What Each Type Covers

🛡️ Minimum Coverage (Liability Only)

  • Bodily injury to others you injure
  • Property damage to others' vehicles
  • Legal defense if you're sued

Does NOT cover: your own vehicle, your medical bills, uninsured driver damage

🚗 Full Coverage (Liability + Collision + Comp)

  • Everything in minimum coverage
  • Your vehicle in any accident (collision)
  • Theft, hail, flood, fire (comprehensive)
  • Typically includes glass coverage

Required if you have a car loan or lease

Cost Comparison: Full vs Minimum Coverage (2026)

Coverage TypeNational Average Annual CostMonthly
State minimum only$600 – $800$50 – $67
Liability + UM/UIM$800 – $1,100$67 – $92
Full coverage (standard)$1,600 – $2,000$133 – $167
Full coverage (high deductible $1,000)$1,200 – $1,600$100 – $133

The 10% rule for dropping full coverage: If your annual collision + comprehensive premium exceeds 10% of your car's value, consider dropping. A $3,000 car paying $600/year in collision = 20% — almost certainly not worth it.

When You're Required to Have Full Coverage

If you financed your car, your lender requires collision and comprehensive to protect their collateral. This requirement typically stays until your loan is paid off. Leased vehicles also require full coverage — usually with lower deductibles ($500 or less) specified in the lease agreement.

When Minimum Coverage Is Enough

Even with minimum coverage, strongly consider adding Uninsured/Underinsured Motorist (UM/UIM) coverage. It's inexpensive ($50–$150/year) and protects you when the at-fault driver has no insurance — which is 1 in 8 drivers nationally.

Coverage Levels Within Full Coverage

CoverageWhat It CoversRecommended Limits
Bodily injury liabilityMedical costs for others you injure$100K per person / $300K per accident
Property damage liabilityOthers' vehicle/property damage$100K minimum
CollisionYour vehicle in any accident$500–$1,000 deductible
ComprehensiveTheft, hail, flood, fire, animals$250–$500 deductible
UM/UIMUninsured driver hits youMatch your liability limits
Medical payments / PIPYour own medical costs$5,000–$25,000

Calculate Your Insurance Cost

Enter your driver profile and coverage preferences for a free 2026 estimate.

Use the Free Calculator →

Frequently Asked Questions

What is the difference between full coverage and minimum coverage?
Minimum coverage is liability only — it covers damage you cause to others. Full coverage adds collision (your vehicle in any accident) and comprehensive (theft, hail, fire, flood). Full coverage costs 2–3x more but protects your own car.
Is full coverage required?
Full coverage is required if you have a car loan or lease. Lenders require it to protect their collateral. If you own your car outright, it's optional — but often worth it on newer or higher-value vehicles.
When should I drop full coverage?
Consider dropping collision and comprehensive when your car is worth less than $4,000–$5,000, the annual premium exceeds 10% of the car's value, and you can afford to replace the car out of pocket. Run the numbers before deciding.
What is the minimum car insurance by law?
Every state except New Hampshire requires minimum liability coverage. Requirements vary — most states require at least $25,000/$50,000 bodily injury and $25,000 property damage. Some states add PIP requirements. State minimums are typically insufficient for serious accidents — always consider higher limits.