How To Find Cheap Full Coverage Car Insurance

Full coverage auto insurance is more expensive than a policy that only meets your state's minimum auto insurance requirements. However, if you are involved in a car accident, the additional coverage can be extremely beneficial.

This is because full coverage insurance helps pay for car repair bills and medical bills if you cause an accident that injures others. A good auto insurance policy can help you relax.

The phrase "full coverage auto insurance" does not refer to a specific policy type, but rather to a policy that includes liability, collision and comprehensive coverage. These three types of coverage provide a solid foundation for a car insurance policy. They cover the following topics:

• Liability insurance: In the event of an accident in which you are at fault, liability insurance pays for the other party's injuries and car repairs. It also covers your legal defense if you are sued as a result of the car accident.
• Collision insurance: Covers the cost to repair your vehicle but doesn’t cover the cost of the other party’s vehicle damage. Collision insurance can cover vehicle damage caused by another vehicle colliding with yours, as well as situations in which you back into a pole or accelerate into a building.
• Comprehensive insurance: Covers car theft and damage to your car related to weather, fire, flood, vandalism and falling objects. It also covers damage caused by colliding with animals such as deer.

Full Coverage Car Insurance Summary

How Much is Full Coverage Car Insurance?

According to the National Association of Insurance Commissioners, the average full coverage car insurance policy costs about $1,190 per year in the United States.

The liability portion of a car insurance policy is usually the most expensive.

What Does Full Coverage Car Insurance Consist Of?

Liability insurance, collision insurance, and comprehensive insurance are the three main components of full coverage car insurance. Here's a breakdown of how each type of coverage works.

Liability Insurance

Except for New Hampshire, all states require car owners to purchase a minimum amount of liability insurance. These state minimums outline two types of liability insurance:

• Bodily injury liability insurance covers the medical expenses of another party if you’re at fault.
• Property damage liability insurance covers damage to another person's property caused by a collision. This could be someone else's car, mailbox, fence, garden gnome collection, or structure.

Here's an illustration of how liability auto insurance works.

If you cause a car accident that causes physical damage to the other driver's car as well as injuries, the other driver may file a claim against your liability insurance for car repair costs and medical expenses. If the other driver sues you, your liability insurance will cover legal defense, settlements, and judgments.

But wait, there's a catch. If you don't have enough liability car insurance, you may be liable for any amount that exceeds your policy limit. That's why it's critical to go above and beyond your state's minimum requirements. For example, if you cause a car accident that results in multiple injuries, the medical bills may quickly exceed the minimum liability requirements.

Consider at least $100,000 in bodily injury liability per person, $300,000 per accident, and $50,000 or more in property damage liability. Drivers with high incomes and/or significant assets should consider higher amounts, as well as umbrella insurance, in case someone decides to sue.

Does Liability Insurance Cover My Car If Someone Hits Me?

Your own liability insurance only compensates others for the harm you cause. It will not cover your own car or your injuries.

If someone else is at fault in an accident, their liability insurance should cover the damage to your car and your injuries. However, the other person's insurance will only pay up to the limits they purchased. If the accident was costly, their insurance may not cover all of your expenses.

Furthermore, many drivers drive without any auto insurance at all. They have no insurance to cover the damage they cause if they collide with you. You can sue another driver who causes a collision, but not all drivers have assets that can be used to pay a lawsuit judgment.

Collision and Comprehensive Coverage

Collision and comprehensive coverage are essential for protecting your own vehicle from damage. Your liability insurance will not cover any of the damage to your car. This coverage is optional if you own your vehicle outright. If you have a car loan or lease, you will most likely have to purchase them.

Collision insurance covers damage to your vehicle caused by collisions with any object, such as a pole or guardrail. Comprehensive coverage covers car theft as well as repairs caused by weather, animals, vandalism, fire, flood, and falling objects.

Assume your car tyres slipped on ice and you collided with your neighbor's fence. Collision coverage would pay for your vehicle's repairs. The neighbor's fence would be covered by liability insurance.

Comprehensive coverage would pay for car damage if you drove across a flooded street without realizing how deep it was.

Both collision and comprehensive coverage have deductibles, which can be $500 or $1,000. If you file a claim, this is the amount deducted from your insurance check.

What is Recommended for Car Insurance Coverage?

Adding uninsured motorist coverage and personal injury protection to full coverage car insurance usually results in the best auto insurance policy. These types cover various types of injuries to you and your passengers. These are required in some states.

