Everything You Need to Know About Full Coverage Car Insurance

Lucy Lazarony January 27, 2021

Full coverage car insurance is a great way to give peace of mind and insurance protection to your family. With comprehensive and collision coverages, your car is covered for things like weather and theft and vandalism in addition to repairs for your car if you should be in an accident. Full coverage car insurance also includes the liability standards set for the drivers in your state. And it may even include other state-required insurance coverages such as uninsured motorist coverage and underinsured motorist coverage and personal injury protection (PIP) coverage. That’s a whole lot of auto insurance coverage and that’s why it is called full coverage car insurance. Let’s take a closer look at full coverage car insurance.

Full Coverage Car Insurance Covers More Situations

Between comprehensive and collision coverages you are covered for a whole bunch of accidents and events. Collision insurance helps to repair your car if it is damaged in an accident with another car or object such as a tree, fence or guardrail. Collision also pays for damages to your car if you are a victim of a hit-and-run accident. Comprehensive insurance covers fire, theft, vandalism and damages from weather such as a windstorm, a hailstorm, a hurricane and a tornado. Those are a lot of events and scenarios that are covered by full coverage car insurance.

And don’t forget about liability coverage. If you ever cause a car crash, liability insurance pays for other people’s injuries and property damage up to your liability limit. Liability insurance also pays for your legal defense if you’re sued for an accident. Liability coverage is included in full coverage car insurance as well.

Full Coverage Car Insurance Is More Expensive but May Save You Money in the Long-Run

There is a lot included in full coverage car insurance. You’ve got collision coverage, comprehensive coverage, the liability coverage required by your state and any other state-required car insurance coverages. They all cost money and that is why the cost of full coverage car insurance can really add up.

Find Affordable Car Insurance Coverage

On the flipside, it may cost you much more than a few hundred dollars if you’re in an accident without full coverage car insurance. Repairs are expensive, especially on newer cars. It may cost you thousands out-of-pocket versus hundreds per year in insurance. Read more to see what we mean.

Why Do You Need Full Coverage Car Insurance?

If you have a new car or a very expensive car, you’ll want to invest in full coverage car insurance. Your car will be protected in an accident and in other scenarios including theft and vandalism. You’ll also want to be covered for repairs if you’re at fault for an accident. Liability coverage only pays the other guy.

If you are financing your car, your lender may require that you carry collision and comprehensive insurance coverages. These two types of insurance in addition to liability insurance give you full coverage car insurance.

If you aren’t able to pay to repair your car if it is damaged, you need the protection of full coverage car insurance. This one is about peace of mind and practicality. If you can’t afford to fix a car on your own, better invest in some insurance that covers car repairs from accidents and damages.

If you live somewhere there is a high rate of auto theft, it is a good idea to protect your car from auto theft with full coverage car insurance. Comprehensive car insurance, included with full coverage car insurance, covers both theft and vandalism.

Lower the Cost of Full Coverage Car Insurance With Higher Deductibles

A deductible is the amount you need to pay before your auto company begins to pay for damages to your car or losses. Both collision insurance and comprehensive insurance require deductibles. Choosing a higher deductible will help to lower your car insurance premium and make that full coverage car insurance much less expensive. So rather than opting for $500 deductible, choose a $1,000 deductible and you’ll save money on your full coverage car insurance.

How Much Does Full Coverage Car Insurance Cost?

The average full coverage car insurance policy costs about $1,134 per year, according to the National Association of Insurance Commissioners (NAIC). To lower the cost further, considering boosting your deductibles.

The average cost for collision coverage is $363 per year and the average cost for comprehensive insurance is $160 per year, according to the NAIC. Nearly four out of five drivers purchase collision and comprehensive coverages for their vehicles, according to the Insurance Information Institute.

Other Insurance Coverages Included in Full Coverage Car Insurance

Any state-mandated insurance coverage is going to be included in a full coverage car insurance policy. These policies include uninsured motorist coverage and underinsurance 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. Many states require drivers to carry uninsured and underinsured motorist coverages.

Personal injury protection also is known as no-fault insurance. This coverage pays the cost of lost wages and medical bills up to the policy’s limit. No fault insurance will pay these expenses regardless of who is responsible for the accident. Some states require drivers to carry personal injury protection insurance.

Shopping Around for Full Coverage Car Insurance

To get the best price on full coverage car insurance you’ll need to shop around and compare the prices of several different insurance providers. You’ll want to look at the offerings of the biggest insurance companies but you’ll also want to check out what’s available from small, regional insurance providers. Doing so could save you hundreds of dollars a year on your full coverage car insurance.

Need a hand with all this shopping around? That is where SmartFinancial comes in. With SmartFinancial’s help you’ll be comparing insurance quotes from insurance companies in your area in no time. And because SmartFinancial has access to more than 200 insurance companies you’re bound to find full coverage car insurance at the low price that you want.

Get a Free Auto Insurance Quote Online Now.