Updated July 2026
What Is Full Coverage Car Insurance Insurance?
Full coverage car insurance combines three core protections: liability coverage for damage you cause to others, collision coverage for damage to your vehicle in crashes, and comprehensive coverage for non-collision damage like theft, vandalism, hail, or hitting an animal. Arizona law requires only liability coverage, but lenders and lessors require full coverage on financed or leased vehicles. The term 'full coverage' is industry shorthand, not a legal definition — what it includes varies by carrier and policy.
- You rear-end another vehicle at a stoplight, causing $8,000 in damage to their car and $5,000 to yours. Your liability coverage pays the $8,000 for the other driver's vehicle. Your collision coverage pays the $5,000 for your own car, minus your deductible. Without collision coverage, you pay the $5,000 out of pocket.
- A severe hailstorm causes $4,200 in dents and broken glass across your vehicle. Your comprehensive coverage pays the repair cost minus your deductible. Liability and collision coverage do not apply — weather damage requires comprehensive. If you carry only liability, you pay the full $4,200.
- Your car is stolen and never recovered. Your comprehensive coverage pays the actual cash value of the vehicle at the time of theft, minus your deductible. If your car was worth $18,000 and your deductible is $500, you receive $17,500. Without comprehensive coverage, you receive nothing and still owe any remaining loan balance.
Who Needs Full Coverage Car Insurance Insurance?
Full coverage is necessary if you finance or lease your vehicle — lenders require it to protect their collateral. It makes financial sense if your car is worth more than $5,000 and you cannot afford to replace it out of pocket after a total loss. Drivers in areas with high theft rates, frequent hailstorms, or heavy wildlife crossings benefit from comprehensive coverage even on older vehicles.
Add your annual collision and comprehensive premium to your deductible. If that total exceeds 20 percent of your car's current value, you are paying too much for coverage relative to the maximum payout. Check your car's value using Kelley Blue Book or NADA, then compare that figure to your annual cost. If the math does not justify it, drop to liability-only and bank the savings.
How Much Does Full Coverage Car Insurance Insurance Cost?
Full coverage in Arizona typically adds $90 to $180 per month compared to liability-only coverage, depending on vehicle value, deductibles, and driver profile. Annual cost ranges from $1,080 to $2,160 above the liability-only baseline.
- Vehicle value and replacement cost — higher-value cars cost more to insure for collision and comprehensive claims.
- Deductible selection — choosing a $1,000 deductible instead of $250 lowers monthly premiums by 20 to 30 percent.
- Zip code and theft rates — areas with higher vehicle theft or hail frequency increase comprehensive premiums.
- Driving record and claims history — at-fault accidents and prior collision claims raise rates significantly.
- Age and credit profile — younger drivers and those with lower credit scores pay more for full coverage than liability alone.