage levels are even lower (and in a few states they are higher).
In many cases, the minimum coverage isn’t enough. What if you plow into a van full of passengers, and they all have a lot of injuries totaling far more than $50,000? Or, imagine you’re responsible for totaling someone else’s brand new Mercedes-Benz, valued at much more than $25,000. You'll be responsible for the cost above your policy limits.
Increasing your liability limits doesn’t cost as much as you think. For most drivers, you can double the coverage to 50/100/50 without coming close to doubling your rates.
Cheap full coverage insurance for drivers with poor credit
Your credit history can affect your car insurance rates. The difference between an insurance policy with a consumer who has good credit -- and one who has poor credit can be a difference of more than 100%, according to Insurance.com’s 2022 rate comparison. Many people feel it’s not fair, but insurance companies go by the numbers, and their data says that people with poor credit tend to make more choices that lead to bad driving.
Below you’ll see rates from top companies for a driver with good credit compared to a driver with poor credit.
| Company | Average full coverage rate with good credit | Average full coverage rate with poor credit |
|---|---|---|
| Nationwide | $1,591 | $2,193 |
| Allstate | $1,868 | $2,244 |
| Progressive | $1,483 | $2,644 |
| Farmers | $1,753 | $3,039 |
| Geico | $1,109 | $2,094 |
| State Farm | $1,400 | $3,012 |
Although Geico starts out as the cheapest with good credit, rates take a huge leap with bad credit. The cheapest option among the companies listed is Nationwide, with an increase of $603 from good to poor credit.
It’s worth noting that some states have outlawed the use of credit scores for car insurance rates.
Is the cheapest car insurance a good choice?
That’s difficult to say, but one thing is for sure – all insurance companies are different. While some might have cheap full coverage car insurance for young drivers, they may not offer good service. Rates are not the only thing to consider when you’re shopping for car insurance. You want to be sure that you’re also getting good coverage and a company you can count on.
Make sure you’re aligning yourself with a reputable company – and actually read through the policy before signing up.
You could, after all, pay for cheap insurance – and discover that your policy doesn’t really cover as much as you thought it would after a car accident. The only thing worse than paying too much for car insurance is discovering after an accident that it was a waste of money because your insurance didn’t pay the claim.
Again, while you want the lowest price for car insurance, you also want to make sure you’re working with an insurer that has a good reputation. Look the policy over carefully before you buy so you understand what you’re getting for your money. It’s a lot of research for something that you hope you don’t have to use – but it’ll be worth it if you do need to use it.
Frequently asked questions: Full coverage auto insurance
Do I need full coverage car insurance?
You don’t need full coverage car insurance by law, but if you have a loan or lease on your car, you will be required by the lender or lessor to carry a full coverage policy. If not, it’s optional.
If you feel like you’re always living paycheck to paycheck, you might not think you can afford full coverage car insurance at any price.
However, there are some good arguments for fitting full coverage insurance into your budget. It may seem like a waste of money if you think you’re an excellent driver – but everyone makes mistakes. And full coverage isn’t just about accidents. You could have your car parked in the driveway and rarely drive it, but if a tree falls on it and you aren’t fully covered, you will likely regret it. If you have a car that you couldn’t easily afford to replace, full coverage car insurance will protect it.
Full coverage vs. basic liability auto insurance: Which is more expensive?
Basic liability auto insurance will always be cheaper than full coverage if you’re comparing rates for the same driver. However, a good driver with good credit may pay less for full coverage than a driver with tickets, accidents, or poor credit pays for basic liability.
That said, in general, full coverage is more expensive, but it also provides a lot more coverage for the money. Without it, you will have no coverage at all for your own car.
How can you get cheap full coverage auto insurance with no down payment?
While you may see advertisements for no down payment car insurance, it doesn’t really exist. Most of these ads mean you don’t have to pay anything beyond the first month’s payment to start the policy.
Car insurers will want you to make that first monthly payment immediately. The moment you make a car insurance payment, you are covered if anything bad happens to your car – assuming that you have full coverage auto insurance.
Is full coverage auto insurance right for you?
That really depends on your situation. Full coverage car insurance is a good choice for most people, and it’s certainly right for you if you have financed or leased your vehicle. That said, if your car isn’t worth much and it would cost more (or close to it) to pay for the insurance than to simply replace it yourself, full coverage car insurance may not be a good choice.
Methodology
Insurance.com in 2022 commissioned Quadrant Data Services to field rates for a driver with full coverage auto insurance. Rates are based on a driver profile of a 40-year-old single male driving a 2021 Honda Accord.
