As the parent or guardian of a young driver, you know it's essential to have good car insurance to protect them. Whether you're paying for it or they're working hard to foot the bill, it's a new expense for your family. Fortunately, you can find cheap car insurance for young drivers without breaking the bank. Here are the six ways to lower the cost of a young driver on your policy and save on the cost of your teen’s car insurance:
Good student discounts
Students with higher grade point averages are usually more responsible and better drivers. If your young driver earns a B average or better at school, you may qualify for a good student discount on Nationwide teen car insurance.
Accident Forgiveness
Accidents happen to even the best young drivers. And if one does occur, insurance rates may rise as much as 30%. If you have Nationwide's Accident Forgiveness as part of your teen car insurance package, your rates will not increase following the first at-fault automobile accident.
Defensive driving class discount
A Nationwide discount is applied when your teen successfully completes an approved defensive driving class. This may help you get more affordable car insurance.
Install anti-theft devices
You may save when you install an anti-theft device in the vehicle. Your possible discount varies based on the type of device installed and the state in which the vehicle is garaged.
Choose the right car and insurance policy
Your new driver may have their heart set on the car of their dreams, but it’s important to remember that a luxury car is likely going to cost you more in insurance. Your best bet when buying a teen’s first car is to find one that is safe and reliable, as this is often less of a risk on the road or your wallet.
However, if your teen does have a luxury vehicle, it may be cheaper for them to be on their own car insurance policy, since chances are the insurance premiums will be significantly higher than other cars within your policy. It may also make more sense for them to purchase their own policy if either parent has any DUIs or multiple moving violations, as adding a teen driver can make the current policy cost even more.
In most cases though, it’s generally cheaper to add your teenager to your household car insurance policy. While doing so will increase your insurance rates, your policy’s coverage and deductibles will also apply to your teen. You may also be able to save money by signing up for a multi-car insurance policy.
A higher auto insurance deductible may lower the rate, but could mean more out-of-pocket expenses after an accident. If the vehicle is older or has very high mileage, liability coverage may be a better option than collision or comprehensive – though it will not cover damages to the car after an at-fault accident. Getting the right coverage that best fits your needs is important for saving money on your teen auto policy. Learn more about Nationwide’s auto insurance coverage types today.
Practice safe driving
One of the most reliable ways to keep insurance costs low is to avoid accidents. Learn about the risks teen drivers face and get tips for how to prevent them. Nationwide’s teen driving resource center offers practical information about teen decision making, distracted driving, the role of parents in teen driving and more.
Getting the right coverage that best fits your needs is important for saving money on your teen’s car insurance policy. Learn more about Nationwide’s auto insurance coverage types today.
Best Cheap Full Coverage Car Insurance
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Nationwide
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Why We Picked It
Nationwide offers cheap rates for varying levels of full coverage auto insurance. Its coverage offerings are plentiful, including a usage-based program and a pay-per-mile option for drivers who want to potentially lower their rates based on driving performance. The level of complaints against Nationwide car insurance is very low, making it a company to consider when shopping for auto insurance.
More: Nationwide Car Insurance Review
Pros & Cons
- Excellent full coverage car insurance rates, even when choosing higher liability limits.
- Has accident forgiveness, new car replacement and vanishing deductible as options to add to your policy.
- Offers a usage-based insurance program (SmartRide) for good drivers who want to lower their car insurance rates based on driving habits.
- Also offers a pay-per-mile insurance program (SmartMiles) for low-mileage drivers who want to save.
- Very low level of complaints made to state insurance departments about Nationwide’s auto insurance.
- High car insurance costs for drivers with a DUI.
- High auto insurance rates for drivers who cause an accident with injuries.
- Doesn’t offer rideshare insurance coverage.
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Travelers
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Why We Picked It
Travelers has decent rates overall for full coverage car insurance. The company has a very low level of complaints lodged against it. Travelers also has many coverage options that can give you better insurance protection, making it a good company to check out when comparison shopping.
More: Travelers Car Insurance Review
Pros & Cons
- Terrific price for loan/lease gap insurance at around $39 per year.
- Reasonable average auto rates for drivers with a DUI on their records compared to top competitors.
- Very low level of complaints made to state insurance departments about Travelers auto insurance.
