What is full-coverage car insurance? It is a combination of collision, liability, and comprehensive insurance that provides coverage for most plans. It provides coverage for things like damage to your car, vandalism, hitting an animal, or accidents. If you just bought a brand-new car, you may have to purchase full-coverage car insurance. Also, you might have to purchase this insurance if you live in a place with extreme weather conditions or have an auto loan or lease.
You might have heard of full-coverage car insurance while shopping for coverage. But you might not understand what it means. It is just a combination of separate coverage types. However, when you are choosing coverage, you should consider factors such as the cost of replacing your vehicle and the minimum insurance requirements in your state.
What is Full-Coverage Car Insurance?
Full coverage Auto insurance can simply be described as an auto policy that merges liability insurance with collision insurance and comprehensive insurance. With this combination of insurance, any damage to your car will be repaid. Aside from that, it also covers injuries or damage you cause to others.
How much is Full-Coverage Car Insurance?
The average cost of full-coverage car insurance is $2,148 per year and about $179 per month. Note: This amount is for a 35-year-old good driver with good credit. However, it is advisable to compare quotes from multiple companies if you want to find the cheapest rate.
Factors that affect the cost of full coverage car insurance
Certain factors will affect the price of full-coverage auto insurance. This factor includes:
Your Driving Record
With a clean driving record, the amount of money you will pay will be less than that of a driver with a ticket or accident on their record.
The model of your vehicle will determine the cost of this insurance. Previous claims for your make and model vehicle, repair costs, and the value of your vehicle will affect the cost of full coverage insurance.
Car Insurance History
You may have to pay more money if you have made car insurance claims in the past.
Where Do You Live?
If you stay in an overpopulated area, it tends to increase the amount you will pay. This is because overpopulated areas are more likely to have accidents. Also, areas with more severe weather, higher crime rates, or higher pair costs will pay higher rates.
Years of Driving Experience
Having less experience in driving means you will be paying more. This is because less experienced drivers have a higher risk of being in an accident.
Both senior and younger drivers will pay more for full coverage. Teen drivers will also pay more because they are less experienced.
Is Full-Coverage Car Insurance Important?
Yes, it is important if you are financing your vehicle. It is also important if your vehicle is very expensive. For instance, if you bought your vehicle for over $4,000 or more, then you need this full coverage.
Do I Need Full-Coverage Insurance?
Full-age auto insurance is an excellent choice for this group of people.
- If you have an auto loan or lease,
- Drive a new or expensive car.
- If you cannot afford to repair or replace your car if it is stolen or wrecked,
- If you regularly commute in heavy traffic,
It is also ideal for people who live in a place with high car theft rates, a high risk of animal collisions, or extreme weather. However, if you are driving an old vehicle, you do not need to purchase full coverage.
What Does Full-Coverage Car Insurance Cover?
Full-coverage auto insurance offers three coverages: liability coverage, comprehensive coverage, and collision coverage. Let’s take a look at what these coverages offer.
For liability coverage, it covers accidents that occurred because of the insurer. If you cause an accident, this coverage will cover the other party’s property damage costs and injuries. It will cover the driver’s medical bills, lost wages, legal expenses in the case of a lawsuit, and property repairs.
For comprehensive coverage, consider the cost of repairing your vehicle if it was damaged due to a cause that has nothing to do with a collision with another car or stationary object. For instance, most insurance policies cover vehicle damage from fires, hail, floods, falling tree branches, or hitting an animal. Theft, burglary, and glass breakage.
This is an optional coverage type unless it is required by your bank or lender while you are repaying a car loan. Collision coverage takes care of the cost of repairing your vehicle if you are at fault in an accident.
Best Full-Coverage Car Insurance Providers
You might want to consider these full-coverage car insurance providers if you are looking to purchase full-coverage insurance. Even though full coverage is expensive, you can trust these providers to give you the best insurance coverage.
First on this list is State Farm. They are one of the biggest insurance providers in the country, and you can never go wrong with them. You can easily submit and process a claim with them.
Another full-coverage auto insurance company you can trust is Geico. It has exceptional customer service, and customers have given good reviews about them. Geico is available in over 50 states, and you can easily get an insurance quote online.
If you are looking for affordable full-coverage car insurance rates, you should give USAA a try. It is not only affordable, but it also has great customer service. Note: USAA is only available to former military members, including their families.
Lastly, Allstate. This is an underrated full-coverage auto insurance provider. It is underrated because people do not know that it has accident forgiveness, new car replacements, and safe-driving bonuses as well. With its effective online tool, you can easily request a quote or file a claim.