A full coverage car insurance policy provides financial protection during an accident or damage to your vehicle due to theft, vandalism or extreme weather conditions.
Under certain circumstances, this coverage package may be required even though it is not mandated by law. While it can help in avoiding paying out-of-pocket for common car insurance claims, it may not be the right option for everyone. If you’re considering such a policy, it’s important to understand what exactly is full coverage car insurance and what features fall under it. In this blog, Beem, America’s first Al-powered Smart Wallet App, will help you understand what a full coverage auto insurance policy covers.
What Is Full Coverage Car Insurance?
The basic idea of “full coverage” car insurance refers to a policy where you get total protection for your vehicle. A full coverage auto insurance will typically cover the damage in maximum situations with a combination of coverage of liability, collision and comprehensive. It will also consist of uninsured motorists and personal injury protection coverage (PIP) in certain cases.
While there is no one car insurance policy that fits all, every coverage is customized to fit your needs. Your version of full coverage car insurance will be designed depending on your situation.
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What Does Full Coverage Car Insurance Cover?
Full coverage car insurance policies vary in structure and availability depending on an individual’s requirements. However, it generally covers the following:
Car Insurance Coverage
It may be a requirement in some states to have certain types of auto insurance. It is possible to choose higher limits to ensure that your policy meets your needs, even though you must have the minimum limits.
Uninsured/Underinsured Motorist Coverage
A policy that covers uninsured motorists protects in case of an accident with someone who does not have liability insurance. An underinsured motorist policy can protect you from financial ruin if you are involved in an accident with someone whose insurance is insufficient to cover your damages.
If you are covered for these types of losses, you may be able to receive compensation for your injuries or property damage. The coverage requirements and options may vary from state to state.
Also Read: Difference between Full Coverage Car Insurance and Liability Car Insurance
Medical Insurance Benefits
A medical payment or personal injury protection (PIP) policy covers your medical expenses, those of your family and the passengers in the event of an accident.
Besides lost wages, PIP also covers house cleaning costs, funeral expenses and expenses for services you cannot perform while injured.
There are different laws governing who and what is covered in each state. You can purchase additional coverages if you want to increase your protection. To protect your lienholder’s interest, your policy may need collision and comprehensive coverage if you are financing or leasing your vehicle.
Collision Coverage
It helps provide coverage for repair to your car in case of an accident by another vehicle or object. No matter you are at fault or not, collision coverage can be used in unprecedented circumstances.
Comprehensive Coverage
Vehicle damage due to theft or vandalism is covered by comprehensive insurance. A flood insurance policy can also cover losses resulting from hail, floods and animal strikes.
Adding additional coverages to your auto insurance policy can make your approach more personalized. During a covered loss, you may receive rental reimbursement to help with rental expenses. Emergency road service can provide tow, tire changes, jump starts, and other roadside assistance.
Who Needs Full Coverage Insurance?
You may require a full coverage policy if you have financed your vehicle and still owe money on it. It is also possible that you will need a full coverage policy if you lease your vehicle. If you don’t repay your loan or end your lease agreement, your lender or lessor technically owns your car. Therefore, they have a financial stake in your vehicle. Thus, a full coverage policy ensures that they’ll get paid if the vehicle is damaged before your loan is repaid or you return it.
You should carefully read your car contract to determine if you need full coverage and, if so, how much coverage you need.
It is optional to purchase full coverage car insurance beyond that. A full coverage policy is worth considering if being at fault in a car accident would destroy your family’s finances. Over time, the extra cost of your insurance may outweigh the cost of repairs or replacements.
How To Apply For Full Coverage Car Insurance?
No matter what car insurance policy you choose, follow these simple tricks to apply for full coverage:
- Shop around for car insurance quotes to get the best policy. Ensure to compare the quotes that include the different coverage types and limits. Comparison in policies can save you hundreds of dollars.
- Consider higher deductibles to save money on your policies. Collision and comprehensive insurance, for instance, have deductible options ranging from $500 to $1,000.
- Maintain a good credit score to get the best deals possible. Improving your credit history will enhance your chances of getting credit-based insurance scores.
- Remember to take advantage of discounts by combing multiple policies and insuring more than one car in your policy.