- Has a usage-based insurance program (IntelliDrive), which may get safe drivers a good-sized discount.
- Offers accident forgiveness and also minor violation forgiveness.
- The cost of adding a teen driver to your policy is on the high side, compared to competitors.
- Offers rideshare insurance, but only in a couple of states.
- Doesn’t offer SR-22 filings for drivers in need.
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American Family
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Why We Picked It
American Family has average rates for full coverage. However, American Family has the lowest complaint rate of all the companies we analyzed, which speaks to customer satisfaction. It also offers optional coverages that may save you money, making it a company to consider when shopping for car insurance.
More: American Family Car Insurance Review
Pros & Cons
- Offers accident forgiveness which helps you avoid a rate increase if you crash—and lets you hold onto your good driver discount.
- Offers a usage-based program (KnowYourDrive) that allows you to try and lower your rates based on safe driving.
- Diminishing deductible available to add to your policy to reduce collision and comprehensive deductible over time if you’re accident-free.
- Offers rideshare insurance.
- Very low level of complaints made to state insurance departments about American Family’s auto insurance.
- Offers SR-22 filings.
- American Family’s full coverage rates are only so-so.
- Doesn’t offer new car replacement.
- American Family car insurance is only available to drivers in 19 states, so its availability is limited: Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, Nevada, North Dakota, Ohio, Oregon, South Dakota, Utah, Washington and Wisconsin.
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Geico
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Why We Picked It
Geico has very competitive full coverage car insurance rates, making it worth a look when shopping for cheap auto insurance. Its low level of car insurance complaints and a decent lineup of optional coverages are other reasons to consider Geico.
More: Geico Car Insurance Review
Pros & Cons
- Great car insurance rates for drivers who have a speeding ticket or were caught driving without insurance.
- Good auto insurance rates for drivers with poor credit.
- Also offers great rates for seniors and young drivers, who can be very expensive to insure.
- Low level of complaints made to state insurance departments about Geico’s auto insurance.
- Offers a usage-based insurance program (DriveEasy) for drivers who want to try their hand at reducing car insurance rates based on safe driving habits.
- Offers accident forgiveness.
- Doesn’t offer new car replacement or a vanishing deductible.
- Rates are only so-so for adding a teen driver to a policy.
- Geico’s rates for drivers with a DUI are high.
- You’ll have to look elsewhere if you need rideshare insurance.
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USAA
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USAA has pretty cheap rates for full coverage, even when higher liability limits are selected. It also has decent optional coverage options. However, USAA has a higher than average amount of complaints that should be taken into consideration. Note: You must be a military member, veteran or military family member to be eligible for USAA insurance.
More: USAA Car Insurance Review
Pros & Cons
- Cheapest full coverage rates of the companies we analyzed.
- Pretty reasonable rates for seniors and young drivers.
- Also has good rates for drivers with an accident, ticket or DUI on their records.
- USAA offers accident forgiveness and new car replacement.
- Offers rideshare insurance coverage.
- Has a usage-based insurance program (SafePilot) that drivers can use to possibly lower their car insurance costs if they show safe driving habits.
- Not all drivers are eligible for coverage. Only offers policies to veterans and active military members, plus their immediate families.
- Does not offer gap insurance.
- Average USAA rates for adding a teen to a policy are mediocre.
- Has a higher-than-average number of complaints made about its auto insurance to state insurance departments.
- Most complaints against USAA are related to surcharges and rates and then claim delays and unsatisfactory settlement offers.
Summary: Cheap Full Coverage Car Insurance Ratings
What Is Full Coverage Car Insurance?
Full coverage car insurance is not a specific type of policy but has come to mean a policy that includes liability insurance and comprehensive and collision coverage. A “full coverage car insurance” policy will also include any other coverage required in your state.
You can upgrade your full coverage auto insurance policy to higher liability limits and extra coverages. The amount of coverage you buy will depend, in part, on how much car insurance you need.
What Does Full Coverage Car Insurance Cover?
Full coverage car insurance normally includes liability insurance, collision and comprehensive insurance, with each type of coverage offering a different form of protection. Here are details of each coverage.
