Are you a driver or car owner wanting to get auto insurance, or have you heard about full coverage auto insurance? You are in the right place. Today I was at the auto shop when a client of mine displayed his frustration about how his insurance company is persuasive about getting full coverage auto insurance. He named the cost and I was wowed.
Well, with my years in the auto industry and dealing with clients who have found difficulty when getting auto insurance, I will break down everything you need to know about full coverage auto insurance, what it contains, and how much it costs.
Let’s dive in!
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What is Full Coverage Auto Insurance?
There is no particular type of insurance that is full coverage auto insurance. It’s just a way of referring to insurance plans that cover both your property damage and medical expenses after an automobile accident. Since vehicle insurers define “full coverage” differently, you won’t find “full coverage auto insurance” on a list of options provided by insurance firms.
You might get a variety of possibilities if you request full coverage auto insurance quotes from insurance firms. Auto insurance with full coverage isn’t really a sort of insurance. Although different insurers have varied definitions of complete coverage, they all usually agree that it should financially protect you against personal harm and vehicle damage.
It’s crucial to carefully examine each insurance quote because policies differ depending on the provider in order to comprehend the coverage offered. Let’s examine the protection that is normally provided by what some insurance providers refer to as “full coverage auto insurance,” as well as typical prices.
Full coverage auto insurance is a combination of insurance coverages that provides more extensive protection than just liability insurance. It includes liability coverage, comprehensive coverage, and collision coverage.
Liability coverage is usually mandated by law and covers the costs associated with bodily injury and property damage to others caused in an accident. Comprehensive coverage covers damage to your vehicle from events other than collisions, such as theft, vandalism, fire, or natural disasters.
Collision coverage covers damage to your vehicle from a collision with another vehicle or object, regardless of who is at fault. Lenders and leasing companies often require full coverage, especially when a vehicle is financed.
Factors to consider when choosing full coverage include cost, vehicle value, financial situation, state laws, and optional coverages like uninsured/underinsured motorist coverage, medical payments coverage, or rental reimbursement. Full coverage typically costs more than liability-only insurance due to its increased protection. Now let’s go deep exploring this information.
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What Does Full Coverage Auto Insurance Comprise?
Just as earlier said, full coverage Typically, “car insurance” refers to a combination of insurance that includes
Liability Insurance:
If you cause an accident, this coverage, which consists of bodily injury liability insurance and property damage liability insurance, may be able to help cover the cost of the other driver’s medical bills or car damage. Except for New Hampshire, every state mandates the purchase of liability insurance.
Find out the minimum liability insurance coverage you must carry as well as whether you must purchase uninsured and underinsured motorist coverage as part of your liability coverage by researching the insurance regulations in your state.
Collision Insurance:
This aids in subsidizing the expense of harm done to your car in an accident, whether it is with another vehicle or something else like a tree or guardrail. Although this insurance is typically optional, if you lease or finance an automobile, your lender might insist that you purchase it.
Comprehensive Coverage:
This helps in paying for car replacement or repairs following non-collision losses such as fire, as well as harm from the elements, animals, vandalism, or falling objects. Similar to collision insurance, comprehensive coverage is typically not required unless you lease or loan your vehicle.
You can also be required to acquire medical payments coverage or personal injury protection, generally known as PIP coverage, depending on the laws in your state. Full coverage auto insurance is seen by some insurance providers as encompassing all coverage options, which may include roadside assistance, towing protection, and rental car reimbursement.
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What Does Full Coverage Auto Insurance Cost?
Quote on Full Coverage Insurance – Full coverage insurance doesn’t mean full protection; it means a broader safety net. Knowing the difference is key to driving with confidence.
The National Association of Insurance Commissioners Auto Insurance Database Report from 2022 shows that the average premium for liability, comprehensive, and collision insurance in the United States in 2019 was $1,203.65 per vehicle.
The cost of your coverage will vary depending on the types of coverage you combine for your full coverage auto insurance. Your age, location, car, and credit history are among the variables that may affect how much your auto insurance will cost.
What is Good Coverage For Auto Insurance?
What “good” coverage is depends on your needs and financial position specifically. However, the National Association of Insurance Commissioners advises that you select a car insurance policy that meets at least the minimal standards for coverage imposed by your state.
If you don’t own your automobile entirely, you must fulfill the conditions of your auto loan or lease. Insurance for collision and comprehensive may be included. Give yourself and the other motorist enough insurance to cover property damage and medical expenses. All household members who drive must be covered.
So, how much auto insurance is sufficient? To properly safeguard your finances, you might think about purchasing more insurance than what your state and lender mandate. How much could you afford to pay for your medical expenses or automobile damage out of pocket? Paying more upfront for larger coverage limits can wind up saving you money afterward.
Similarly, it could be tempting to choose a large deductible for your comprehensive or collision coverage in order to reduce your insurance prices. Simply make sure the deductible is a sum you could afford to pay if your automobile were to be damaged. Could you, for instance, afford to pay a $1,000 deductible before your insurance begins to pay?
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Conclusion
Full coverage insurance offers a more comprehensive layer of protection by combining liability, collision, and comprehensive coverage. While it provides peace of mind against a wide range of risks, like accidents, theft, vandalism, and natural disasters, it’s important to understand that “full coverage” doesn’t mean everything is covered.
It still comes with limits, deductibles, and exclusions. Evaluating your vehicle’s value, driving habits, and financial situation is crucial in deciding whether full coverage is worth it. Ultimately, full coverage can be a smart investment for newer vehicles or when extra protection is needed beyond basic liability.
Depending on your needs, resources, and where you reside, your “full coverage auto insurance” may look different from someone else’s. However, be sure the policy you select complies with your state’s and the auto lender’s regulations, covers all household drivers (who don’t have their own auto insurance policies), and can financially protect you from medical expenditures and property damage costs for both you and the other driver.
For assistance in locating the best coverage and prices for you, compare auto insurance quotes from various providers. Even if you currently have coverage, it might be time to compare shops to find the best auto insurance prices for your coverage requirements.
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FAQs
What does full coverage insurance actually cover?
It typically includes liability, collision, and comprehensive coverage. That means it covers damage you cause to others, damage to your own car from accidents, and non-collision incidents like theft or natural disasters.
Is full coverage insurance required by law?
No, only liability insurance is required by law. However, lenders usually require full coverage if you’re financing or leasing your vehicle.
Does full coverage mean everything is covered?
No. Despite the name, full coverage has limitations and doesn’t cover things like regular maintenance, wear and tear, or using your car for business unless specifically added.
How much does full coverage insurance cost?
It varies based on your age, driving history, location, vehicle type, and deductible. On average, it can cost between $100 and $300 per month.
When should I drop full coverage insurance?
It may be wise to drop full coverage when your car’s value has depreciated enough that the premiums outweigh the potential payout in the event of a claim—usually around 8–10 years old.