krisanapong detraphiphatGetty Images
Understanding how much full coverage car insurance is and what it covers is not always easy. When it comes to full coverage car insurance, there are many factors that play into whether or not you need to carry this type of policy and how much it will cost. If you lease or have a loan on your vehicle, the actual owner will dictate the amount of coverage you are required to carry. On the other hand, if you own your vehicle outright, you can decide what amount of coverage you need. However, most states have their own required minimums, which generally include the following insurance categories:
- Bodily injury liability
- Property damage liability
- Uninsured or underinsured motorist
- Personal injury protection
These minimums will ensure that drivers are covered in case of a collision while out on the road. Liability coverage is the term used for only carrying the minimum amount of insurance.
What Is Full Coverage Car Insurance?
Having the proper amount of car insurance coverage is important. By obtaining a full coverage policy, you will be providing yourself with both comprehensive and collision coverage says The Zebra. With comprehensive insurance, your policy will help with costs of damages that are not related to an accident involving another driver, such as hitting a deer or damages from weather-related incidences, among others. Collision coverage will pay for damages to your own vehicle, even when you are at fault. This coverage is in addition to liability insurance, which pays for the damages caused to other people and their property.
Sometimes, full coverage will also include roadside assistance and rental car coverage. These are both nice to have, especially when you find yourself in need of emergency assistance for a flat tire, a vehicle-related issue you experience while out on the road, or for rental car expenses should your car need to be in a repair shop for a few days after an accident has occurred.
Full coverage is not necessarily a specific type of insurance, but rather an inclusion of various types of coverage you can combine to form a policy that encompasses all the coverage you need. Maintaining full coverage car insurance is required if you lease or have a loan on your vehicle, but it is also a good idea to have for a variety of other reasons says The Zebra. These include:
- Regularly commuting or driving in heavy traffic
- Living in an area where car theft is common
- Your car is expensive
- Extreme weather or hitting animals is a regular occurrence
Keep these things in mind when deciding what type of car insurance coverage you need. Also, if your vehicle is worth more than $ 4000, you’ll probably want to have full coverage, otherwise, this type of coverage isn’t worth the money you will spend on your monthly premium.
What Is Not Covered Under a Full Coverage Insurance Policy?
Although a full coverage car insurance policy will take care of many of the expenses from damages caused by an accident, there are a few things that will not be covered.
- Uninsured or underinsured motorists
- Personal injury protection
- Gap insurance
- Custom coverage for special parts
In some states, uninsured motorist and personal injury protection are both required to be covered under a full coverage insurance policy, but this is not always the case. Make sure you know what the requirements are in your state to ensure you have the proper coverage.
Uninsured or underinsured motorists are those that are not carrying the right amount of insurance to cover damages. Unfortunately, they are out there, so it’s a good idea to carry this type of coverage to protect yourself. Personal injury protection is a good addition to your insurance policy to help curb the cost of any medical expenses you incur from an accident, as they can pile up quickly. Gap insurance will cover the amount you owe on your vehicle if it’s totaled while you’re still paying off your loan.
If you’ve added custom parts to your vehicle, such as special tires or suspension enhancements, you may want to get coverage for those special parts because they are not normally covered under a full coverage policy.
How Much Is Full Coverage Car Insurance?
Finding out how much a full coverage car insurance policy will cost you may prove challenging. The reason for this is that there are many factors that contribute to the rate you will be charged for car insurance. ValuePenguin shares some of them with us:
- Age
- Credit score
- Driving history
- Marital status
- Zip code
All of this information will play a part in how much an insurance provider will charge you for full coverage car insurance. Additionally, the type of car you drive will affect your insurance rate. You will likely be charged a higher rate if you drive one of the following vehicles:
- Sports car
- Luxury car
- Electric vehicle
- A type of vehicle that is statistically stolen often
According to Nerdwallet, another determining factor is the insurance provider you use. On average, State Farm will be the least expensive with a rate of $ 111 a month, while Liberty Mutual will be the most expensive with an average rate of $ 229 a month. Keep in mind these are only averages, and your cost will be affected by the above-mentioned information.
Nerdwallet also says that the state you live in also plays a big part in the amount a full coverage policy will cost. Some of the most expensive states include Michigan, with an average price of $ 4079; Louisiana that averages $ 3678; and New York, which averages $ 2647. On the least expensive spectrum, you’ll find Maine at $ 897, North Carolina at $ 978, and Idaho that averages $ 990. These are all per-year prices.
Regardless of where you live or the type of vehicle you drive, having the right insurance will pay off in the event you’re involved in an accident. Decide what type of coverage you need and contact an insurance provider to get more information on how much it will cost and exactly what is going to be covered.
Sources:
https://www.nerdwallet.com/blog/insurance/car-insurance-basics/cheap-full-coverage-insurance/
https://www.nerdwallet.com/blog/insurance/car-insurance-basics/how-much-is-car-insurance/
https://www.thezebra.com/auto-insurance/full-coverage-car-insurance-state-minimum/
https://www.valuepenguin.com/average-cost-of-insurance
https://www.thezebra.com/auto-insurance/best-full-coverage-auto-insurance/
https://www.caranddriver.com/news/a27453134/rain-car-accident-risk-higher/
