A liability-only insurance policy can be appealing. A policy that only meets your state’s requirements is relatively cheap. But that low cost can come back to haunt you if you’re in an accident and your own vehicle is totaled. Without a full coverage policy — an insurance policy that combines liability, collision, and comprehensive insurance — you could be on the hook for repairing or replacing your car on your own.
Full coverage policies can provide critical protection and peace of mind, and if you finance or lease a car, it may be required. But, you don’t have to go broke to protect your car; we identified the cheapest full coverage insurance policies to help you find the right policy for you (and your budget).
How we evaluate products
When evaluating insurance companies, we looked at the average rates for full coverage policies, state availability, optional add-ons, and customer satisfaction ratings. We focused on companies that are broadly available with lower-than-average rates.
| Company name | Best/Excellent for | Average monthly full coverage cost | Average monthly liability-only cost |
| Travelers | New car owners | $190 | $95 |
| Nationwide | Pay-per-mile coverage | $181 | $90 |
| GEICO | Low rates | $142 | $111 |
| American Family | Discount programs | $149 | $74 |
| Progressive | Add-ons | $171 | $105 |
| USAA | Service members and veterans | $99 | $50 |
Travelers
- AM Best: A++ (Superior)
- J.D. Power claims satisfaction: 684/1,000 (study average 697)
- BBB: A+
- NAIC complaints: 3.96 (Private Passenger)
If you buy a new car, you’ll likely need full coverage insurance. Whether you bought the car with a loan and maintaining full coverage is part of the loan agreement or you simply want to protect your new vehicle, Travelers could be a good option.
Besides its lower-than-average rates for full coverage policies, Travelers offers useful options like guaranteed asset protection (GAP), accident forgiveness, and new car replacement. It also sells rideshare insurance in many states, allowing Uber, Lyft, or Instacart shoppers to get added protection.
However, the National Association of Insurance Commissioners received nearly four times the number of complaints about Travelers than is expected for an insurer of its size, and the company scored lower than the industry average in the 2024 J.D. Power Auto Claims Satisfaction Study.
- Offers GAP for financed and leased vehicles
- Sells rideshare insurance
- Multiple coverage add-ons available
- Higher-than-usual number of customer complaints
- Scored lower-than-average for customer satisfaction
- Some coverage options aren’t available nationwide
Learn more in our Travelers review
Nationwide
- AM Best: A (Stable)
- J.D. Power claims satisfaction: 728/1,000 (study average 697)
- BBB: A+
- NAIC complaints: 0.39 (Private Passenger)
Nationwide’s average rate for full coverage insurance is slightly below the national average. But, you could save even more by signing up for one of Nationwide’s usage-based insurance (UBI) or pay-per-mile policies — great ways to reduce the cost of full coverage insurance.
SmartRide, a program that bases your premiums on your vehicle use and driving habits, could allow you to slash your premiums by as much as 40%. For those who want a simpler option, SmartMiles is a pay-per-mile program that benefits low-mileage drivers.
However, Nationwide’s SmartMiles program isn’t available nationwide; the program isn’t available to residents of Alaska, Hawaii, Louisiana, New York, North Carolina, or Oklahoma.
And, despite its name, Nationwide doesn’t issue car insurance in all 50 states. It doesn’t issue any policies in Alaska, Hawaii, Louisiana, or Massachusetts.
- Offers pay-per-mile and UBI policies
- Sells GAP insurance
- Multiple discount programs
- Doesn’t issue policies nationwide
- UBI and pay-per-mile policies aren’t available everywhere
- Fewer agents than some companies
Learn more in our Nationwide review
GEICO
- AM Best: A++
- J.D. Power claims satisfaction: 692/1,000 (study average 697)
- BBB: A+
- NAIC complaints: 0.75 (Private Passenger)
While USAA typically has the cheapest full coverage insurance, it isn’t available to everyone; you must qualify for membership. GEICO is available to all drivers nationwide and has the next-lowest average rates.
Plus, GEICO has multiple add-ons you can use to enhance your coverage. For example, you can add mechanical breakdown coverage to protect your new car, rental reimbursement, or roadside assistance.
However, GEICO primarily sells and manages its policies online. If you’re a traditionalist (like me) who prefers the ability to contact a local agent with questions or issues with your policy, it can be difficult to find a GEICO agent nearby. And, it scored below the industry average in the J.D. Power Auto Claims Satisfaction study, signaling that customers may encounter frustrations if they have a claim.
- Cheaper-than-average rates
- Multiple add-ons available
- Provides coverage nationwide
- Limited agent network
- Lower-than-average rating in the J.D. Power study
- Doesn’t sell GAP insurance
Learn more in our GEICO review
American Family
- AM Best: A
- J.D. Power claims satisfaction ranking: 680/1,000 (study average 697)
- BBB: A+
- NAIC complaints: 0.26 (Private Passenger)
American Family’s full coverage policies are usually cheaper than the national average. And, the company has several valuable discount programs that could allow you to save even more. Besides standard discounts like multi-policy or multi-vehicle discounts, you can also take advantage of less common programs like a loyalty discount, low-mileage discount, or defensive driving discount.
The company also sells optional add-ons you can use to get extra protection, such as GAP insurance and accidental death and dismemberment coverage.