Liability insurance
Liability car insurance pays for injuries and property damage you accidentally cause to others with your vehicle. For example, if you accidentally crash into another car, injure the driver and damage their car, your liability insurance pays for their medical bills and car repair costs, up to your policy’s limits. Liability insurance also covers court judgments or settlements and legal defense costs if you’re sued over a car accident.
Liability car insurance is displayed as three numbers, such as 50/100/50. These numbers stand for the maximum payout limit for each part of your liability coverage.
50/100/50 translates to:
- 50 refers to $50,000 of bodily injury liability per person injured in an accident.
- 100 refers to $100,000 of bodily injury liability in total for one auto accident.
- 50 refers to $50,000 of property damage liability per accident.
Your state will have a minimum amount of liability coverage you must carry. Most state minimums are insufficient, especially if you cause a severe or multi-car accident. It’s smart to buy higher limits, such as 100/300/100, to protect you and the assets that could be taken from you in a lawsuit.
Liability car insurance only covers those you cause harm to in an auto accident. Liability insurance doesn’t cover you, your passengers or your vehicle.
Collision and comprehensive coverage
Collision and comprehensive coverage are separate coverages but are commonly sold together.
Collision coverage. Pays to repair or replace your car if it collides with another vehicle or object, such as a fence or pole, regardless of fault. Collision insurance also pays for the upset of your vehicle, such as accidentally rolling down an embankment.
Comprehensive coverage. Pays to repair or replace your car if it’s stolen or damaged due to fire, vandalism, flooding, hail, striking an animal, severe weather or falling objects.
For example, say your car slides on ice and hits a guardrail. Collision coverage would pay for the damage to your car (and your liability coverage would pay for the damaged guardrail).
If your car is pelted with hail and is riddled with dings, your comprehensive coverage would pay for repairs.
Both collision and comprehensive coverage have a deductible, such as $500 or $1,000. The deductible is the amount deducted from your claim check. For instance, if accident repairs cost $1,500 and you have a $500 deductible, your insurance claim payout will be $1,000.
Collision and comprehensive pay you the depreciated value of your vehicle if your car is a total loss or is stolen. The maximum claim payout for collision and comprehensive insurance is the value of your car right before the accident or damage, minus your deductible.
Collision and comprehensive coverage aren’t required by any state, but if your car has a lease or loan on it, your lender will likely mandate you carry both coverages.
Also see: Does Car Insurance Cover Snow & Ice Damage?
What other coverage may be included in a full coverage policy?
Some states mandate other coverage be part of a car insurance policy. Common state-required coverage includes uninsured motorist coverage, personal injury protection coverage and medical payments coverage.
Uninsured motorist coverage
Uninsured motorist coverage pays for medical expenses if you or your passengers are injured in an accident and the at-fault driver is uninsured. Depending on where you live and the policy you choose, it may also cover damage to your car when the at-fault driver is uninsured.
Uninsured motorist coverage is sold in limits that match your liability coverage. Uninsured motorist coverage is required in some states and optional in others.
Personal injury protection and medical payments
Personal injury protection coverage (PIP) covers the medical expenses of you and your passengers, no matter who caused the auto accident. PIP insurance also pays for lost wages and replacement services, such as child care, if you’re unable to perform an essential task due to your injuries. Some states require PIP. In others, it’s optional or not offered.
Medical payments coverage (MedPay) helps pay medical bills associated with an auto accident for you and your passengers, regardless of fault. It’s required in a few states but optional in most, if offered at all.
To build out your full coverage car insurance policy even more, there are other types of car insurance coverages you can add on. Optional coverages that give you extra protection include rental reimbursement, roadside assistance and gap insurance.
What Does Full Coverage Not Cover?
Full coverage car insurance may sound like it covers all situations, but it does not. A full coverage policy generally will not cover:
- Damage you intentionally do
- Driving your car for business (you usually need commercial car insurance)
- Racing or speed competitions
- Mechanical breakdowns or repairs
- Personal items stolen from your car (look to your home insurance or renters insurance for coverage)
- Items not permanently installed in your car
- Wear and tear to the vehicle
What’s covered by a full coverage policy will also depend on what types of coverage are required in your state.
For instance, if your state requires drivers to carry uninsured motorist coverage, it will be included in your policy no matter what.
