Full Coverage Auto Insurance: Affordable Options

Getting cheap full-coverage auto insurance can be tricky, but it's not impossible. While the term full coverage is somewhat misleading, it generally refers to a combination of collision and comprehensive coverage, which protect your vehicle from physical damage. To get the best deal, it's important to compare quotes from multiple insurance providers and consider factors such as your age, driving history, location, and vehicle type. Additionally, maintaining a clean driving record, bundling policies, and adopting safe driving habits can help lower your insurance rates. Remember that cheap insurance shouldn't compromise quality, so choose a reputable company with good customer service and the coverage options you need.

Compare quotes from multiple companies

Comparing quotes from multiple companies is the best way to find cheap full-coverage auto insurance. The cheapest companies for full-coverage car insurance are not always the most well-known, so it's important to get a variety of quotes.

The Zebra's analysis found that the cheapest full-coverage car insurance is offered by Travelers ($112/month), USAA ($114/month), and Nationwide ($123/month). However, USAA insurance is only available to military members, veterans, and their families.

Erie and State Farm also offer affordable full-coverage insurance and are available in every state.

To compare quotes from multiple companies, you will need to provide some personal information, such as your address, date of birth, occupation, driver's license, and marital status. You will also need to provide information about your vehicle, including its mileage, date of purchase, and vehicle identification number (VIN).

It's important to compare quotes from at least three different insurers to find the best rate for your needs. In addition to price, you should also consider the company's customer service reputation and financial strength.

By comparing quotes from multiple companies, you can save a significant amount on your auto insurance. According to Compare.com, the average comparison shopper saves $60 per month on their car insurance by comparing quotes.

Choose a good, reputable company

Choosing a good, reputable company is crucial when it comes to auto insurance. While cheap rates are tempting, they could come at a high price if you're in an accident. A good, reputable company will take care of you and your wallet.

When choosing a company, look for one with a strong financial rating, excellent customer service and a low level of complaints. You can find this information by checking third-party ratings from companies like J.D. Power, AM Best, S&P and Moody's, as well as the National Association of Insurance Commissioners (NAIC).

You should also consider a company's claims satisfaction rating. This will give you an idea of how easy it is to file a claim and how satisfied customers are with the outcome.

• State Farm: State Farm has the cheapest car insurance for most drivers, at $50 per month for liability coverage and $124 for full coverage. It also has a high score on J.D. Power's claims satisfaction survey and gets fewer complaints than similar companies, according to the NAIC.
• USAA: USAA has the cheapest rates overall at $34 per month, but it's only available to military members, veterans and their families. It also has excellent customer service and is highly rated by J.D. Power.
• Erie: Erie has some of the cheapest rates for teen drivers and is known for its good customer service. It also has excellent grades from repair specialists for its claims handling practices.
• Geico: Geico has relatively cheap insurance for drivers with poor credit and is competitively priced for many other types of drivers. It also has a low level of complaints.
• Auto-Owners: Auto-Owners has superior financial strength ratings and is available in 26 states. It also has a low NAIC complaint index.
• Progressive: Progressive is a good option for high-risk drivers and has the cheapest rates for drivers with a DUI. It also has a low level of complaints.
• Nationwide: Nationwide has excellent rates for a variety of driving records and ages, and it has a wide range of coverage options. It also has low complaint levels.

Get a policy with comprehensive and collision coverage

Collision and comprehensive coverage are optional in most U.S. states, but they are an essential part of a full-coverage auto insurance policy. Collision coverage pays for damage to your car resulting from a collision with an object (e.g. a telephone pole or guard rail) or as a result of flipping over. It reimburses you for the costs of repairing your car, minus the deductible. The average cost of collision coverage is about $290 per year.

Comprehensive coverage, on the other hand, covers damage to your car caused by disasters other than collisions. This includes damage from natural disasters such as earthquakes, floods, hurricanes, tornadoes, and volcanic eruptions, as well as contact with animals, theft, and fallen objects such as trees and branches. Comprehensive coverage costs significantly less than collision coverage, with an average annual cost of just over $134.

