Full Insurance Coverage is a type of auto insurance that combines different types of coverage to protect you in various situations. It includes:
1. Liability insurance: This pays for other people’s medical bills and property damage if you cause an accident.
2. Collision insurance: This pays for damage to your car after an accident, regardless of who’s at fault.
3. Comprehensive insurance: This pays for damage to your car from things like natural disasters, theft, or vandalism.
While full coverage car insurance isn’t required by law, it offers extra protection beyond the minimum requirements in your state.
It covers a wide range of situations, including damage from accidents, storms, hitting an animal, or theft. If your car is stolen, your insurance will even pay you the current value of the car so you can replace it.
What Does Full Car Insurance Coverage Cover?
Full coverage insurance protects you in many situations, such as damage from storms, accidents where you’re at fault, hitting an animal, or vandalism. If your car is stolen, this insurance will also pay you the current value of your car so you can buy a new one.
Here are the types of coverage you might have in a full coverage insurance policy and what they do.
Here’s what each type of coverage does:
- Bodily injury liability: Covers medical costs for injuries or deaths from an accident you caused.
- Property damage liability: Pays for repair costs for property you damaged in an accident.
- Uninsured motorist bodily injury liability: Covers medical costs after an accident with a driver who doesn’t have insurance.
- Uninsured motorist property damage coverage: Pays for repair costs after an accident with a driver who doesn’t have insurance.
- Collision coverage: Pays for repair costs to your car if you crash into another vehicle or object, like a tree or telephone pole.
- Comprehensive coverage: This covers repair costs from events you can’t control, like weather damage, hitting an animal, theft, or vandalism.
Think of full coverage car insurance like a knight’s suit of armour. Just like a knight starts with a breastplate for protection, you start with your state’s required car insurance. But sometimes, that basic protection isn’t enough. Adding extra coverage types is like adding more armour pieces to protect different parts of your body.
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However, full-coverage auto insurance doesn’t cover everything, and it might not include all the types of insurance mentioned earlier. If you want extra features like new-car replacement insurance, roadside assistance, or coverage for custom parts, you might need to add them separately.
Cost Of Full Car Insurance Coverage
Full coverage auto insurance is like having all the bells and whistles when it comes to protecting your car. It covers not just the basics, like if you accidentally hit someone else’s car, but also things like if your car gets stolen or damaged in a storm. But all this extra protection comes at a cost.
On average, full coverage auto insurance in the US costs about $1,982 per year, which works out to be around $165 per month. That’s quite a bit more than just getting the minimum insurance required by law, which only covers the basics. So, it’s important to shop around and compare prices from different insurance companies to make sure you’re getting the best deal.
When you’re looking at prices, keep in mind that the cost can vary depending on a few factors. For example, your age, driving record, and credit score can all affect how much you’ll pay for insurance. So, even if you’re the same age as someone else, if you have a better driving record or credit score, you might end up paying less.
Now, let’s break down the average cost of full coverage auto insurance from some of the biggest insurance companies in the country. These numbers are based on a 35-year-old driver with a good driving record and good credit.
- Company A: $1,950 per year
- Company B: $2,200 per year
- Company C: $1,800 per year
- Company D: $2,100 per year
As you can see, there’s quite a bit of variation in prices between different companies. So, it’s worth taking the time to shop around and compare quotes to find the best rate for you.
Ultimately, full coverage auto insurance might seem expensive, but it provides you with a lot of peace of mind knowing that you’re fully protected in case anything happens to your car. And if you can find a good deal on insurance, it can be well worth the investment in the long run.
When it comes to the cost of full coverage auto insurance, different companies have different prices. Here’s a breakdown of the average annual premiums for full coverage insurance from some major insurance companies:
- Allstate: $2,665 per year
- American Family: $1,791 per year
- Farmers: $3,106 per year
- Geico: $1,846 per year
- Nationwide: $2,279 per year
- Progressive: $2,112 per year
- State Farm: $1,976 per year
- Travellers: $1,681 per year
- USAA*: $1,432 per year
As you can see, there’s quite a range in prices. So, it’s important to compare quotes from different companies to find the best rate for you. Keep in mind that these prices are based on a 35-year-old driver with a good driving record and good credit.
Is full coverage auto insurance worth it?
Full coverage policies pay for repairs to your car if it’s damaged, while minimum insurance only covers damage to others. If you don’t want to foot the bill for your car repairs, or can’t afford them, full coverage could be a lifesaver.
Who Needs Full Car Insurance Coverage
Full coverage insurance might be a good idea if:
- You drive a new or expensive car.
- You have a car loan or lease.
- You often drive in heavy traffic.
- You live in an area with extreme weather, high car theft rates, or lots of animals on the road.
- You can’t afford to fix or replace your car if it’s wrecked or stolen.
But if you drive an older car, full coverage might not be worth it. Comprehensive and collision insurance will only pay you up to the value of your car when it’s damaged or stolen. Plus, these types of coverage usually come with a deductible, which is an amount you have to pay before the insurance kicks in.
If your deductible is more than what your car is worth, it might not make sense to have these coverages. For example, let’s say your car is worth $1,500. You have comprehensive collision insurance with a $1,000 deductible, costing you $600 a year.
If you get in an accident and your car is totalled, the most you’ll get from your insurance is $500, which is your car’s value minus your deductible. So, in this case, you’re left with $500, which is $100 less than what you paid for the coverage.