What Does Full Coverage Car Insurance Cover?

Most drivers start with liability only because the law requires it. Full coverage goes further. It adds collision and comprehensive to your policy, which means your own car is covered after a crash, not just the other driver's. Below we cover what each part does, what it misses and whether the cost is worth it.

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Written by Mark Fitzpatrick

Updated: May 13, 2026

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Key Takeaways

Full coverage adds collision and comprehensive to your liability policy. Liability pays for damage you cause to others. Collision pays for damage to your own car after a crash. Comprehensive covers theft, hail, fire and animal damage.

Lenders require full coverage on financed or leased vehicles. Once your car's paid off, you decide whether the cost is worth it.

The 10% rule helps you decide when to drop coverage. If your annual collision and comprehensive premium exceeds 10% of your car's current value, switching to liability only may save you money.

What Does Full Coverage Car Insurance Cover?

Full coverage combines three separate coverages. Each one pays for a different type of loss.

1
Liability
Liability pays for injuries and property damage you cause to other people in an at-fault crash. Bodily injury liability pays the other driver's medical bills and lost wages. Property damage liability pays for their car and any other property you damage, including fences and storefronts. Liability is required in 49 states (not required in New Hampshire and only property damage required in Florida) and is the foundation of any policy. Adding full coverage doesn't change your liability limits. Those are set separately when you choose 25/50, 50/100 or 100/300.
2
Collision coverage
Collision pays for damage to your own car after a crash, regardless of who caused it. If you rear-end another car, get hit by an uninsured driver or hit a fixed object, collision pays for your repairs minus your deductible. Common deductible options are $250, $500 and $1,000. In our analysis, most drivers choose a $500 deductible as the right balance between monthly cost and out-of-pocket exposure after a claim.
3
Comprehensive coverage
Comprehensive pays for losses that aren't caused by a crash. That includes theft, hail damage, fire, flooding, fallen trees and animal damage. Collision and comprehensive are always sold together as the physical damage portion of a full coverage policy. Hail damage and theft are the two most common comprehensive claims we see in our data.

What Full Coverage Car Insurance Doesn’t Cover

Mechanical Breakdowns and Maintenance

Engine failure, worn brakes and transmission problems aren't covered by any car insurance policy. A vehicle service contract or extended warranty covers those, not your insurer.

Personal Belongings Inside the Vehicle

A stolen laptop, a damaged phone or cash left in your car isn't covered by auto insurance. Personal property inside your vehicle falls under your renters or homeowners policy instead.

Custom Parts Not Listed on Your Policy

Aftermarket wheels, upgraded audio and performance modifications are excluded unless you've added a custom parts endorsement. Standard policies cover factory-installed equipment only. Anything you added after purchase needs to be listed separately.

Rideshare and Commercial Use Gaps

If you drive for Uber or Lyft, your personal auto policy doesn't cover the period when the app is on and you're waiting for a ride request. A rideshare endorsement or separate rideshare policy fills that gap.

Amounts Above Actual Cash Value

If your car is totaled, your insurer pays what the car was worth at the time of the loss, not what you paid or what a replacement costs today. New car replacement coverage is an add-on that bridges this gap for newer vehicles.

How Full Coverage Claims Work

Here's what a real claim looks like. You're driving on a rainy highway and your car hydroplanes into a guardrail, then slides into another vehicle. With a $500 deductible, you pay the first $500 and your insurer pays the rest up to your car's actual cash value.

You caused $8,000 in damage to the other driver's car and $12,000 in their medical bills. Your liability coverage pays both. Collision pays for the $6,500 in repairs to your own car minus your $500 deductible, so your insurer pays $6,000 and you pay $500. Each coverage has its own deductible and pays independently.

Do You Need Full Coverage?

Adding comprehensive and collision is not required by any state, but 79% of our shoppers on MoneyGeek choose this coverage to protect their car.

If you're financing or leasing your car, full coverage isn't optional. Your lender requires it to protect their collateral. Dropping collision or comprehensive while you have an outstanding loan violates your financing agreement. Our guide on insuring a financed car covers what lenders require.

