How to Get Cheap Full Coverage Insurance

Fran
Lucy Lazarony
January 26, 2021

Having cheap full coverage insurance is a good way to keep you and your family safe at an affordable price. Just what is full coverage insurance? Insurance agents use the term “full coverage” to refer to the combination of collision and comprehensive insurance coverages plus the liability coverage required by your state. These are the key ingredients of a full coverage insurance policy. Let’s take a look at each of these insurance coverages, how they benefit you as a driver and how to find a cheap full coverage insurance near you. But first let’s examine what cheap full coverage means and what it covers.

Is Cheap Full Coverage Insurance Worth It?

Do you need full coverage for your car? If a car is worth more than $4,000, many experts recommend keeping the cheap full coverage insurance coverage on your car. Not sure how much your car is worth? Visit Edmunds or Kelley Blue Book to learn the value of your car.

Full Coverage Protects Young Drivers

Getting cheap full coverage insurance will provide the collision coverage a young driver may need. Teens and younger drivers are more likely to have car accidents. Having that collision coverage will help pay for repairs from fender-benders and other driving scrapes a young driver may get into. Without collision coverage, damages to your car are not covered if the accident is your fault.

Full Coverage Doesn’t Cover Everything

You’ll have to pay extra for coverages such as emergency roadside assistance and car rental reimbursement and any of the other optional coverages offered by an insurance company. You’ll need to buy those coverages on your own in addition to your cheap full coverage insurance policy.

Drivers with Good Credit Get Cheap Full Coverage Insurance

If you have good credit, you will get a lower rate on your car insurance including full coverage insurance. Insurance companies look at credit items such as payments and outstanding debt. So if you pay all your bills on-time and have very little debt, you are likely to get cheap full coverage insurance.

Your Driving Record Can Deliver Cheap Full Coverage Insurance

If you have a good driving record, you will qualify for a low insurance rate and cheap full coverage insurance. Drivers with at-fault accidents and speeding tickets and moving violations pay higher rates on their insurance.

Paying in Full Will Help You Get Cheap Full Coverage Insurance

Deciding to pay in full on your policy instead of monthly payments will save you money on your car insurance premium.

How Much Is Cheap Full Coverage Insurance?

According to AAA, the average cost for full insurance coverage for a small sedan is $1,328, a medium sedan is $1,251 and a large sedan is $1,221.

For SUVs, the average cost for full insurance for a small SUV is $1,089 and for a medium SUV is $1,114.

What Are Average Collision and Comprehensive Insurance Claims?

According to the Insurance Information Institute, the average claim for collision insurance is $3,750 and the average claim for comprehensive insurance is $1,780.

Why Should I Buy Cheap Full Coverage Insurance?

If you have a brand-new car, you’ll want to protect your vehicle as much as you can. And that means signing up for insurance coverage to pay for any damages to the car.

If you drive in a lot of traffic and there’s a chance of fender benders, you would want the added protection of having cheap full coverage insurance.

If you live in an area where storms occur, such as hail storms, hurricanes and tornadoes, you’ll want the protection that your car would get from comprehensive insurance.

Older Cars May Not Need Cheap Full Coverage Insurance

The maximum payout for collision coverage and comprehensive coverage is limited by the value of the car. So if your older car has a low market value, it may not make financial sense to carry comprehensive and collision coverages any longer. So a cheap full coverage insurance policy wouldn’t be needed at all.

Understanding Collision and Comprehensive Insurance Coverages

Both Collision and Comprehensive insurance coverages help pay for damages done to your car. So if you need a little help paying for car repairs these are the insurance coverages for you. If you are financing a car, your lender may require that you carry collision and comprehensive insurance coverages. So if you just bought a car and are paying off a loan, you’ll need to add these coverages to your insurance list.

Another thing that collision and comprehensive insurance coverages have in common is they both require deductibles. A deductible is the amount you need to pay before your auto insurance company begins to pay for damages to your car or losses. Most deductibles range between $500 and $1,000. Choosing a higher deductible will help you to lower your insurance premium. And opting for a deductible of $1,000 will help you find the cheap full coverage insurance you are looking for.

Now let’s look at collision and comprehensive insurance coverages. They are very different.

Collision insurance is coverage that helps to repair or replace your car if it is damaged in an accident with another vehicle or object such as a tree, fence or guardrail or if you have been in a hit-and-run accident. Collision pays for these damages regardless of who is at fault in an accident.

Comprehensive auto insurance covers events that aren’t covered collision coverage. These events include fire, theft, vandalism, damages from weather such as a hail storm, a windstorm, a tornado and a hurricane. Because claims with comprehensive insurance aren’t typically the result of a driving mistake, there isn’t much of a rate hike after making a comprehensive insurance claim.

Liability Coverage from the State

If you ever cause a car crash, liability insurance pays for other people’s injuries and property damage up your liability limit. Most states have minimum liability limits for the drivers in their state. Liability coverage is a key component of cheap full coverage insurance.

Other Coverages in Cheap Full Coverage Insurance

Other state-mandated insurance coverages that may be included in a cheap full coverage insurance include uninsured motorist coverage and underinsured motorist coverage and Personal Injury Protection (PIP).

Uninsured motorist coverage helps pay for damages caused by a driver who doesn’t have insurance. Underinsured motorist coverage protects you in the event of an accident where the other party is at fault and doesn’t carry enough insurance.

What is PIP? Also known as no-fault insurance, this coverage pays the cost of your lost wages and medical bills up to the PIP policy limit.

You’ll pay for the auto insurance coverages mandated by your state and collision and comprehensive coverages in a cheap full coverage insurance policy.

Shop Around for Cheap Full Coverage Insurance

Looking for a good deal on cheap full coverage insurance? You could save several hundred dollars on your auto insurance premium by shopping around. To get the best deal, you’ll need to explore insurance rates from several insurance companies in your area.

Smart Financial can help you do just that. And because SmartFinancial has access to more than 200 insurance companies you are bound to find the cheap full coverage insurance you are looking for. All you have to do is answer a few simple questions to get matched with the best rate for you. So go grab your car info, like your VIN number and get started by entering your zip code below. It’s totally free.

Get a Free Auto Insurance Quote Online Now.

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