When it comes to insuring your car or yourself as a driver, you have many options to choose from. Two of the more popular questions are, “What is full coverage auto insurance?” and, “Should I get full coverage auto insurance?” Full coverage insurance is not a single policy; it’s shorthand for combining liability with comprehensive and collision so you have broader protection, including for damage to your own vehicle. State liability rules and minimum limits vary, and several jurisdictions have recently raised them (for example, California to 30/60/15 effective Jan 1, 2025, with another step-up scheduled in 2027; Virginia to 50/100/25 in 2025; New Jersey’s standard policy scheduled to rise again in 2026) — see overviews and primary sources from the Insurance Information Institute, California SB 1107, Virginia DMV, and New Jersey DOBI.
What does full coverage car insurance consist of?
- Liability coverage
- Comprehensive coverage
- Collision coverage
Liability coverage
Liability car insurance coverage is required in most states and D.C., but there are notable exceptions and recent changes. Florida does not require bodily injury liability for private passenger vehicles (it requires PIP and property damage liability), and New Hampshire has no general compulsory insurance though financial responsibility rules apply. Typical minimums are 25/50/25 or 30/60/25, with some states higher (e.g., Alaska and Maine 50/100/25). California increased its minimums to 30/60/15 effective Jan 1, 2025 (scheduled to 50/100/25 in 2027), and Virginia stepped up to 50/100/25 in 2025; New Jersey’s standard policy is scheduled to rise to 35/70/25 in 2026. Liability pays for injuries and property damage you cause to others, not repairs to your own vehicle. Sources: III state minimums, Florida DHSMV, California statute, Virginia DMV, NJ DOBI.
Comprehensive coverage
This type of coverage helps pay for damage to your vehicle from non-collision events such as weather (hail, wind, flood), vandalism, animal strikes, falling objects, fire, or theft. Glass claims have become costlier as ADAS cameras and sensors often need recalibration after windshield replacement; many insurers offer full-glass options in some states, and Florida law prohibits deductibles for windshield damage on private passenger vehicles. See NAIC’s overview, CCC Crash Course 2025, and Florida Stat. §627.7288. Theft risks also evolve: catalytic converter theft has declined from 2022 peaks, while some model-specific exposures (e.g., certain Hyundai/Kia) remained elevated into 2024 (NICB; IIHS/HLDI).
Collision coverage
Where liability coverage pays for the damage to someone else’s car, collision coverage pays for damage to your car. Generally, collision coverage pays to help repair or replace your vehicle after a crash with another vehicle or object, regardless of fault and subject to your deductible, and it’s often required by lenders and lessors (NAIC).
What isn’t covered by full coverage auto insurance?
- Items stolen from your car – If something is stolen out of your car, it is generally not covered under full coverage auto insurance. You may be able to add this to your coverage, or it may be covered under your renter’s or homeowner’s insurance. Personal belongings are typically handled by renters/homeowners policies (subject to deductibles), while damage to the vehicle from a break-in falls under comprehensive (NAIC).
- Normal wear and tear – Cars will gradually develop wear and tear as they age and you drive them. Wear and tear are not generally covered under full coverage auto insurance.
- Uninsured motorists – If the other driver has no (or too little) insurance, you could be left paying out of pocket. Generally, full coverage does not automatically include uninsured/underinsured motorist (UM/UIM) coverage, though many states require it to be offered and some mandate it. Nationally, an estimated 14.0% of motorists were uninsured in 2022, with state rates varying widely — a key reason many drivers add UM/UIM (Insurance Research Council; Triple‑I).
Do I need full coverage auto insurance?
If your car is financed or leased, your lienholder will typically require comprehensive and collision (often with specified deductibles). If you own your car outright, the decision to carry full coverage is up to you. While not required by law, it may be worthwhile to pay extra each month for the additional protection, especially if replacing or repairing your vehicle out of pocket would strain your finances.
For many people, their car is how they get to work, how they pick up their kids and how they get to the grocery store. If something happens to your car and you don’t have the money to fix it on your own, you may find yourself in a tough situation. This is where full coverage auto insurance may be able to help — repair costs and claim complexity have risen in recent years, and severe weather events (like hail and flood) continue to drive comprehensive claims (CCC Crash Course 2025; Triple‑I on severe convective storms).
If you have the money in savings to fix or replace your car if it is damaged, you may be able to get away with not having full coverage insurance. However, it still may be smart to have the coverage, even if you can afford to fix anything that happens — particularly if you live in a hail- or flood-prone area or drive a vehicle with complex ADAS/EV technology that can make repairs costlier (CCC Crash Course 2025).
How to make full coverage more affordable?
- Shop your options. Each insurer will charge a different amount for full coverage insurance. To find the best rate, take the time to shop around and see what each insurer is willing to do for you. Insurance is a competitive industry, so you may see some great rates to get your business. Quotes can vary widely, and many drivers are shopping and switching at elevated rates; consider telematics/usage-based programs that may lower your premium for safe driving (J.D. Power 2025).
- Only get the coverage that you need. The term full coverage refers to adding multiple different types of insurance to your policy. If there is a type of coverage that you don’t need, don’t get it. The insurance company will try to sell you on as much coverage as possible. Make sure you take the time to identify what types of coverage you need and what you don’t. Consider deductible choices and glass options where available; in Florida, insurers cannot apply a deductible to windshield damage on private passenger vehicles (full-glass options; Fla. Stat. §627.7288).
- Adjust your coverage limits. Within each type of coverage that makes up full coverage, there are different levels and limits of coverage. If you need to save a little on your premiums, look to tweak down your coverage levels. However, be aware that what may save you a few dollars today could cost you thousands in the future. Never pay for more than you need, but don’t skimp so hard on the coverage that you leave yourself vulnerable to financial issues in the case of an accident. Many states have recently increased minimum liability limits, but minimums are not the same as adequate protection (III).