If you own your car, use the 10% rule. Divide your annual collision and comprehensive premium by your car's current value. If the result is 10% or higher, dropping those coverages may save you money. A car worth $7,500 with collision and comprehensive costing $820 per year hits 10.9%, above the threshold. Factor in your deductible too. With a $1,000 deductible on that $7,500 car, the most your insurer would pay after a total loss is $6,500. If you've got $6,500 in savings and can absorb that loss, dropping coverage makes sense. Without that cushion, keep the coverage even if the percentage is above 10%.

In our analysis, the 10% rule works well as a starting point but the deductible matters just as much. A high deductible on a low-value car leaves very little room for a real payout. Our when to drop full coverage guide breaks this down by vehicle value and deductible combination.

How Much Does Full Coverage Car Insurance Cost?

Adding collision and comprehensive to a liability-only policy costs the average driver $67 to $86 more per month. In our analysis, most drivers who have full coverage choose 100/300/100 limits with a $1,000 deductible, which runs $133 per month. Rates below are for a 40-year-old driver with a clean record and good credit based on MoneyGeek's analysis of Quadrant Information Services data. For more detailed cost information, see our guide to the cheapest full coverage policies.


State Minimum Liability Only	$62/mo	$747/yr
State Min. + Full Cov. ($1,000 Ded.)	$74/mo	$888/yr
50/100/50 Full Cov. ($500 Ded.)	$129/mo	$1,551/yr
100/300/100 Full Cov. ($1,000 Ded.)	$133/mo	$1,597/yr
300/500/300 Full Cov. ($1,500 Ded.)	$148/mo	$1,775/yr

The gap between state minimum liability only and 100/300/100 full coverage is $71 per month. For most drivers with a car worth more than $10,000, that's worth it. For drivers with older low-value vehicles, state minimum liability plus collision and comprehensive at $74 per month is often the right place to start. Use our car insurance calculator to get a rate based on your specific vehicle and ZIP code.

Bottom Line

Full coverage protects you on both sides of a crash. Liability covers damage you cause to others. Collision covers your own car. Comprehensive covers theft and weather damage. If you're financing a vehicle, full coverage is required. If you own it outright, the 10% rule gives you a clear test. Most drivers with a car worth more than $10,000 come out ahead carrying full coverage.

Full Coverage Car Insurance: FAQs

Does full coverage cover me if someone else is driving my car?

Yes. Your full coverage policy follows the car, not the driver. If someone you've given permission to drive your car causes a crash, your liability and collision coverage typically pay first.

Does full coverage cover a hit-and-run?

Yes. Collision coverage pays for damage to your car after a hit-and-run regardless of whether the other driver is found. Uninsured motorist coverage may also apply depending on your state.

Does full coverage pay out if my car is stolen and not recovered?

Yes. Comprehensive covers theft. Your insurer pays your car's actual cash value at the time of the theft minus your deductible, whether the car is recovered or not.

Our Methodology

MoneyGeek's rate data is sourced from Quadrant Information Services and reflects 2.4 million quotes across major U.S. insurers. Rates shown are for a 40-year-old driver with a clean record and good credit. Full coverage reflects 100/300/100 liability limits with a $1,000 deductible for comprehensive and collision. For a full explanation of how MoneyGeek collects and presents insurance data, see our auto insurance methodology.

About Mark Fitzpatrick

Mark Fitzpatrick, a Licensed Property and Casualty (P&C) Insurance Producer in Connecticut, is MoneyGeek's resident insurance expert. He has spent nearly a decade analyzing the market, first at LendingTree and now at MoneyGeek, where he has produced original research on hundreds of carriers and millions of rates across auto, home, renters, health and life insurance.

He covers economics and insurance at MoneyGeek, and his work has been featured in The Washington Post, The New York Times and NPR, among other outlets.

Like all MoneyGeek analysts, he draws on independent cost and consumer experience data, and no insurance company partnership influences his recommendations.

Fitzpatrick earned his degrees from Johns Hopkins University (M.A. Economics and International Relations) and Boston College (B.A.). He began his career in financial risk management at State Street. He's also a five-time “Jeopardy!” champion.

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Sources

Insurance Information Institute. "Background on: Compulsory Auto/Uninsured Motorists.." Accessed May 12, 2026.
Kelley Blue Book. "Vehicle Values." Accessed May 12, 2026.