Cheapest Full Coverage Car Insurance
Forbes Advisor’s analysis of 15 car insurance companies found USAA has the cheapest full coverage car insurance rate with a rate of $1,087 per year. Nationwide is second cheapest, with an annual average price of $1,137 and Geico places third-cheapest with a rate of $1,147.
USAA is $50 a year cheaper than Nationwide for full coverage insurance; however, USAA has limited eligibility. To obtain car insurance with USAA, you must be a military member, veteran or a family member of either. If you don’t qualify with USAA for cheap full coverage car insurance, Nationwide and Geico may be the best car insurance companies to start reviewing when you’re comparison shopping.
See the cheapest full coverage car insurance:
- By company
- By state
- By company in your state
- For young drivers
- For seniors
- After an accident or ticket
Cheapest full coverage car insurance by company
The national average rates for full coverage from top car insurance companies show a large range in how much you might pay. For example, there’s a difference of over 200% between USAA, the cheapest 250company for full coverage insurance, and Safe Auto, the most expensive. That comes out to a difference of nearly $2,250, showing how important it is to shop around for cheap full coverage insurance.
Cheapest full coverage car insurance by state
You can increase your full coverage policy’s liability limits to boost financial protection. Liability car insurance pays for accidental injuries and damage you cause others in a car crash. For example, a policy with 50/100/50 liability limits pays up to $50,000 per person and $100,000 per accident for bodily injuries others suffered and $50,000 for property damage to others.
With the ever-rising cost of medical bills and car repairs, having more liability car insurance coverage is a wise move if you can afford it. Don’t rule out raising your liability limits without checking out prices. It likely costs less than you think.
In Ohio, it’s merely $51 more annually to boost liability coverage limits from 50/100/50 to 100/300/100. It’s another $60 more to move up to coverage of 250/500/100. So for $111 extra a year, you can get five times the amount of bodily injury liability coverage and double your property damage coverage.
Costs will vary depending on where you live. For example, it costs $220 more annually to raise liability limits from 50/100/50 to 250/500/100 in California.
Which car insurance company has the cheapest full coverage car insurance in your state?
Our analysis of full coverage car insurance costs by state finds American National in Idaho has the lowest annual cost of $458. That is nearly $1,330 cheaper than the most expensive full coverage insurance cost in Idaho of $1,787 with Allstate. This is a good reminder to explore lesser-known auto insurance companies when you’re comparing car insurance quotes.
Cheapest full coverage for young drivers
Our analysis of 10 large auto insurance companies found USAA is the cheapest overall for full coverage for young drivers between age 16 and 19. USAA coverage is only available to members of the military community, making Erie the cheapest option for drivers who aren’t eligible for USAA membership. Geico is the third cheapest company for full coverage car insurance for young adults.
If the young driver needs to be on their own policy, it’s best to compare car insurance quotes with multiple car companies so you can find the cheapest car insurance for teens. However, it’s normally cheaper to add a young driver to their parent’s car insurance policy if the child is living at home and driving a household vehicle. Either way, shopping around can help you find the best rates.
Cheapest full coverage car insurance for seniors
Forbes Advisor’s analysis of 13 large insurance companies found USAA is the cheapest overall for senior drivers. Auto-Owners is the cheapest full coverage car insurance for senior drivers who aren’t eligible for a policy with USAA.
To find the best car insurance for seniors, compare prices with multiple companies since rates vary based on your personal rating factors, such as your driving record and location.
Cheapest full coverage after an accident or ticket
Our analysis of 10 top car insurance companies found that USAA offers the cheapest full coverage auto insurance after an accident with only property damage or for drivers who cause an accident involving injuries. USAA also have the cheapest full coverage rates if you have a speeding ticket on your driving record.
If you’re not eligible for USAA coverage—due to not being a military member or family member of one—State Farm has the cheapest full coverage after an accident, while Geico is cheapest if you have a speeding ticket.
Is Full Coverage Right for You?
If your car is financed or leased, lenders normally require you carry full coverage. Lenders require insurance in case the vehicle if it’s damaged or totaled before the loan is paid off.
Liability insurance doesn’t pay to get your car repaired or replaced if damaged by an auto accident, theft, fire or weather, but comprehensive and collision coverages that are included in a full coverage policy do.
