Is Full Coverage Worth It?
Full coverage makes sense for most newer vehicles. If your car is worth more than $5,000 and you couldn't pay to fix or replace it without major financial strain, full coverage protects you.
What Full Coverage Includes
Full coverage combines several types of protection:
| Coverage Type | What It Covers |
|---|---|
| Collision | Damage from crashes |
| Comprehensive | Theft, weather, fire, vandalism |
| Liability | Injuries and damage you cause |
| PIP | Your medical bills regardless of fault |
| Uninsured motorist | Hits from drivers without insurance |
Full Coverage vs. Minimum Coverage Costs
In most states, you'll pay:
- Minimum coverage: $100 to $150 per month
- Full coverage: $200 to $300 per month
- Difference: About $100 to $150 extra monthly
That extra $1,200 to $1,800 per year buys significant protection on a newer vehicle.
When Full Coverage Makes Sense
Choose full coverage if any of these apply:
- You have a car loan or lease (lenders require it)
- Your vehicle is worth more than $5,000
- You couldn't pay repair or replacement costs out-of-pocket
- You live in an area with high theft or weather risk
- You want protection against uninsured drivers
When You Can Skip Collision Coverage
If your car is older and fully paid off, do the math. If your vehicle's value is close to your deductible plus annual collision costs, you're overpaying. For example, $300 annual collision coverage on a $2,000 car with a $1,000 deductible doesn't make financial sense.
Dropping collision on an older car typically reduces premiums by 5 to 15 percent.
The Bottom Line
For newer vehicles worth real money, full coverage is the smart choice. The monthly cost is small compared to what you'd pay fixing or replacing your car. Review your coverage each year as your vehicle ages and depreciates.