In most cases, full coverage auto insurance refers to a mix of policy kinds that can safeguard your vehicle. There is nothing like a “full coverage auto insurance policy,” although you’ve probably heard of it.
However, this added security is not free. Because it covers more instances, full coverage insurance is far more expensive than liability insurance alone. Liability insurance only compensates for injuries and damage you cause to others. It’s critical to browse around for the best rates on full coverage insurance if you want to save money.
What does full coverage auto insurance cover?
Full coverage insurance covers most circumstances, including weather-related damage to your car, an at-fault accident, colliding with an animal, and vandalism. It will even compensate you for the current worth of your automobile if it is stolen.
Full coverage auto insurance, on the other hand, does not cover everything. You may need to purchase additional coverage such as new-car replacement insurance, emergency roadside assistance, or custom parts and equipment coverage separately.
What does full coverage auto insurance cost?
According to a study of average vehicle insurance rates, the national average cost of full coverage auto insurance in 2021 is $1,592 per year or roughly $133 per month for a 40-year-old good driver with good credit.
Liberty Mutual isn’t included in our research since it doesn’t give rate data, despite being one of the country’s largest insurers.
By firm, full coverage insurance vs minimal rates
We have analyzed minimal and complete coverage auto insurance premiums across the US in 2021. On average, full coverage insurance costs more than twice as much as minimal coverage among the largest employers.
Who needs comprehensive auto insurance?
Auto insurance with full coverage is not mandatory by law. In many places, only a small amount of motor liability insurance is necessary. However, only damage or injuries you cause to others will be covered, not your injuries or automobile repairs.
Suppose you have a new or expensive car, then buying full coverage auto insurance may be a good investment if you:
- Have an auto loan or lease
- Regularly commute in heavy traffic
- Are residing in an area with severe weather conditions, high car theft rates, or a high risk of animal collisions
- You cannot afford to fix your car after damage or replace it if it is stolen.
Full coverage, on the other hand, may not be worth the money for an older vehicle. Comprehensive and collision insurance only covers the cash value of your car if it is damaged or stolen. They also frequently come with an insurance deductible, which is the amount you’ll have to pay out of pocket for repairs or replacement.
Assume your comprehensive and collision insurance costs $600 per year, with a $1,000 deductible. If your car value is $1,500, your claim cheque will be no more than $1,000. This leaves you with $500, which is $100 less than the cost of insurance. Checking the current worth of your car will help you decide whether or not full coverage is necessary.
Even if you have complete coverage, you may require additional policy alternatives. Uninsured motorist coverage, gap insurance, and medical payments coverage, for example, all cover bills that full coverage automobile insurance does not. Try out different coverage options when comparing online vehicle insurance quotes if you don’t have insurance coverage.
How to Save Money on Car Insurance With Full Coverage
Shop around: It’s critical to look around for low-cost full-coverage insurance. Compare at least three providers’ rates to find the best prices.
Look for discounts: Automobile insurance discounts are available for everything from good grades to owning a new car. To maximize your discounts, call your agent to confirm what they are providing.
Increase your deductible: If you haven’t already. Your deductible, or the amount you pay prior to the beginning of your insurance coverage, is one way to save on car insurance. Although savings vary per business, doing so will cut the overall cost of your coverage.
Avoid traffic infractions at all costs: Even after a single occurrence, speeding citations, accidents, and DUIs can significantly raise your vehicle insurance costs. If you want the best rates, take extra care to drive safely. These offenses can linger on your record for three to five years.
Work on improving your credit score: Your credit history might significantly impact the cost of your auto insurance. In fact, according to our research, having bad credit might raise your insurance costs as much as a DUI for some drivers.
The most important takeaways
- Full coverage auto insurance is a combination of coverage categories rather than a single policy.
- If you have a new automobile, reside in an area with extreme weather, or have an auto loan or lease, you may want or need full coverage insurance.
- Full coverage auto insurance policies can cost twice as much as state-mandated insurance, but they provide better protection.
Click here to learn more about auto insurance.