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What Is Full Coverage Car Insurance?Full auto coverage includes comprehensive and collision insurance, in addition to any optional coverages you need and your insurer offers. In the instance of an accident, it provides financial protection against damages to your vehicle and occupants, as well as damages to the other party’s vehicle and passengers. Overall, insurance costs vary depending on the insurance company, location and individualized factors. You can find cheap full coverage car insurance by shopping around and comparing prices. Keep in mind, full coverage is an unofficial term used to reference a combination of coverages, so it may not be available on insurance quote tools. Loading... How Does Full Coverage Car Insurance Work?Full auto coverage typically includes liability, comprehensive and collision insurance. Liability car insurance covers damages other parties incur if the policyholder is at-fault in an accident. Meanwhile, the comprehensive and collision aspects protect the policyholder and their vehicle in the event of an accident. Full coverage auto insurance is typically more expensive than other types of insurance because it offers more coverage. Depending on your needs, finding the best car insurance for your situation may need to include other optional coverages. Your insurance, no matter what coverage type you choose, will have deductibles. It will also have maximum benefits and limits, which means it cannot cover all possible incidents. What Does Full Coverage Insurance Typically Cover?There are various situations that full coverage auto insurance covers. It typically includes the state minimum liability requirement, as well as comprehensive and collision coverage. But generally, there is no single definition as to what full coverage means. That is because it is an informal term used to describe a policy that has a combination of different types of coverage. Typical Full Coverage Inclusions
Additional Insurance Option
What Doesn't Full Coverage Insurance Cover?What your policy covers will be based on the types of coverage you include. Typically, it covers damages up to the limits set in your policy. However, there are incidents where full auto coverage is not applicable. These include:
How Do I Know if I Have a Full Coverage?Check the details of your policy to discover if you have full coverage auto insurance. You may also confirm with your insurance provider about the types of coverage your policy has. For instance, if you only have bodily liability and property damage liability, then your policy is liability-only insurance. But if you have bodily liability, property damage liability, comprehensive, collision and other coverage, then you have full coverage. If you have an online account or your insurance provider has a mobile application, you may also see the details of your policy there. Depending on the state where you live, you may also check insurance details in your vehicle registration or with the help of the state Department of Motor Vehicles (DMV). Understanding Full Coverage Auto InsuranceWhile full coverage auto insurance provides financial protection, it may not be suitable for everyone. There are instances when it is not the best option. Know the pros and cons and find out if full coverage auto insurance is a good choice for you. The Benefits and Drawbacks of Full CoverageUnderstanding the benefits and drawbacks of full auto coverage is important to help you decide whether it is the right option. MoneyGeek breaks down some of the pros and cons in the table below. BENEFITS
DRAWBACKS
Who Will Need Full Coverage?While most states, if not all, require drivers to have auto insurance, having full auto coverage is not mandated by law. However, there are instances when it makes sense to pay extra.
Should You Consider Getting Full Coverage?Assessing your needs and circumstances will be the first step to determine whether you should consider getting full coverage auto insurance. If you fall under any of the situations mentioned above, then paying extra for full coverage makes sense. However, there are also instances when buying full coverage is not worth the cost. For example, if you are driving an old or low-value vehicle, paying more on car insurance may not be the best idea. If you can afford the cost of replacement or repair of your car if it gets damaged or stolen, then you may opt for a state minimum coverage. This way, you get to save money on premiums. How to Get Full Coverage Auto InsuranceMost major insurance providers offer comprehensive and collision insurance. You may also find companies that have optional coverages. The following steps can help you get started. 1 Assess your needsThe first thing you need to do is to determine what type of coverage you need. Based on these, you can start your search for a full coverage policy. 2 Find insurance providersYou should look for insurance companies that offer the types of coverage you want to purchase. While most companies offer liability, comprehensive and collision insurance, optional coverages may vary. 3 Get quotesAsk for a personalized quote based on your needs and circumstances. Most companies offer online quote tools accessible to the public. 4 Compare prices and policiesGet quotes from multiple insurers. It is ideal to request from at least three insurance providers. This way, you can compare the policy features and premium prices and choose the one that best fits your needs. How Much Does Full Coverage Cost?On average, full auto coverage is more expensive than a liability-only policy. This is because insurance companies take on more risk by agreeing to cover you, your passengers and your vehicle in the event of a collision or other types of accidents. To calculate the cost of your policy, the insurance provider will consider all types of coverage you purchase. That means adding more coverage, including the less common types like roadside assistance and GAP coverage, will further increase your premium. In most cases, drivers who buy full coverage auto insurance opt for liability coverage higher than the state minimum requirements. The most common liability level is 100/300/100. THE COST OF FULL COVERAGE VS. LIABILITY-ONLY INSURANCE Full coverage car insurance with 100/300/100 liability level and comprehensive and collision insurance costs an average of $1,424 per year. In comparison, a 50/100/50 liability-only auto insurance only costs an average of $898 annually. That means a full coverage policy typically costs $526 or 58.57% more per year. 4 Ways to Save On Full Coverage Auto InsuranceSome people decline full coverage auto insurance due to the high premium prices. However, driving without full coverage can cost you more in the instance of an accident or a vehicle theft incident. Below are some ways you can save on full coverage car insurance. 1 Shop aroundChecking your options regularly can help you find affordable full coverage insurance. Compare rates from at least three insurers to find a policy and coverage that you need. It’s ideal to shop around and update your insurance coverage before your policy renewal date. 2 Check available discountsCompanies offer various discounts for auto insurance policyholders. Ask your agent if your insurer has saving opportunities and you might also compare what other companies have to offer. Many insurers give discounts to drivers with clean records, those who have completed defensive driving programs and students with good grades. 3 Increase your deductibleDeductible refers to the amount you pay out-of-pocket when you file a claim. Increasing this will help lower your monthly or annual premiums. 4 Save money for emergency repairs and other possible extra expensesInsurance claims may increase the cost of premiums. By having an emergency fund, you can prevent filing a claim for minor expenses like glass damages or roadside services. Full Coverage Car Insurance FAQsUnderstanding full coverage car insurance can be a bit overwhelming, especially for first-time auto insurance policyholders. MoneyGeek answers some frequently asked questions (FAQs) to help you better understand this type of coverage. Expert InsightsFull coverage car insurance can be a complicated topic, especially for individuals who have never gotten it before. MoneyGeek spoke with industry leaders to help you gain a better understanding on the topic.
Matthew Davis President and CEO at GDI Insurance Agency, Inc. John Espenschied Agency Owner of Insurance Brokers Group Lauren Mckenzie Insurance Agent and Broker at A Plus Insurance Related ContentUnderstanding auto insurance will help you make better-informed decisions when purchasing a policy. MoneyGeek breaks down some related terms and concepts that may help you.
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Is comprehensive the same as full coverage?In most cases when an insurance company, agent, or lender references full coverage auto insurance they typically mean comprehensive and collision plus any other coverages required by your state. On Screen Text: Full coverage auto insurance. Comprehensive + collision + state-required coverages.
Is full Comprehensive worth it?Comprehensive insurance can save you money if you can't afford to pay for repairs (to your or someone else's car) or live without your car. Third party property, fire and theft insurance might suit you if you park on the street. It will save you money if your car gets stolen.
What is considered to be full coverage?Full coverage car insurance is a term that describes having all of the main parts of car insurance including Bodily Injury, Property Damage, Uninsured Motorist, PIP, Collision and Comprehensive. You're typically legally required to carry about half of those coverages.
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Whats the difference between comprehensive and full coverage
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