Is it worth getting full coverage auto insurance? This term defines a combination of coverage options that may protect your vehicle in most situations. 

Of course, such solid protection can be rather expensive. The cost of full coverage is higher compared to liability coverage, which just pays for damage you cause to others and injuries. 

In this article, we are going to give you some insight into what this type of insurance covers, when it’s worth getting, and how you may save on the rates.

What Does Full Coverage Auto Insurance Cover?

The law doesn’t require you to purchase full coverage auto insurance. However, there are situations when it may be worth investing in it. 

It provides coverage for many occasions, including an at-fault accident, weather damage, vandalism, or hitting an animal. 

In case your vehicle is stolen, full coverage will also pay out the present value of your auto. Similarly, when you want to get emergency money, you may either take out a lending option, use your credit card, or tap your family. 

Here are the circumstances which make it a wise decision to get full coverage and what it actually covers:

  • Property damage liability. It pays for repair expenses for property a driver has damaged in a car accident. This coverage is often demanded to have.
  • Bodily injury liability. It pays for medical expenditures due to deaths or injuries from a car accident a driver caused. This coverage is generally demanded to have.
  • Uninsured motorist bodily injury liability. It pays for medical needs after a car accident with an uninsured driver. This coverage is demanded on all policies in 20 states.
  • Collision coverage. It pays for repair expenses to your vehicle in case you hit an object, such as a telephone pole or a tree, or crash with another auto. This coverage may be demanded by a lease or an auto loan.
  • Uninsured motorist property damage coverage. It pays for repair expenses after a car accident with an uninsured driver. This coverage is demanded on all policies in 7 states.
  • Comprehensive coverage. It pays for repair needs from situations out of your control, such as vandalism, theft, weather conditions, or hitting an animal on the road. This coverage may be demanded by a lease or an auto loan.

Should You Get Full Coverage?

Do you have doubts concerning the common limits you may purchase? Review this How Much Insurance Do I Need worksheet to understand what coverage you want to get and the limits for each type of coverage. 

Getting full coverage makes sense if you want to have enough insurance to protect you in case of a collision, a major auto crash, or an incident. 

Each financial option has advantages and downsides. Here is what you should consider.

Benefits:

  • Protects the driver if he/she is in a car accident and the at-fault driver is uninsured
  • Helps the driver meet creditor or state demands
  • Can cover medical costs of the driver if he/she is injured in an accident
  • Can cover non-accident-related expenses such as vandalism, damages, or theft.

Drawbacks:

  • Costs more compared to basic liability coverage
  • Won’t provide coverage in case the driver utilizes the vehicle for commercial work
  • Does not cover regular wear and tear on the auto.

How to Fill Out an Application

Basic information is needed to provide to the auto insurance company so that it decides whether it will insure the individual and for what amount. 

The person needs to offer the following data:

  • How many miles does he/she drive annually
  • How he/she utilizes the auto, such as for family trips, or business
  • The sum he/she paid for the auto
  • The models, years, as well as auto identification numbers for all autos in the family
  • How long he/she has been driving
  • The insurance demands if he/she has a lease or loan
  • A Motor Vehicle Report from the DMV – this official paper can also be ordered as it states the record of the driver’s traffic violations, accidents, as well as suspended licenses
  • The driving record for each driver in the family includes insurance claims, accidents, and tickets for moving violations.

Experts recommend drivers not sign any papers until they take enough time to read through the application, form, or blank they are given. 

You have the right to request copies of all the papers and documents for your records. 

Do not sign any documents and blank forms until that, and get your copies before you leave the insurance company.

Ways to Save on Full Coverage Auto Insurance

Speaking of the market share of the personal auto insurance sector in the USA from 1995 to 2017 by distribution channel, the Statista statistic presents that the market share of regional independent agents equaled 24 percent. 

Market share of the personal auto insurance sector in the United States from 1995 to 2017 by distribution channel

A typically experienced driver with a decent credit rating will need to pay around $133 per month or $1,592 annually for full coverage car insurance these days. 

Are there options to save on this type of insurance? Yes, here is what you can do.

  • Search for discounts. The easiest option is to call your insurance company and ask what they can offer to boost your savings. You may get various discounts for things like getting a new vehicle or increasing your credit score.
  • Shop around. Another useful tactic is to take some time and do your own research. Compare the insurance rates of several service providers to select the cheapest option.
  • Increase your deductible. If you consider raising the deductible, your auto insurance bill may reduce as it will lower the total cost of the insurance policy.
  • Boost your credit. You already know how important it is to have a good credit score. In order to qualify for cheaper rates, you need to improve your credit history.
  • Avoid infractions. If you have DUIs, accidents, or speeding tickets on your record, they may remain there for several years and prevent you from getting the most affordable rates.

The Bottom Line

Full coverage insurance includes a combination of collision, liability, and comprehensive policies. It offers enough coverage to protect your vehicle in many situations. 

Make sure you read the contract and understand all the nuances before you sign the papers. You may find coverage exclusions there. 

Full coverage can be rather expensive, but the exact sum depends on several factors, such as the driver’s credit history, location, age, and driving record.