Coverage preservation, unique ID assignment and extension of network lifetime are important features for wireless sensor networks. Grouping sensor nodes into clusters is an effective way to improve the network performance. By analyzing communication energy consumption of the clusters and the impact of node failures on coverage with different densities, we propose a DEECIC (Distributed Energy-Efficient Clustering with Improved Coverage) algorithm. DEECIC aims at clustering with the least number of cluster heads to cover the whole network and assigning a unique ID to each node based on local information. In addition, DEECIC periodically updates cluster heads according to the joint information of nodes’ residual energy and distribution. The algorithm requires neither time synchronization nor knowledge of a node’s geographic location. Simulation results show that the proposed algorithm can prolong the network lifetime and improve network coverage effectively.