Comprehensive coverage auto insurance is an insurance policy that includes liability coverage plus comprehensive and collision insurance, along with any other coverage required by state law. Full coverage auto insurance provides protection against auto accidents and non-accident related damages, covering the policyholder regardless of fault.
what does full coverage car insurance cover?
Full coverage auto insurance covers the policyholder and their vehicle against accidents or other events that cause damage, regardless of fault. Full coverage auto insurance also covers other people’s injuries and property damage when the policyholder is at fault.
what are the common components of full auto insurance coverage?
learn more about what full coverage auto insurance covers.
cost of full coverage car insurance
The average cost of full coverage auto insurance is $1,997 per year. for comparison, state minimum coverage costs an average of $720 a year.
Costs vary by state and carrier, as well as coverage limits and deductibles. In addition, a driver’s premium depends on his or her personal characteristics, including his or her driving record, age, and zip code.
total cost of coverage by state
Costs reflect the average of a series of quotes compiled by Quadrant Information Services for a 45-year-old male with a clean driving record and good credit. individual premiums will be different.
Learn more about how much full coverage auto insurance costs.
cheapest full coverage car insurance companies
- insurance: $129 per month
- geico: $140 per month
- mercury: $160 per month
- united states: $167 per month
- progressive: $168 per month
- 21st century: $171 per month
- yyyy: $177 per month
- statewide: $194 per month
- travellers: $199 per month
- state farm: $218 per month
To find the cheapest full coverage auto insurance, you’ll need to get multiple quotes from different insurers to identify the lowest rate for the coverage you need. premiums vary based on several factors, including your state and your driving record.
Learn more about the cheapest full coverage auto insurance.
Is full coverage worth it?
Comprehensive coverage is always worth it for leased or financed cars. Plus, if you can’t afford to buy a new car entirely out of pocket, or if the cost of full coverage is less than 10% of your car’s value, full coverage is definitely worth it. the average new car costs more than $40,000 and that doesn’t include all the costs associated with an accident, plus taxes and fees.
On the other hand, if you can afford to replace your car on your own, don’t drive very often, or your car isn’t worth much, you may be able to skip full coverage insurance.
Learn more about deciding if comprehensive coverage is worth it for you.
5 tips for buying full coverage car insurance
1. look for coverage
When shopping for full coverage auto insurance, the key to finding the best deal is to compare quotes from multiple insurers before purchasing a policy. Even after you have coverage, it’s a good idea to shop around every 6 to 12 months and consider changing insurers if you find a better price elsewhere.
2. check for discounts
In addition to comparing quotes, you should also compare discounts to see what opportunities insurers give you to save. For example, most insurance companies offer a good driver’s discount for policyholders who go a certain period of time without an accident or traffic violation. You can also get discounts for things related to your policy, like having more than one type of insurance with the company or paying for coverage in full up front.
3. carefully select your deductibles
When you buy a full coverage policy, you’ll select amounts for your comprehensive and collision deductibles. The higher your deductibles, the lower your premium, so choosing high amounts can help you save in the long run. however, you should still select deductible amounts that you can pay if your vehicle sustains unexpected damage.
4. understand the different definitions of full coverage
Comprehensive coverage is not an official type of auto insurance and definitions differ. Some people define comprehensive coverage as any policy that includes liability, collision, and comprehensive insurance, while others describe comprehensive auto insurance as a policy that has the state minimum coverage plus any insurance required by a lender or lessor. Similarly, full coverage auto insurance can be defined as a policy that has more than the minimum liability coverage, or simply as an insurance policy that will take care of everything in the event of an accident.
Understanding the different possible definitions will help you determine what coverage you want from an insurance policy and the different ways others sometimes think about full coverage.
5. know that a financed or leased car may require full coverage
If you have a financed or leased car, your lender or lessor may require you to have full coverage insurance. your contract may even require you to have more types of coverage, like gap insurance.
If you don’t maintain full coverage on your financed or leased car, you risk having your car repossessed or having to pay for more expensive insurance chosen by your financier or lessor.
video: how to understand full coverage car insurance
ask the experts
To learn more about full coverage auto insurance, Wallethub posed the following questions to a panel of experts. Click on the experts below to see their biographies and answers.
1. When should drivers consider getting full coverage auto insurance? 2. When should drivers consider dropping full coverage on their auto insurance policy? 3. What do you think is the biggest misconception people have about full coverage auto insurance?