State-By-State Cost Of Full Coverage Auto Insurance
The price of full coverage car insurance varies from state to state. Below is a table comparing average rates for minimum and full coverage car insurance in every state.
| State | Average full coverage car insurance cost per year | Cheapest Insurance Company | Average cost per year from cheapest company |
| Alabama | $1,809 | Travelers | $1,176 |
| Alaska | $2,323 | State Farm | $1,699 |
| Arizona | $1,696 | Root | $876 |
| Arkansas | $1,961 | Nationwide | $1,357 |
| California | $2,475 | Wawanesa | $1,470 |
| Colorado | $2,489 | Colorado Farm Bureau | $1,531 |
| Connecticut | $1,730 | Travelers | $1,399 |
| Delaware | $2,431 | Travelers | $1,525 |
| Florida | $4,326 | Geico | $2,771 |
| Georgia | $2,181 | Auto-Owners | $1,439 |
| Hawaii | $1,633 | State Farm | $1,207 |
| Idaho | $1,021 | American National | $422 |
| Illinois | $2,345 | Mercury | $1,388 |
| Indiana | $1,454 | Pekin | $808 |
| Iowa | $1,238 | Hastings Mutual | $604 |
| Kansas | $1,693 | Geico | $1,022 |
| Kentucky | $1,979 | Auto-Owners | $1,406 |
| Louisiana | $3,629 | Geico | $2,484 |
| Maine | $1,216 | Concord Group | $852 |
| Maryland | $3,368 | Travelers | $1,930 |
| Massachusetts | $2,333 | State Farm | $1,283 |
| Michigan | $2,995 | Secura | $988 |
| Minnesota | $2,360 | American Family | $1,597 |
| Mississippi | $1,704 | Direct General | $1,002 |
| Missouri | $2,323 | State Farm | $1,699 |
| Montana | $1,770 | Progressive | $1,234 |
| Nebraska | $1,558 | Geico | $898 |
| Nevada | $3,342 | Geico | $1,776 |
| New Hampshire | $1,411 | MMG | $828 |
| New Jersey | $2,240 | NJM | $1,370 |
| New Mexico | $2,104 | Nationwide | $1,370 |
| New York | $4,769 | NYCM Insurance | $2,986 |
| North Carolina | $1,307 | North Carolina Farm Bureau | $930 |
| North Dakota | $1,319 | Nodak Mutual | $748 |
| Ohio | $1,133 | Hastings Mutual | $512 |
| Oklahoma | $2,291 | Oklahoma Farmers Union | $1,686 |
| Oregon | $1,459 | QBE | $922 |
| Pennsylvania | $3,600 | Travelers | $1,916 |
| Rhode Island | $2,715 | State Farm | $1,233 |
| South Carolina | $2,387 | Travelers | $1,472 |
| South Dakota | $1,821 | Allied | $1,148 |
| Tennessee | $1,720 | Penn National | $1,048 |
| Texas | $2,938 | Geico | $1,861 |
| Utah | $1,994 | Geico | $1,230 |
| Vermont | $1,037 | Geico | $660 |
| Virginia | $1,511 | Penn National | $944 |
| Washington | $1,829 | Pemco | $1,129 |
| West Virginia | $1,688 | Nationwide | $1,196 |
| Wisconsin | $1,905 | Secura | $1,006 |
| Wyoming | $1,341 | American National | $546 |
Liability Vs Full Coverage Insurance
An accident resulting in bodily injury or damage to another driver, vehicle, or passenger is covered by liability insurance if you were at fault. A liability-only policy will cover other driver’s expenses, including medical bills and car repairs and not your costs. However, when it comes to full coverage, it covers a wide array of factors.
Full coverage includes other types, such as collision insurance, comprehensive coverage, medical payments and personal injury protection.
Liability insurance is required in most states, and the minimum coverage requirements vary from state to state. A loan agreement often requires drivers to carry full coverage, even though no law requires it. Drivers who lease a vehicle may experience the same problem.
Car insurance quotes may vary from company to company, so it is essential to understand if you must have full coverage.
Conclusion
In the event of a significant crash, collision or incident, a full coverage car insurance policy should provide enough protection to cover all your assets. Full coverage insurance is, of course, a financial decision that has both advantages and disadvantages.
