Full Coverage Auto Insurance: Getting The Best Protection

Full coverage auto insurance is a general term used by agents, lenders, and dealerships to describe a policy that includes certain coverages. It is not an actual type of coverage but a collection of coverages that protect against various circumstances. While there is no standard definition of full coverage, it typically includes liability, collision, and comprehensive coverages, as well as any other coverages mandated by the state. Liability coverage is required in nearly every state and covers damages or injuries caused to another vehicle or person. Collision coverage protects your vehicle in the event of a collision with another object or vehicle, while comprehensive coverage insures against non-driving-related incidents, such as theft, vandalism, or animal collisions.

Liability coverage

Bodily injury liability coverage safeguards you financially in the event that you cause an accident that results in injuries to another person. It covers the medical expenses of the injured individual, including their medical bills and loss of income. This aspect of liability coverage is crucial, as it ensures that you are not held solely responsible for bearing the financial burden of another person's medical treatment resulting from an accident for which you are at fault.

Property damage liability coverage, on the other hand, comes into effect when you cause damage to another person's vehicle or property. This coverage type ensures that the costs of repairing or replacing the damaged property are covered by your insurance policy, up to a specified limit. This can include damage to another vehicle, a fence, or even a building.

It is important to note that liability coverage only applies when you are deemed to be at fault for the accident. Additionally, liability coverage does not extend to injuries sustained by you or your passengers, nor does it cover any damage to your own vehicle. To protect yourself and your passengers, you may need to consider additional coverages, such as medical payments coverage or personal injury protection.

While liability coverage is a mandatory requirement in most states, the specific limits and requirements can vary. It is essential to review the regulations in your state to ensure that you have the necessary coverage to comply with legal requirements. Additionally, you may want to consider purchasing higher liability limits than the state minimum to provide yourself with greater financial protection in the event of an accident.

In summary, liability coverage is a fundamental aspect of auto insurance that safeguards you from financial liability in the event of an accident. By including bodily injury and property damage components, liability coverage provides protection against the financial repercussions of causing injuries to others or damaging their property. However, it is important to complement it with other types of coverage to ensure comprehensive protection for yourself and your passengers as well.

Comprehensive coverage

The cost of comprehensive coverage will depend on factors such as the age, make, and model of your vehicle, as well as the deductible you choose. A higher deductible will typically result in lower insurance costs.

Collision coverage

Unlike comprehensive coverage, collision coverage does not include accidents involving animals, theft or vandalism, or damage caused by weather events or fallen objects. It also does not cover medical expenses or damage to another vehicle.

While collision coverage is not legally required in any state, it may be required by your lender if you are leasing or financing your vehicle. If you own your vehicle outright, it is up to you whether you choose to carry collision coverage. However, without it, you would have to pay out of pocket to repair or replace your vehicle if you were involved in a single-vehicle accident or found at-fault in an accident.

When deciding whether to opt for collision coverage, consider the value of your vehicle and whether you would be able to afford repairs or a replacement vehicle out of pocket. If your vehicle won't be driven for a long period, such as a boat or RV, you may not need collision coverage while it's in storage.

When you need full coverage

While there is no exact definition of "full coverage" auto insurance, it typically includes liability, collision, and comprehensive insurance, as well as any other coverage the driver may want or that is required by their state. The specific combination of policies and coverage offered by insurance carriers varies by state, and it's up to the driver to determine what level of coverage they need.

Full coverage auto insurance is often a combination of coverages required by your state or personal needs. It's important to note that there is no auto policy called "full coverage" that will cover all possible damage to your car. Liability coverage, which is required in nearly every state, covers your responsibility to the other driver or passengers for injury and property damage in the event of an accident where you are at fault. Collision coverage applies to damage that occurs to your car if you collide with something, while comprehensive coverage pays for things that happen to your vehicle outside of a collision, such as fire, theft, storm damage, animal damage, or falling objects.

In addition to these standard components of full coverage auto insurance, drivers may also choose to add on other types of coverage, such as personal injury protection, medical payments coverage, uninsured motorist coverage, or gap insurance. The more comprehensive your coverage is, the more expensive your car insurance policy will be.

When deciding whether to opt for full coverage auto insurance, consider the age and value of your car. If your car is older and has low value, you may not need full coverage. On the other hand, if you have a new car that would be expensive to repair or replace, full coverage is a good idea. Additionally, if you have a loan or lease on your car, full coverage is usually required by the lender.

Full coverage auto insurance provides peace of mind and protects you and your vehicle in almost every scenario. While it is more expensive than liability-only insurance, it is worth the extra cost for many drivers.

How much full coverage costs

The cost of full-coverage car insurance varies depending on a number of factors, including your age, driving history, location, insurance provider, and the coverage you select. While there is no standard definition of "full coverage" car insurance, it typically includes liability, comprehensive, and collision insurance to cover you in most scenarios.

On average, full-coverage car insurance in the US costs $194 per month, or $2,329 per year. However, the cost can vary significantly depending on your specific circumstances. For example, young drivers tend to pay more for car insurance due to their lack of driving experience. Additionally, drivers with a history of accidents, traffic violations, or DUIs will typically pay higher premiums.

The cost of full-coverage car insurance also depends on the state you live in. For example, Idaho, Vermont, Ohio, Maine, and Hawaii have some of the cheapest annual full-coverage car insurance rates, while New York, Louisiana, Florida, Colorado, and Nevada have the highest average costs.

It's important to note that full-coverage insurance is not legally required by states. However, it is typically required for drivers who lease or finance their vehicles. Additionally, insurance experts recommend full coverage for vehicles worth more than $4,000.

When shopping for full-coverage car insurance, it's essential to compare quotes from multiple providers, as rates can vary significantly between companies. By considering your specific needs and comparing rates, you can find the best coverage at the most competitive price.

Frequently asked questions