Unfortunately, American Family doesn’t sell its policies in all 50 states; it only issues policies in 19. Also, it has a smaller network of agents than other insurers.
- Cheaper-than-average rates
- Multiple discount programs
- Several optional add-ons available
- Limited availability
- Smaller agent network
- Below-average rating in the J.D. Power Auto Claims Study
Learn more in our American Family review
Progressive
- AM Best: A+
- J.D. Power claims satisfaction: 672/1,000 (study average of 697)
- BBB: A+
- NAIC complaints: 0.97 (Private Passenger)
I’m a car nerd, and my vehicles are loved and babied. As such, I find extra protections like Progressive’s custom parts and equipment coverage and vehicle protection plan particularly useful. These optional coverages can protect your vehicle against non-accident-related damages, dings, dents, and can even provide coverage for that amazing sound system you installed.
The downside? Progressive’s reputation for customer support is less than stellar. It scored near the bottom of the list in the J.D. Power Auto Claims Satisfaction Study. And, the price you pay for coverage may depend on how you purchase your policy; prices can vary if you buy a policy online versus through an agent.
- Multiple coverage add-ons
- Several discount programs
- Available nationwide
- Higher rates for young drivers
- Lower-than-average rating for customer satisfaction
- Pricing varies by purchase method
Learn more in our Progressive review
USAA
- AM Best: A++ (Superior)
- J.D. Power claims satisfaction: 726/1,000 (study average 697)
- BBB: A+
- NAIC complaints: 0.96 (Private passenger)
USAA’s average premium for full coverage insurance is about half the national average. If you qualify for coverage, you could reduce your premiums and save hundreds (or even thousands) by switching to USAA. And, USAA has a stellar reputation for customer support; although J.D. Power didn’t rank the company in its Auto Claims Satisfaction Study, it did evaluate USAA and awarded it a much better-than-average score.
The biggest downside is that USAA isn’t available to all drivers. To qualify for USAA membership and auto insurance, you must be a military service member, veteran, or the family member of a qualifying member.
- Significantly cheaper-than-average rates
- Excellent customer satisfaction score
- Extra benefits for service members
- Not available to all drivers
- Fewer discounts than some companies
Learn more in our USAA review
Who needs full coverage insurance?
Full coverage insurance may not be necessary or cost-effective for everyone. However, there are three scenarios where it’s a must.
You’re leasing a car
About 25% of new cars are leased. If you’re leasing a car, your lease agreement likely requires you to maintain full coverage on the vehicle. And, some lessors will require you to also have higher liability coverage limits than the state minimum.
You financed your vehicle
Similarly, if you bought a new car with an auto loan, the lender will likely require you to have full coverage to protect its investment.
You want to protect your vehicle
These days, even older, used vehicles are expensive. Heck, to replace my ancient minivan would cost over $15,000. If your car was stolen or totaled in an accident, could you afford to replace it out of pocket? If you don’t have enough cash in savings or don’t want to take out a new loan, it’s essential that you have full coverage so you can afford to repair or replace the car after an accident.
5 Ways to reduce full coverage premiums
As a worrywart, I’ll likely always have full coverage insurance. But I’m also frugal. If, like me, you want the peace of mind of a full coverage policy but don’t want to spend a fortune on insurance, use these tips to lower your premiums and save money.
- Raise your deductible: Your deductible is how much you have to pay out of your own pocket to repair or replace your vehicle before your insurer will pay out the claim. The higher the deductible, the more of the risk you take on, so increasing your deductible can decrease your premiums.
- Improve your credit: In many states, insurance companies can use your credit-based insurance score during the underwriting process. Improving your credit score can help you secure lower rates.
- Ask your agent about discounts: If you’re happy with your current insurer, contact your agent and ask about available discounts. You may qualify for a premium reduction if you complete a safe driving course, bundle your coverage, or stay accident free.
- Shop for coverage: I’ve been with the same insurer for years. But, I still get quotes from other companies at least once a year to make sure my premiums are competitive. Rates can vary by insurer — sometimes the difference can be in the hundreds — so it pays to shop around annually.
- Enroll in usage-based insurance (UBI): If you’re a safe driver and cover fewer miles than most, you may benefit from UBI policies. These policies base your premiums on your vehicle usage and mileage, so some drivers can significantly reduce their premiums by signing up.
FAQs
Can you switch car insurance at any time?
Yes, you can change car insurance companies at any time — even before your renewal date. However, some companies do charge cancellation fees if you end your policy early, so review your policy documents to find out if a fee applies.
Who is cheaper, GEICO or Progressive?
On average, GEICO has lower rates for full coverage policies than Progressive. Drivers pay about $142 for coverage through GEICO and $171 for insurance through Progressive.
What factors affect my full coverage insurance premiums?
For full coverage policies, your premiums are based on several factors. Your age, gender, location, driving record, the make and model of your vehicle, and (in some states) your credit score all affect your premiums.
Bottom line
Although a full coverage policy is more expensive than liability-only insurance, it can be well worth the cost. If you’re in an accident, you may find that a full coverage policy provides critical peace of mind and financial support so you can get back on the road.
Getting quotes from several insurers can help you find affordable coverage, and our list of the best car insurance companies can be a great starting point.
