Everything You Need to Know

The best full coverage car insurance will vary depending on your needs. Consider factors such as how much it will cost to replace your vehicle, as well as minimum insurance requirements, when choosing the right coverage for you.

What Is Full Coverage Car Insurance?

Full coverage car insurance is typically a policy that has the following:

• Comprehensive: Comprehensive coverage covers vehicle repairs or replacement of a stolen or damaged vehicle. This could include damages not related to a car accident, such as weather or vandalism.
• Collision: Collision coverage covers repairs or replacement of a vehicle because of to an accident. This could involve a vehicle collision or a hit-and-run.
• Liability: Liability coverage covers damages and medical bills involving another driver if you are found to be at fault for a car accident. Liability insurance is usually required and is included in most insurance policies.
• Bodily injury: Bodily injury coverage covers the cost of medical bills from an accident.
• Property damage: Property damage coverage covers damages to property.

Full coverage car insurance exceeds the minimum requirements set by the state. Some parts, however, are usually required, including liability, bodily injury, and property damage.

Full coverage insurance can be useful if you’re in an accident in which you’re at fault, or when your costs exceed the compensation available through a minimum policy. For example, according to ValuePenguin, you should have full coverage if your vehicle’s value is higher than your annual premium and your deductible,

Additionally, if you have a loan or a lease on your vehicle, your lending agency may require you to have full coverage, including both collision and comprehensive. While this coverage is not required by law, you will likely agree to carry full coverage when buying or leasing a vehicle. Full coverage also covers a loss of vehicle from theft, which no-fault coverage does not.

How Much Is Full Coverage Car Insurance?

The national average rates for full coverage car insurance include:

• A driver with good credit: $1,592 annually.
• A driver with one at-fault accident on their record: $2,439 annually.
• A driver with poor credit: $2,812 annually.
• A driver with one DUI on their record: $3,114 annually.

Of course, these rates will vary, depending on many other factors, including age, location, level of coverage, and type of vehicle. Full coverage gives you peace of mind and protects you better than minimum coverage, but in return, it comes at a higher rate.

The best way to reduce full coverage rates is to shop around or reduce coverage. Different insurance providers will give varying quotes. Additionally, you may be able to lower your coverage without going to the minimum coverage.

Keep in mind that both comprehensive and collision insurance also only reimburse you up to the value of your vehicle. If your vehicle is older and not as valuable, it may not be worth it to have full coverage on it.

What Does Full Coverage Car Insurance Not Include?

It’s important to note that full coverage is not a specific type of insurance. Instead, it’s an insurance policy that includes the minimum coverage as well as additional coverage that’s optional. This means that what is and is not included will vary from provider to provider. For example, not all full coverage insurance policies include things like a new car replacement or emergency roadside assistance. These types of coverages may need to be added with a separate policy.

Additionally, optional coverages, including comprehensive and collision, have their own deductibles. This is the amount of money that you’ll pay out of pocket when you file a claim. In order to collect compensation from the insurance provider, you must cover the deductible.

According to Allstate, other add-ons you may need in addition to full coverage include uninsured motorist coverage, gap insurance, or medical gap insurance. Find out how much these cost to add to your insurance when shopping for quotes.

Best Full Coverage Car Insurance

Because full coverage is pricier than no-fault insurance, it’s important to shop around for the best rates. Geico is one of the top full coverage insurance providers. It has exceptional customer service and is available all over the United States.

Other good options for full coverage include State Farm, Progressive, Farmer’s, and Allstate. USAA is an affordable option for military members and their families.

Who Needs Full Coverage?

It’s important to consider your insurance needs and whether full coverage is right for you. Consider the following when deciding how much coverage you need:

• The age and value of your car: Newer cars that are valued higher will cost more to replace. Full coverage may be the only way to get the coverage you need.
• Your loan or lease agreement: If you have a loan on your vehicle or drive a leased vehicle, you may be required to carry full coverage. Always check your loan or lease agreement before buying.
• Your financial situation: If you find it difficult to make your car insurance payments each month, you might opt for reduced coverage. However, you also want to consider how much it will cost you out of pocket if you were in an accident.
• Driving history: If you have a poor driving history with a lot of traffic violations or accidents on your record, you will pay more for full coverage.
• Your driving habits: If you spend a lot of time commuting in busy traffic or traveling on the road, then you may need full coverage to protect yourself.
• Your location: Full coverage may also be advisable if you live in an area with harsh weather that could damage your vehicle or in an area with high theft occurrences.

Full coverage rates tend to vary significantly between states. If you’d rather have cheaper monthly rates than full coverage, you might choose a policy with only liability.

Full coverage insurance policies provide you with the most protection. But it’s important to first consider whether you need that much coverage. Full coverage is recommended for some drivers, whereas others may not need it.

Sources:

https://www.valuepenguin.com/best-cheap-full-coverage-auto-insurance

https://www.allstate.com/tr/car-insurance/what-is-full-coverage.aspx

https://www.caranddriver.com/car-insurance/a35437661/allstate-car-insurance/

https://www.caranddriver.com/car-insurance/a35291950/car-insurance-explained/

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