Full Coverage Auto Insurance Explained
There are many different types of auto insurance you can choose from once you decide to purchase your car. Depending on your needs and how much you actually plan on using your vehicle it is important to choose the one that fits best. One of those many insurance offers you’ve going to get will surely include the one that is our today’s topic- full coverage car insurance.
But what actually is full coverage auto insurance and do you need it?
Full coverage auto insurance is a type that covers everything from towing and repair costs to damage done to the vehicle itself. It also has liability coverage, which pays for your legal defense if you’re involved in an accident and sued by someone else.
This insurance is the most robust form of auto insurance available, and it covers your vehicle in a variety of ways. It also offers both protection against theft and vandalism as well as personal injury protection that can cover medical expenses for you or other passengers in case anyone is injured during an accident.
The cost of full coverage auto insurance varies by provider but is more expensive than a liability because it covers much more than just property damage and injuries. But, exactly how much can you anticipate paying for full coverage auto insurance?
Well, you can generally expect it to be around $2,000 per year. However, if you have a clean driving record (you haven’t had any accidents or tickets) then this number can drop significantly.
Let’s now take a more in-depth look at this insurance policy so you can decide whether it is the right fit for you or you should just skip it.
What Is Full Coverage Auto Insurance?
Full coverage insurance provides a comprehensive level of protection for your vehicle in case of an accident. This covers not only damages but also medical bills for injuries done to you or your passengers, and the cost associated with the legal defense if you’re to be found liable for causing an accident.
This auto insurance can be purchased from different companies in various amounts based on how much risk you want to cover yourself against. The two types of full coverage policies are “named perils” policies and “open perils” policies, but it’s important to note that all full coverage policies offer both types if they’re needed.
If you are currently on a hunt for a good deal, don’t forget to browse around as you can even land a low-cost full coverage auto insurance, but that’s of course if you didn’t have many accidents in the past.
What Is Covered by Full Coverage Auto Insurance?
By now we discussed just some bits provided, but what does full coverage insurance cover on auto completely? Well, actually what is covered by your plan can vary quite a bit depending on the agreement you chose, but in general full coverage car insurance includes a number of things:
- Liability Coverage – This is the basic form of insurance you need when driving a vehicle. It covers injuries or property damage you cause to another driver, pedestrian, or person on private property. If you were to choose just liability insurance it would only cover this so there are many things that would be left not covered, but it would be cheaper.
- Uninsured Motorist Protection – This protects you against injury from an uninsured driver or damage caused by an uninsured driver.
- Medical Payments Coverage – If you are injured in an accident that isn’t your fault and not covered by your own health insurance plan, this type of coverage will pay for medical bills up to a certain limit per person per accident.
- Collision Coverage – Covers damages caused by collisions with other vehicles or objects such as trees and buildings. In addition to paying for collision repairs done at authorized repair facilities, it also covers rental cars. This is while yours is being repaired if there isn’t any replacement vehicle available immediately after the incident occurred (usually within 24 hours)
These are the things that every full-coverage auto insurance is going to cover, but as we mentioned already, depending on your individual deal, you may have additional benefits associated with your plan.
How Much Does Full Coverage Auto Insurance Cost?
Looking at all that this insurance provides, it does not surprise the fact that it costs more than other types available. However, that doesn’t mean that you can’t find affordable full coverage auto insurance.
Full coverage will likely cost more than just liability alone because you’re paying for additional benefits such as rental reimbursement and guaranteed replacement value (GRV). If those are important to you then paying slightly more for full coverage could save thousands if something happens. In case there was ever theft or even an accident that totals your vehicle’s value when it’s being repaired after being damaged from an insured event, you will be very thankful that you chose this insurance to cover it all.
Depending on your driving record, the value of your car, and some other factors we already discussed, you may be able to score fairly cheap full coverage auto insurance.
If you have a clean record and drive an older car that’s not worth much (or any) money, full coverage might be less expensive than liability only. However, if you have had tickets or accidents in the past or have a new car that’s worth more than $10,000 to replace after it is totaled in an accident—and especially if you live in a city where theft is common—then full coverage will be more expensive but also make more sense for you.
