Full Coverage Auto Insurance: Best Policies And Plans

Full coverage auto insurance is a term used by insurance agents, lenders, and dealerships to describe a policy that includes certain coverages. However, it is important to note that there is no standard definition of full coverage and it is not an actual type of insurance policy. Typically, full coverage refers to a combination of liability insurance, collision insurance, and comprehensive insurance. Liability insurance covers the cost of injuries and repairs for the other party in an accident where you are at fault. Collision insurance covers damage to your vehicle if you are at fault in a collision, but not the other party's vehicle or injuries. Comprehensive insurance covers damage to your vehicle from incidents other than collisions, such as weather, theft, or fire. While full coverage does not exist as a single policy, drivers can create a comprehensive insurance package by combining different types of coverage.

Full coverage insurance requirements for a leased or financed vehicle

When it comes to leasing or financing a vehicle, full coverage auto insurance is typically required by the leasing company or lender. This is because you don't own the vehicle outright and need to protect the asset of the leasing company or lender. Full coverage insurance includes both comprehensive and collision coverage, which protect your vehicle from physical damage.

Comprehensive coverage insures your vehicle against damage caused by events outside of your control, such as weather, acts of nature, theft, vandalism, fire, and animal accidents. On the other hand, collision coverage pays for damage to your car resulting from a collision with another vehicle or object, regardless of fault.

In addition to comprehensive and collision coverage, leasing companies and lenders may also require you to carry higher bodily injury and property damage liability limits than the state minimums. Bodily injury liability covers medical expenses for other people in an accident, while property damage liability covers damage to another person's property.

It's important to note that the requirements may vary depending on the leasing company or lender, so it's always best to check with them directly to understand their specific insurance requirements.

When shopping for full coverage auto insurance for a leased or financed vehicle, it's recommended to compare quotes from multiple insurance providers to find the best rate and coverage for your needs. Some insurance companies may offer discounts for bundling policies or having a good driving record, so be sure to explore all your options.

Full coverage insurance recommendations for a vehicle worth more than $4,000

If your vehicle is worth more than $4,000, insurance experts advise purchasing full-coverage insurance. Full coverage is a generic term for a policy with comprehensive and collision coverage.

Full coverage is required for drivers of leased or financed vehicles but is encouraged for vehicles worth more than $4,000. Full coverage can cost up to double the amount of a liability-only policy.

Best Overall for Full Coverage: USAA

USAA is only available to military members and their families but is renowned for its customer service and came in first place for auto insurance in The Zebra's customer satisfaction survey. USAA also has the second-cheapest average rate for full coverage.

Best for Young Drivers: Erie

Erie is a regional insurance company that serves the northeast and is a great option if it's available to you. Erie is cheaper than many of its competitors and has a great reputation for good customer service, coming in seventh place in The Zebra's customer satisfaction survey for auto insurance.

Best for Claim Satisfaction: State Farm

State Farm offers coverage in every state and came in first place for claim satisfaction in The Zebra's customer satisfaction survey. State Farm also has local agents available to help you with your car insurance policy.

Other Options

Other cheap full-coverage insurance companies include Nationwide, Auto-Owners, Erie, and Geico.

Tips for Choosing Full-Coverage Insurance

• Look for insurers with good customer satisfaction ratings.
• Increase your deductible. Collision and comprehensive coverage each come with a deductible, an amount deducted from a claim payout. By increasing your deductible from $250 to $1,000, you can save an average of 18%, which is about $400 a year.
• Get car insurance discounts. You can get car insurance discounts by going paperless, paying your policy in full, and bundling your auto and homeowners' insurance.
• Compare quotes from multiple carriers.

Full coverage insurance recommendations for a vehicle to be resold

If you plan to resell your vehicle, it is recommended that you get full coverage insurance. Full coverage insurance is a combination of comprehensive, collision, and liability insurance. It covers damage to your car from weather events, at-fault accidents, collisions with animals, and vandalism. It also covers injuries or damage you cause to others.

Full coverage insurance is not legally required, but it is a good idea if you want extra financial protection in the event of an accident. It is also required if you have a leased or financed vehicle. The cost of full coverage insurance varies depending on factors such as your age, driving record, and the state you live in. On average, it costs around $1,766 per year, or about $147 per month.