If you're looking for a full-coverage policy, you'll want to make sure it includes both collision and comprehensive coverage. Keep in mind that the cheapest full-coverage policy may not always be the best option, as it could have a high deductible or lack certain coverage options. It's important to compare quotes from multiple insurance providers and consider factors such as customer service and claims satisfaction when choosing a policy.

Choose a higher deductible

A deductible is the amount you pay out of pocket before your insurance carrier starts paying for repairs. Typically, you will have to pay the deductible each time you file a claim. For example, if you have a deductible of $1,000 and a repair cost of $3,000, you will pay $1,000 and your insurance company will pay the remaining $2,000.

When choosing your deductible, it's important to consider the value of your car, your savings, the cost difference for each deductible, and your tolerance for risk.

Value of Your Car

If your car is worth less, you will get less from your insurance company if it is damaged in an accident. For example, if your car is worth $3,500 and you have a deductible of $1,500, the insurance company will only pay $2,000 after you cover the deductible. In this case, a lower deductible is better.

On the other hand, if your car is worth $10,000 and you have a deductible of $1,000, the insurance company will pay $9,000. Here, a higher deductible makes more sense.

Savings

If you don't have savings or an emergency fund to cover a high deductible, it may be better to choose a low-deductible policy. The higher monthly bills for insurance premiums may protect your finances in the event of an accident.

Cost Difference

When comparing auto insurance policies, consider the difference in price between plans with high and low deductibles. It's best to run different calculations and compare your out-of-pocket expenses for different scenarios, such as filing no claims, one claim, or two claims.

Tolerance for Risk

Choosing a high-deductible plan is a gamble that you won't have a car accident. If you do have an accident with a high-deductible policy, you're still covered, but you'll pay more out of pocket.

A high-deductible policy is good for those who are less likely to have a car accident or file a claim, have an emergency fund to cover repairs, need to cover a more expensive car, or are comfortable with taking the risk.

A low-deductible policy is better for those who are more likely to file a claim, own a lower-value car, or don't have savings to cover a large unexpected bill.

Comprehensive and Collision Coverage

Full coverage auto insurance usually refers to the combination of comprehensive and collision coverage. Comprehensive coverage protects your vehicle from non-driving-related incidents, such as animal collisions or damage caused by natural events. Collision coverage, on the other hand, protects your vehicle if you collide with another object.

While full coverage is not legally required by states, it is recommended or required in certain situations, such as when a vehicle is leased, financed, worth more than $4,000, or will be resold.

When choosing a deductible, it's important to consider your budget, the value of your car, your savings, and your tolerance for risk. While a higher deductible can lower your insurance rate, it also means higher out-of-pocket costs if you file a claim. Ultimately, the decision depends on your specific circumstances and preferences.

Look for insurers with good customer satisfaction ratings

When looking for cheap full-coverage auto insurance, it's important to remember that the cheapest option may not always be the best. While the cost is an important factor, you should also consider the level of service and satisfaction the company provides to its customers.

The Zebra Customer Satisfaction Survey is a great place to start. This survey gives an overview of insurance companies that deliver high levels of service and satisfaction to their customers. According to the 2022 results, USAA, Erie, and State Farm are the top three companies for auto insurance customer satisfaction.

USAA is renowned for its customer service and came in first place in the Zebra's customer satisfaction survey. However, it is only available to military members and their families. Erie, a regional insurance company serving the northeast, came in seventh place in the survey and offers affordable rates for teen drivers. State Farm, which has coverage available in every state, came in first place for claim satisfaction.

In addition to customer satisfaction ratings, you may also want to consider other factors such as the company's financial strength, the number of discounts offered, and the ease of use of their website and claims process. By considering both cost and customer satisfaction, you can make an informed decision about which insurer is right for you.

Frequently asked questions