Uninsured Motorist Coverage

Uninsured motorist coverage protects you against drivers who do not have auto insurance. In most cases, if you are injured in a car accident caused by the other driver, their liability coverage should cover your medical expenses. However, if the other driver is uninsured, uninsured motorist coverage will assist in covering your medical bills.

Underinsured motorist coverage, which is similar to collision coverage, pays your medical bills when the other driver is at fault but does not have enough liability insurance to cover your costs.

These types, like other types of car insurance, pay up to the limit you specify. Buying low limits can leave you with unpaid bills after a costly car accident.

Medical Payments Coverage and Personal Injury Protection

Medical payments coverage (MedPay) pays for your and your passengers' medical bills regardless of who is at fault. Ambulances, surgery, and X-rays are examples of such services. It is not available in every state.

Personal injury protection (PIP) will also help cover medical expenses regardless of who is at fault. PIP insurance is required in some states. In other states, it is optional or not available. PIP insurance can also cover lost wages and the cost of hiring help for tasks that you are unable to perform due to an accident, such as child care.

Auto Insurance Extras

Rental Reimbursement Coverage

If your vehicle is out of commission due to a repair, you may need to rent a car. If the repairs are covered by your insurance, rental reimbursement coverage can help cover the cost of a rental car.

Rental car reimbursements typically have daily and maximum limits. So, before you rent a luxury SUV for a week, make sure you understand the reimbursement limit. You can pay the difference if you go over your rental limit.

This is distinct from rental car insurance, which covers cars rented for vacations and other non-accident purposes. That coverage is typically available as part of a car insurance policy, through a rental car company, or through the credit card used for the rental.

Roadside Assistance

Roadside assistance insurance can pay for services such as tyre changing, gas delivery, and lockout assistance. You don't need this insurance if you already have roadside assistance from your car manufacturer or a AAA membership.

Gap Insurance

If your car is totaled (or stolen) and you file a collision or comprehensive claim, your insurance company will compensate you based on the vehicle's actual cash value (ACV). However, this settlement may not cover the remainder of your auto loan or lease balance. This could result in you being in default on your loan or lease.

If you have gap insurance, it will pay the difference between the settlement and the amount owed on the vehicle. If you financed the vehicle, your lender may require gap insurance. If you have a lease, it may already be included in the monthly payment.

How to Get Cheap Full Coverage Car Insurance

You don't want to overpay for auto insurance, no matter what options you choose. Here are some strategies for finding low-cost full-coverage car insurance.

Price shop: Before you buy a policy, compare car insurance quotes. To compare apples-to-apples prices, make sure your quotes include the same coverage types and limits. Simply doing comparison shopping can save you hundreds of dollars.

Take higher deductibles: An insurance deductible is the amount deducted from your insurance check. Deductibles for collision and comprehensive insurance are $500, $1,500, and $2,000. You should save money if you increase your deductible. Liability insurance has no deductible.

Maintain good credit: Many auto insurance companies base policy pricing on credit. They use a credit-based insurance score, which differs slightly from a standard insurance score. Credit, according to insurers, can be used to predict whether or not you will file claims. Improving your overall credit history should result in higher credit-based insurance scores.

Take advantage of discounts: Car insurance discounts are common for bundling multiple policies and insuring more than one vehicle. Low mileage discounts, safe driver discounts, and price breaks for everything from going paperless to setting up automatic EFT payments are also likely.

Your auto insurance policy is only as good as the next claim you make. If you only purchase the bare minimum of coverage, you may find yourself with repair and medical bills to pay out of pocket. Purchasing adequate car insurance is a way to safeguard the financial future you're constructing.

Which Car Insurance Company Has the Cheapest Full Coverage Rates?

For the same coverage, car insurance rates vary greatly between insurance companies. That is true whether you are looking to purchase the minimum requirements for your state or full coverage. Comparing car insurance quotes is the best way to find a good policy at a reasonable price.

The following are the average rates for full coverage auto insurance.

As you can see, shopping around can save you hundreds of dollars per year. The best cheap car insurance companies offer competitive rates to a wide range of drivers, including good drivers, those with poor credit, those with a speeding ticket, and those with an at-fault accident on their driving record.

Don't forget to inquire about car insurance discounts. Additional savings, such as safe driver discounts, bundling your auto and home insurance, anti-theft features, and vehicle safety features, are frequently available.