When choosing a full-coverage insurance provider, it is important to shop around and compare quotes from multiple companies. Some of the cheapest options for full coverage insurance include:

• State Farm ($124 per month on average)
• Erie ($106 per month; only available in 12 states and Washington, D.C.)
• USAA ($100 per month; only available to military members, veterans, and their families)
• Auto-Owners ($141 per month; only available in 26 states)
• Nationwide
• Geico

Full coverage insurance considerations for young drivers

Young drivers are more likely to be involved in accidents than experienced drivers, so it is recommended that they opt for full coverage insurance. Here are some considerations for young drivers when it comes to full coverage insurance:

Cost of Full Coverage Insurance

Full coverage insurance is more expensive than liability-only insurance. The average cost of full coverage insurance is around $133 per month, but it can vary depending on the insurance company and the driver's age, driving history, and other factors. For example, the average cost of full coverage insurance for a 16-year-old driver is around $481 per month. It's important for young drivers to compare quotes from multiple insurance companies to find the most affordable option.

Insurance Company Reputation and Customer Service

When choosing an insurance company, young drivers should consider not only the cost of coverage but also the company's reputation and customer service. Look for companies with good customer satisfaction ratings and a smooth claims process. Some companies, like State Farm, are known for their reliable customer service.

Available Discounts

Young drivers should take advantage of any available discounts to help offset the cost of full coverage insurance. Many insurance companies offer discounts for good students, students away at school, driver's education, defensive driving courses, and more. It's worth asking about these discounts when getting quotes from insurance companies.

Coverage Limits and Deductibles

Young drivers should also consider their coverage limits and deductibles. While it may be tempting to choose the lowest possible coverage limits to save money, it's important to have sufficient coverage in case of an accident. Young drivers should also carefully consider their deductible, which is the amount they would have to pay out of pocket before insurance coverage kicks in. A higher deductible usually results in a lower premium, but it's important to weigh the potential savings against the risk of having to pay a higher amount in the event of a claim.

Insurance Requirements for Financed or Leased Vehicles

If a young driver is financing or leasing a vehicle, they will likely be required by the lender to carry full coverage insurance. This typically includes collision and comprehensive coverage to protect the vehicle in case of an accident or other damage.

Comparison Shopping

Finally, young drivers should remember to shop around and compare quotes from multiple insurance companies. Rates can vary significantly between companies, so it's worth getting quotes from several providers before making a decision. By comparing rates and coverage options, young drivers can find the best value for their full coverage insurance.

Full coverage insurance vs. state-minimum insurance

When it comes to auto insurance, there are two main types: full coverage and state-minimum (or liability) insurance. So, what's the difference, and which is better?

Full Coverage Insurance

Full coverage insurance is not a real insurance coverage and there is no standard definition. It typically includes liability insurance, which covers injuries and damage to others when you are at fault, as well as collision and comprehensive coverage, which cover damage to your own vehicle. Collision coverage protects your vehicle if you collide with another object, while comprehensive coverage protects your vehicle from non-driving-related incidents, such as weather damage or animal collisions. Full coverage insurance may also include other state-mandated coverages. It is important to note that full coverage does not cover everything, and it is recommended to have additional coverages such as personal injury protection and uninsured motorist coverage.

The cost of full coverage insurance varies depending on factors such as driving history, age, credit score, home address, and insurance provider. On average, full coverage insurance costs around $133 per month, but it can be much higher or lower depending on your specific situation.

State-Minimum Insurance

State-minimum insurance, also known as liability insurance, is the minimum amount of insurance that is required by state law. It covers injuries and damage to others when you are at fault in an accident, but it does not cover damage to your own vehicle. The cost of liability coverage can vary depending on your driving history and other factors. In most states, liability coverage is required by law, and even in states where it is not mandatory, it is still recommended as it can help protect your finances in the event of an accident.

Full Coverage vs. State-Minimum Insurance

Now that we understand the difference between full coverage and state-minimum insurance, which one is better? It depends on your specific situation. If you are leasing or financing your vehicle, full coverage insurance is usually required. This is because the lender wants to protect their investment in case of an accident. If you own your vehicle outright, full coverage insurance may still be a good idea, especially if your vehicle is worth more than $4,000. In this case, full coverage can give you peace of mind and protect you from unexpected costs. On the other hand, if your vehicle is old and not worth much, state-minimum insurance may be sufficient. It is important to consider the value of your vehicle and your financial situation when deciding between full coverage and state-minimum insurance.

Frequently asked questions