What is Covered by Full Coverage Auto Insurance?
Full coverage auto insurance is an insurance policy that provides the policyholder with more comprehensive coverage than a standard liability policy. This type of policy usually includes liability coverage for bodily injury and property damage, as well as coverage for medical payments, uninsured/underinsured motorist coverage, and collision and comprehensive coverage.
Liability coverage pays for damages to another person or property that you are legally responsible for. This type of coverage is typically required by law in most states. Medical payments coverage pays for medical expenses for you and your passengers if you are involved in an accident. Uninsured/underinsured motorist coverage pays for damages to you and your vehicle if you are involved in an accident with a driver who does not have insurance or does not have enough insurance to cover the damages.
Collision coverage pays for damages to your vehicle if you are involved in an accident with another vehicle or object. Comprehensive coverage pays for damages to your vehicle caused by events other than a collision, such as theft, fire, or vandalism.
Full coverage auto insurance provides the policyholder with the most comprehensive coverage available. It is important to understand the coverage provided by your policy and to make sure that you have the coverage that is right for you. If you’re thinking that it might be okay to drive without insurance all together, well… this article suggests that it’s not a great idea. Our agents will explain your policy in detail and help you understand. Just ask!
Factors that Affect Full Coverage Auto Insurance Rates
Auto insurance rates can vary widely depending on a number of factors. When it comes to full coverage auto insurance, there are several factors that insurers take into consideration when calculating rates. Here are some of the most common factors:
- Driving record: Your driving record is one of the most important factors that insurers look at when determining your auto insurance rates. If you have a history of accidents or traffic violations, you may be considered a higher risk and may pay more for coverage.
- Age and gender: Younger drivers and male drivers tend to pay more for auto insurance than older drivers and female drivers. This is because younger and male drivers are statistically more likely to be involved in accidents.
- Location: Where you live can also affect your auto insurance rates. If you live in an area with high crime rates or lots of traffic congestion, you may pay more for coverage.
- Type of vehicle: The type of vehicle you drive can also affect your auto insurance rates. Cars that are expensive to repair or replace, or that have high theft rates, will typically cost more to insure.
- Credit score: In many states, insurers are allowed to use your credit score as a factor when determining your auto insurance rates. Drivers with poor credit scores may pay more for coverage than those with good credit scores.
It’s important to keep in mind that not all insurers will weigh these factors equally, so it’s always a good idea to shop around and compare quotes from multiple providers before choosing a policy. For more ideas on how to keep your premium low, check out this article.
Alternatives to Full Coverage Auto Insurance
While full coverage auto insurance provides the most comprehensive coverage, it can also be expensive. For drivers who are looking for a more affordable option, there are several alternatives to consider:
- Liability only coverage: Liability-only coverage is the minimum amount of insurance required by law in most states. This type of policy only covers damages that you are legally responsible for in an accident. While liability-only coverage is less expensive than full coverage, it also provides less protection.
- Collision coverage only: If you have an older vehicle that is not worth much, you may want to consider dropping comprehensive coverage and keeping only collision coverage. Collision coverage will pay for damages to your vehicle if you are involved in an accident with another vehicle or object.
- Usage-based insurance: Usage-based insurance is a newer type of auto insurance that uses telematics technology to track your driving habits. Your rates are based on how much you drive, how fast you drive, and other factors. Drivers who have good driving habits can save money with usage-based insurance.
- Higher deductibles: Another way to lower your auto insurance rates is to choose a higher deductible. A deductible is the amount that you have to pay out of pocket before your insurance kicks in. Choosing a higher deductible can lower your monthly premiums but also means that you will have to pay more out of pocket if you get into an accident.
It’s important to remember that while these alternatives may be less expensive than full coverage auto insurance, they also provide less protection. Before making any changes to your policy, make sure you understand the risks involved and choose the option that best fits your needs and budget. At Insurance Service Center of Corbin and London Insurance Agency, we always recommend full coverage automobile policies. If you have any questions, please feel free to reach out or come visit.