If your car is newer, you likely want full coverage auto insurance. If your vehicle is paid off and not worth much, collision and comprehensive insurance might not be worth it for you. When deciding, ask yourself if you can pay for repairs if your car is in an accident or to replace your car if it’s stolen or totaled. Your answer should help you determine if full coverage is right for you.
Related: When to drop collision and comprehensive insurance
Factors That Affect the Cost of Full Coverage Car Insurance
Car insurance companies vary on how they calculate rates, but they typically look at the same main car insurance rating factors:
- Where you live. Heavier populated areas tend to have more accidents, so drivers in urban areas have higher rates. Areas with more severe weather, higher crime or higher repair costs will also have higher rates.
- Your driving record. If you have a clean driving record, you’ll pay less than a driver with a ticket or accident on their record.
- Your age. Young drivers and senior drivers typically pay more for full coverage. Teen drivers pay higher rates because they are inexperienced, and senior drivers’ rates go up as their driving skills and reaction times decline.
- Your gender (in states that allow it, most do). Young men are considered riskier drivers than young women so pay higher rates. As drivers age, rates become nearly equal until the senior years. Rates for senior women may again become cheaper than men, who are seen as being riskier behind the wheel in their golden years.
- Years of driving experience. Less experienced drivers pose a higher risk of being in an accident so pay more.
- Car insurance history. If you’ve made car insurance claims in the past, you may pay more. You also can see higher rates if you’ve had gaps in coverage.
- Credit history. If you have a low credit-based insurance score, it can result in higher rates. The use of a credit-based insurance score is banned in California, Hawaii, Massachusetts and Michigan for car insurance cost purposes.
- Vehicle model. Past claims for your make and model vehicle, repair costs and the value of your vehicle affect how much you pay for full coverage.
- Deductible choices. You can save by raising your car insurance deductibles for comprehensive and collision coverages. Depending on where you live, you may also have a deductible for other types of coverage, like uninsured property damage coverage or personal injury protection.
How to Find Cheap Full Coverage Car Insurance
Determine coverage limits
To get the absolute cheapest full coverage car insurance, you can choose low liability limits. The lowest liability limits available are your state minimum requirements. However, it typically doesn’t cost much more to raise your limits to get much better protection. For instance, our analysis finds in Indiana it’s only $34 per year to raise liability coverage limits from 50/100/50 to 100/300/100. Look for limits that give you the most protection but still fit your budget.
Raise your deductibles
Collision and comprehensive coverage each come with a deductible, an amount deducted from your claim payout. Car insurance deductibles typically range from $250 to $2,500. You can lower full coverage car insurance costs by choosing a higher deductible.
Ask for discounts
You can get car insurance discounts by going paperless, paying your policy in full and bundling your auto and homeowners insurance, but those are just a few of the price breaks commonly offered. It never hurts to ask if you’re eligible for more so you can get even cheaper full coverage insurance.
Shop around
The most effective way to get cheap full coverage insurance is to compare car insurance quotes from multiple auto insurance companies. Shop for the same coverages, limits and deductibles so you’re evaluating comparable policies and can determine which gives you the cheapest full coverage car insurance price. You can save hundreds or more by simply shopping around.
Methodology
To identify the cheapest full coverage auto insurance companies, we analyzed car insurance rates, coverage options offered and complaints against each company.
Auto insurance rates (50% of score): We used data from Quadrant Information Services, a provider of insurance data and analytics, to find average costs from each company.
Car insurance coverage options (25% of score): Here we gave points to companies that offer accident forgiveness, new car replacement, vanishing deductibles, usage-based or pay-per-mile insurance, and SR-22s.
Complaints (25% of score): We used auto insurance complaint data from the National Association of Insurance Commissioners.
Cheapest Full Coverage Car Insurance FAQ
What is the cheapest full coverage car insurance?
Our analysis finds the national average for full coverage insurance costs $1,857 annually (for 50/100/50 liability limits).
The cheapest full coverage car insurance is a policy with low liability insurance limits plus comprehensive and collision coverage with higher deductibles.
You’ll need to shop around to find the cheapest full coverage insurance policy, as personal factors affect your rates. Comparison shop with at least three companies to determine who has the best price.
