Full coverage car insurance is so named because it provides a broader range of coverage than what’s typically included with the basic minimum coverage required to legally drive. This type of vehicle insurance is more of an investment than basic coverage, but it can be worth it as long as you know what you’ll be getting and when to consider this option. Continue reading to learn more about full coverage car insurance and what to keep in mind.
What “Full Coverage” Car Insurance Is
Full coverage auto insurance provides coverage for many different scenarios you may encounter while behind the wheel in a vehicle covered by this type of policy. This typically includes coverage for at-fault accidents, weather-related incidents, and vandalism. It’s also common for full coverage to pay out the current value of your vehicle if it’s stolen.
Policies of this nature can vary as far as what’s specifically covered. However, it’s not unusual for additional coverage to include:
• Bodily injuries
• Property damage
• Uninsured motorist bodily injury and/or property damage
• Collision coverage
• Comprehensive coverage
When to Consider Full Coverage Auto Insurance
The minimum coverage required in most states will only cover expenses related to damage or injuries you may cause to other involved parties. That said, there are many factors to take into consideration when deciding if full coverage car insurance is worth it for you.
Full coverage is often worth considering if any of the following conditions or circumstances apply:
• Your vehicle is fairly valuable and/or new
• You normally commute or drive in heavy traffic
• You live in a high-crime area
• You live in an area where extreme weather is common
• You wouldn’t be able to easily replace your car if it were stolen
Another reason to consider full coverage auto insurance is if you have an auto loan or lease. It’s common for lenders to require collision and comprehensive coverage.
When Full Coverage May Not Be Worth It
The main reason to forego full coverage auto insurance is if you have an older car or one that’s not highly valued. With an older car, you’ll only be reimbursed for current market value with a full coverage policy. Therefore, if your older vehicle has a low value now due to its age and condition, you would likely receive a low payout.
Also, be aware that full coverage policies may not include certain types of coverage that could be more beneficial to you. For instance, gap insurance and medical payments insurance cover expenses that typically aren’t covered by full coverage policies. If this is the type of coverage you would likely benefit from more, it may be better to work with an agent to choose what you need.
Cost for Full Coverage Car Insurance
According to NerdWallet, the average cost for full coverage vehicle insurance is around $1,500 per year. Specific rates vary based on factors such as your driving record.
Whether you need reliable, affordable auto coverage or dependable business, homeowners, or renters insurance, turn to Altra Insurance Services. For high-quality coverage and outstanding customer service, reach out to our experienced agents. Give us a call today at (800) 719-9972 to learn how you can save money on all your insurance needs.