If the cost of car insurance is draining your accounts and you want to do something about it, you do have some options. While looking around for cheap full coverage car insurance, you should keep a few factors in mind to make sure you get the best deal. Before we continue, we recommend that you read our comprehensive car insurance guide for beginners to learn everything you need to know before contacting an insurance agent or starting your car insurance search online.
What Is Full Coverage Car Insurance?
Things can get confusing for drivers taking their first steps into the world of car insurance. What does full coverage car insurance mean?
Full coverage car insurance isn’t really one policy. Rather, it’s a collection of smaller policies that cover different situations. When drivers and insurance companies speak about full coverage car insurance, they are generally talking about liability, collision, and comprehensive coverage. With all three of these coverages, drivers and their vehicles are protected from most of the unfortunate circumstances and surprises that a driver might come across on the road.
Liability Insurance
Liability insurance is the bare minimum level of policy that a driver needs to legally operate a vehicle on public roads. This basic type of insurance is there to protect other motorists and/or their property in a collision.
When it comes to auto liability insurance, understanding its coverage areas can help you choose the best policy and reduce your vehicular risks. Learn more about liability insurance and what they cover in this article.
Collision Insurance
Collision insurance helps pay for damages done to a vehicle when another vehicle hits it. In other situations, collision insurance can also helps pay for damages to the policy holder’s vehicle if the policy holder hits another vehicle or an object. The limit of collision insurance depends on how much the vehicle covered is worth.
While collision insurance is not required by state law, some lenders may require it. If you’re not sure if you need collision insurance, you can read our collision insurance guide here.
Comprehensive Insurance
Think of comprehensive insurance as the type that covers everything that collision and liability insurance doesn’t. Comprehensive insurance generally kicks in when the vehicle it covers is damaged in situations other than vehicular collisions. This can include fires, hail, tree limbs, vandalism, and so on. This article will explain what comprehensive insurance entails.
“Full” Coverage
Despite what its name might suggest, full coverage car insurance does not actually fully cover every situation. For instance, a full coverage plan doesn’t include the cost of renting replacement vehicles, roadside assistance, towing, medical payments, or uninsured motorist coverage.
That being said, not every full coverage plan is the same from company to company. A driver may be able to find a full coverage car insurance plan that does cover some situations and bills that other similar plans do not. This is one of the reasons why it’s important to compare plans and study what each of them offers to find the best deal. There is no one-size-fits-all insurance plan.
To wrap up, full coverage car insurance is what it sounds like — it insures against most damage and losses. Whether you hit another vehicle (liability), another person hits you (collision), or something off the wall happens to your car (comprehensive), some portion of your full coverage car insurance plan will likely cover it.
Something drivers should keep in mind while shopping around for policies is that sometimes they’ll see prices for only comprehensive and collision coverage plans. It’s sometimes assumed they already have liability insurance, so be sure to check with the full coverage plan to see if it has the three or just two types of insurance before getting excited about the price.
How To Get Cheap Full Coverage Car Insurance
According to ValuePenguin, the average annual cost of full coverage car insurance is $2,058 per year or $171 per month. Below are some of the lowest average monthly costs of full coverage car insurance from national companies.
- USAA: $98
- State Farm: $109
- Erie: $115
- Farm Bureau: $131
- Auto-Owners: $132
- American Family: $146
- Geico: $160
- Progressive: $170
- Nationwide: $177
- Travelers: $179
- Allstate: $196
- Farmers: $210
Due to the fact that full coverage car insurance contains several policies, it isn’t the cheapest type of insurance. Full coverage car insurance can cost much more than liability-only insurance. But for those who want the extra protection it offers, there are still some tips and tricks to keep in mind to get cheap full coverage car insurance.
Improve Your Credit Score
Drivers’ credit scores can play a vital part in deciding how much they’re going to pay for insurance, unless they’re insuring their car in California, Hawaii, or Massachusetts. If an insurance company uses credit scores to see if a drive is eligible for lower insurance plan rates, raising that credit score before signing up for it is always a good idea if it’s an option. Drivers with bad score may need to be ready to pay higher rates now until they can get their credit score higher, then revisit their plan when it comes time to renew it.
Look for Discounts
Many insurers incentivize new customers through discounts. These discounts come in many shapes and forms. One might get a discounted insurance payment for having a clean driving record. A home owner may be able to save money by bundling their home insurance with their automotive insurance. Insuring multiple cars at once can often gain you a discounted rate. Ask the company or agent you’re getting your insurance quote from to see if they offer any discounts that might apply to you.
Be a Safe Driver
As mentioned earlier, many insurance companies offer benefits to safe drivers. Drivers should try to keep their driving record clear of any accidents or insurance claims to keep the cost of their insurance low. If you have been in an accident recently, don’t fret. Your record doesn’t have to be spotless (though that would certainly help) — you just need to have had a long enough period of time since the last time you were in an accident.
Always Compare and Contrast
Since several factors influence the cost of full coverage car insurance, it can be difficult to suggest a one-size-fits-all insurance company. Different companies are better suited for different situations and locations. That’s why the best thing a driver can do to find the cheapest full coverage car insurance is to get quotes from several companies.
Shop around and collect data to be able to compare full coverage car insurance prices between companies so you can make the best decision for your needs and your budget. Be sure to note whether each quote includes liability, collision, and comprehensive, as well as what each policy’s deductible and maximum limit is.
Finding cheap full coverage car insurance may take a little research, but you will thank yourself for the extra work you put in when you’re paying for lower insurance rates.
If you’re looking for a good insurance plan from a reputable company, you can start by reading this article where we list top-rated car insurance providers.
At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.