Who has the cheapest full coverage car insurance?
Our analysis of national average rates finds USAA has the cheapest full coverage car insurance cost of $1,087, followed by Nationwide ($1,137) and Geico ($1,147). You must be a military member, veteran or military family member to qualify for USAA insurance.
What company will give you the cheapest full coverage insurance depends on your personal rating factors. These factors include items such as your driving record, claims history, and location. Comparing car insurance quotes from multiple companies will help you find the car insurance company that offers the best prices.
Is full coverage car insurance required?
Full coverage car insurance is not required by states, like liability insurance is. If your car is financed or leased, your lender will normally mandate you carry full coverage auto insurance.
Even if you own your vehicle outright, it’s wise to carry full coverage on newer vehicles. Collision and comprehensive coverage pay out for problems such as, theft, fire, vandalism, severe weather damage, falling objects, striking an animal and collisions with objects, such as poles.
Does full coverage auto insurance replace your car?
Full coverage car insurance includes collision and comprehensive coverages that pay the value of your vehicle if it is stolen or a total loss from a problem like an auto accident, striking an animal or severe weather. You can take the claim settlement for your vehicle to replace it, but your payout will be for the amount your vehicle was worth the moment before the accident, not what you paid for it originally.
Many car insurance companies also offer new car replacement coverage, which you can add to a full coverage policy. New car replacement coverage gives you money for a brand new car of the same make and model as your car that was totaled, not the depreciated amount that is typically paid out for a total loss claim.
How much more is full coverage compared to liability car insurance?
Forbes Advisor’s analysis found full coverage costs 200% more than a liability-only car insurance policy, on average. The average cost for full coverage (that included 50/100/50 of liability coverage) is $1,853 a year, and the average cost of a bare-bones liability policy is $618 a year.
Car insurance policies that only have state-minimum car insurance requirements are cheaper but woefully short on coverage. For instance, California only requires $15,000 per person and $30,000 per accident for bodily injury liability and $5,000 for property damage per accident. You could cause an accident that easily exceeds those limits—leaving you personally responsible for the remainder. Also, with liability-only coverage, you have zero coverage for damage to your own car.
If you’re not sure you can afford full coverage, compare car insurance quotes to find out. You may be pleasantly surprised that you can add on collision and comprehensive coverage—to make a full coverage policy—for a price within your budget.
Is comprehensive insurance the same as full coverage?
Comprehensive coverage is not the same as full coverage but is a component of a full coverage car insurance policy.
“Full coverage” refers to a car insurance policy that has liability coverage (and any other state-required car insurance coverages) plus collision and comprehensive coverage. It’s “full coverage” because the liability portion covers others when you cause an accident, and the comprehensive and collision coverage applies to your car.
Comprehensive and collision coverage pay to repair your car or pay the value of your car if it’s beyond repair after an incident. Comprehensive insurance covers your vehicle for:
• Theft
• Fire
• Vandalism
• Damage from striking an animal
• Falling objects
• Floods or severe weather such as hail or a tornado
Collision coverage is usually paired with comprehensive coverage. Collision coverage protects your car if it hits an object, such as a pole.
How long should you keep full coverage on a car?
You should keep full coverage on your car until it’s paid off, as your lender will require it. Once you’ve paid off your car, if it’s still relatively new and worth a decent amount, the benefits of comprehensive and collision coverage usually make full coverage worth keeping.
Once your car is older and worth less, you should consider when to drop collision and comprehensive coverage. Before you decide, ask yourself if you’re ready to pay out-of-pocket for damages to your vehicle full coverage would typically pay for or if you would even keep the car if it were damaged.
Does it make sense to have full coverage on a car that’s paid off?
The value of full coverage on a car that’s paid off depends on the age and value of the vehicle, your ability to pay for the cost of repairs or a vehicle replacement, and the amount of protection you want.
If you want insurance protection that pays for damage to your car from an auto accident, regardless of fault—and for situations such as theft, fire, vandalism and damage from natural disasters—it makes sense to have full coverage car insurance even if your car is paid off.
If you want to continue full coverage car insurance but think you’re paying too much, compare car insurance rates with multiple companies to see if you can find more affordable rates.
Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.
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