When it comes to car insurance, one of the most important decisions drivers face is whether to buy full coverage insurance or stick with their state minimum car insurance requirements.
With rising costs of vehicles and medical bills, finding cheap car insurance that still provides adequate protection can be challenging. Whether you’re searching for insurance quotes online, looking for the cheapest vehicle insurance, or comparing companies like State Farm, AARP, Lemonade, Jerry, or Zebra car insurance, understanding the difference between coverage levels can save you thousands of dollars.
This guide will walk you through:
- What state minimum auto insurance covers (and what it doesn’t).
- What’s included in full coverage car insurance.
- How much each option costs.
- Who should consider which policy.
- Tips to find the best auto insurance at the lowest rate.
What Is State Minimum Car Insurance?
Every U.S. state sets minimum requirements for auto liability insurance coverage. This is often called state minimum car insurance.
What It Covers
- Bodily Injury Liability (BI): Pays medical bills for injuries you cause to others.
- Property Damage Liability (PD): Covers damage to another person’s vehicle or property.
What It Doesn’t Cover
- Repairs to your own car after an accident.
- Your medical expenses if you’re injured.
- Theft, vandalism, fire, or natural disasters.
👉 Example: If your state requires 25/50/25 coverage, that means:
- $25,000 per person for bodily injury
- $50,000 per accident for bodily injury
- $25,000 for property damage
What Is Full Coverage Car Insurance?
Full coverage insurance is not a specific policy but a combination of protections that go beyond the state minimum.
What It Includes
- Liability Coverage (same as state minimum).
- Collision Coverage: Pays for your car repairs after an accident, regardless of fault.
- Comprehensive Coverage: Covers non-accident damage like theft, fire, hail, or flooding.
- Uninsured/Underinsured Motorist (UM/UIM): Protects you if the at-fault driver has no or insufficient insurance.
Some insurers also include:
- Medical Payments (MedPay) or Personal Injury Protection (PIP).
- Roadside Assistance or Rental Reimbursement.
Cost Comparison: Full Coverage vs. State Minimum
| Insurance Type | Average Annual Premium (U.S.) | Best For | Example Providers |
|---|---|---|---|
| State Minimum Car Insurance | $600 – $900 | New drivers, low-value cars, budget-conscious drivers | State Farm, Dairyland, Esurance, Zebra Insurance Quotes |
| Full Coverage Car Insurance | $1,500 – $2,500 | Drivers with newer cars, high-risk areas, or loans/leases | State Farm, Geico, Lemonade Auto Insurance, American Family Insurance |
💡 Tip: If you’re financing or leasing your car, lenders typically require full coverage insurance.
Pros and Cons of State Minimum Insurance
Pros:
- Cheapest car insurance option.
- Meets legal requirements.
- Good choice for older, low-value vehicles.
- Easier to find cheap monthly car insurance.
Cons:
- Leaves you financially exposed after an accident.
- No coverage for theft, fire, or natural disasters.
- Medical bills could exceed policy limits.
- May not be enough for high risk insurance drivers.
Pros and Cons of Full Coverage Insurance
Pros:
- Covers your vehicle repairs and personal medical expenses.
- Protects against theft, vandalism, and natural disasters.
- Includes UM/UIM protection.
- Required for financed/leased cars.
- Peace of mind for new driver insurance or high-value vehicles like Teslas.
Cons:
- More expensive (2–3x cost of state minimum).
- May not make sense for older, inexpensive vehicles.
- Higher deductibles can apply.
When Should You Choose State Minimum Insurance?
- You own an older car worth less than $4,000.
- You need inexpensive auto insurance and want to meet legal requirements only.
- You’re a low-income driver searching for cheap affordable car insurance.
- You rarely drive and want car insurance by the mile or one month car insurance.
When Should You Choose Full Coverage Insurance?
- You have a new or leased car.
- You live in an area with high accident, theft, or weather risks.
- You’re a new driver or have a high-risk insurance profile.
- You want the best car insurance for military families or frequent travelers.
- You’re seeking peace of mind knowing your car is protected in almost any situation.
How to Find Cheap Full Coverage and State Minimum Car Insurance
1. Compare Insurance Quotes Online
- Use tools like Zebra car insurance, Jerry car insurance, or car insurance finder to compare rates.
- Get a general insurance quote or state farm auto quote instantly.
- Don’t forget small car insurance companies – they often provide the most affordable car insurance.
2. Ask About Discounts
- Multi-policy discounts (bundle auto + home).
- Good driver discounts.
- Student or senior discounts (AARP car insurance quote, AARP auto insurance quote).
- Military and low-income driver discounts.
3. Consider Local and Regional Insurers
Sometimes local car insurance companies or auto insurance brokers near me offer better deals than national brands.
4. Adjust Deductibles and Coverage
Raising deductibles can lower your premium. You can also add/remove extras like roadside assistance depending on your needs.
FAQ: Full Coverage vs. State Minimum Car Insurance
Q1. What’s the difference between liability and full coverage insurance?
- Liability (state minimum) covers others if you cause an accident. Full coverage also protects your car and medical bills.
Q2. Is full coverage worth it on an old car?
- Usually no. If the repair cost exceeds the car’s value, stick with state minimum or liability-only insurance.
Q3. Can I get one month or temporary car insurance?
- Yes, some companies offer 1 month car insurance or month-to-month car insurance for short-term needs.
Q4. Which company has the cheapest car insurance?
- It depends on your state, driving record, and vehicle. Compare insurance quotes from State Farm, Erie Insurance, American Family, Lemonade, and Clearcover auto insurance.
Q5. How do I insure my car instantly online?
- Companies like Esurance auto insurance, Jerry auto insurance, and buy auto insurance online instantly platforms allow immediate coverage.
Conclusion: Which Policy Is Right for You?
Choosing between state minimum car insurance and full coverage insurance depends on your vehicle’s value, budget, and personal risk tolerance.
- If you drive an older car and need cheap car insurance, state minimum might be enough.
- If you want peace of mind or drive a newer vehicle, full coverage auto insurance is the smarter investment.
👉 Ready to make the best decision? Compare online insurance quotes today from State Farm, Lemonade, AARP, Jerry, or Zebra and find the best auto insurance for your situation.