In order to find the best full coverage auto insurance deals, we recommend you take your time and browse around different offers given by companies.
Full Coverage vs. Liability Auto Insurance: What’s the Difference?
The main difference between full coverage and liability auto insurance is that the former covers a much wider range of damages. For example, if your car were to be involved in an accident with another vehicle, you would have to pay for damage to the other person’s car or property. That’s where liability comes in—it covers your legal responsibility for any damages caused by your vehicle (up to a certain limit).
Full coverage includes both collision and comprehensive coverage, which can be added to a standard policy or purchased separately. These two types of insurance cover damage done by natural disasters (like hail storms) or man-made accidents (such as hitting a deer). They also protect against theft and vandalism by covering items stolen from inside the car or broken windows/windshields. They even help pay costs related to personal injury claims resulting from accidents caused by uninsured drivers who hit you while driving.
These are not the only two types of insurance available for your vehicle, so it is important while choosing the one to go with, you find the one that protects you the best considering your circumstances. It would make no sense to skip full coverage insurance if you for example live in a town where thefts are quite common.
The bottom line is that in almost all scenarios it is much cheaper to just pay for the insurance that covers a bit extra than to think you can finance everything out of pocket if something does happen.
How to Get Cheap Full Coverage Auto Insurance?
Getting cheap full coverage insurance isn’t some unachievable ideal that you can never get. To score the best prices all you need to do is shop around and compare quotes from several different carriers.
- Get as many quotes as possible. If you have a bit of extra time on your hands this can save you a lot of money in the long run. The internet offers you access to many insurance companies and a variety of rates, so it’s smart to take advantage of these options by having numerous companies provide their proposals for your vehicle. Also, consider using an independent agent who understands your needs and can work with multiple auto insurers to find the best price for you.
- Ask about discounts. Many carriers offer rewards or discounts that could lower the cost of your premiums by hundreds or even thousands each year. Make sure every company knows about any discounts that apply specifically to your situation like for example if you have a multi-vehicle discount, so they can factor them into their calculations when determining how much coverage is right for you at a particular price point. This can deduct quite a bit from the overall cost of insurance so don’t be shy to ask around for such offers.
Do You Need Full Coverage Auto Insurance?
There are a few instances in which full coverage auto insurance is an absolute must. If you have an expensive car, as well as other assets such as homes and boats, it may be wise to purchase full coverage on your vehicle.
You should also consider purchasing full coverage if you have a loan on your car. In case the vehicle is totaled or stolen, this policy will provide enough money to pay off the loan so that it doesn’t go into default. In addition, if someone else damages your car while driving it with proper insurance themselves, their insurance company will pay for repairs. But if they’re uninsured or underinsured for that accident, then yours will make up for any differences between actual costs and what was covered by their policy.
If your car is older, you don’t drive it as much, or just plan to buy a new one in the near future, then full coverage insurance might not make sense for you. The money you would spend this way can easily be saved up and used for a new vehicle you want to buy.
To sum up all that we covered here, full coverage auto insurance is a great option for those who want to be protected in the event of an accident. If you just got a brand-new car and want to protect yourself from any potential losses, full coverage auto insurance is the way to go. But, if you have an older car with high mileage which you plan on replacing soon, it may not make sense for you to consider this insurance policy.
You can even get your own policy by calling your insurance company or doing it online. This type of policy will cover all damages caused by you and your vehicle, including medical expenses and property damage claims made against you. However, this type does not cover any third parties that may be involved in an accident caused by you or anyone else driving on your behalf (such as family members).
This is certainly not an easy decision that should be made overnight, so take your time and browse around for the best offer you can get. While purchasing a vehicle many people forget to factor in any additional costs such as this one so they just decide to go for the cheapest option available. Nonetheless, if you ever get in an accident and your car needs some serious work, you will be thankful that you chose the full coverage policy as all these repairs will cost a fortune otherwise.