Cheap Comprehensive Car Insurance

If you’re searching for cheap comprehensive auto insurance, there are a few things you should know before deciding whether or not this type of policy is right for you. This begins with understanding what full coverage auto insurance is.

What is Full Coverage Auto Insurance and Why Do You Need It?

While the term “full coverage” implies that everything is covered, this isn’t always the case. Typically, “full coverage” policies include liability insurance, as well as comprehensive and collision insurance. However, you should know that only specific situations are covered.

Unless you are still paying on an auto loan and your lender requires that you purchase full coverage car insurance, collision and comprehensive are usually optional. Some insurers do need that you have comprehensive to add collision.

There are some situations where collision and comprehensive coverage is a great idea, even if your vehicle is paid off. For example if:

• Your car is expensive, new, or a classic.

• You live somewhere, that is known for extreme weather, a high risk of collisions with animals, or high rates of car theft.

• You often drive in heavy, congested traffic.

What Does Full Coverage Insurance Cover?

First, you need to understand state insurance laws. Many states only require drivers to purchase a small amount of auto liability insurance. If you are found responsible for an accident, this coverage pays for the treatment of other person’s injuries and the cost of their property repairs. Your injuries and damages are not covered.

On the other hand, collision coverage pays for vehicle repairs when you crash into another car or run into something, like a telephone pole. Comprehensive coverage will pay to repair or replace your vehicle if it is damaged by a specific cause, not related to a vehicle crash. This includes fires, hitting an animal, weather events like flooding, or falling objects. It also pays if your car is stolen.

Keep in mind that comprehensive and collision coverage is not the same as liability coverage. This type of coverage will only reimburse you for the value of your car at the time it is damaged. Liability pays out a specific amount, which is usually more than the car’s value.

All coverages usually have a deductible. This is how much your insurer will deduct from a claim payment. This is the amount you will pay out-of-pocket. Deductibles are generally around $500 to $1,000. If you want to lower your rates, get a higher deductible. The higher it is, the cheaper your premiums will be.

Why You Might Not Need Full Coverage?

As your vehicle ages, its value decreases. In this case, the cost of full coverage insurance may not be worth it. Here’s an example. Let’s say your car is worth $2,200 and you’ll have to pay $700 a year for collision and comprehensive coverage. If your deductible is $1,000, you’ll only receive $500 more than you paid for the coverage. If something happens to your car that is worth more than $7,000, then it may be worth it. However, for really cheap vehicles, you’re essentially throwing away money.

Even if you do have full coverage, you may need additional policy options, such as:

• Towing and labor service
  
• Medical payments insurance
  
• Uninsured motorist coverage

Reasons You May Want Comprehensive Coverage

Comprehensive coverage gives you added protection and peace of mind that you won’t be responsible for pricey repairs if an accident occurs. Instead, you’ll only be responsible for your compulsory and voluntary excess.

Comprehensive ins can be used to file a claim when an accident is determined to be your fault. It can also be used when fault cannot be proven, such as when you go back to your vehicle after a movie and find that someone has hit it and driven away. If you don’t have full coverage, you will have to pay for the repairs out of your own pocket. Even worse, if the car is declared a total loss, you’ll have to purchase a new car on your own. This type of policy makes sense for expensive, newer automobiles.

The Price of Full Coverage Insurance Plans

How much you will pay for comprehensive and collision coverage depends on several factors. They include:

• Your car’s value
• Where you live and drive
• Your driving history
• The deductible amount you select
• Your Credit
• Your Age

In the end, you may end up paying anywhere from $600 to over $2,000 a year for your coverage.

Discounts That Could Save You Money

There are several discounts you can get. These include:

Good Driver Discount:

This is offered to anyone with a clean driving record and usually ranges from 10 to 25 percent. In most cases, this discount applies to the licensed person who has had a clean driving record (no accidents or tickets) for at least 3-5 years.

Driver Training Discount:

Some companies do offer a small discount (around 5 to 10%) if you complete a driver’s training course. Others do not if it is required during the licensing process.

Good Student Discount: 

If you have a child that is in high school or college and has maintained a certain GPA or ranking, some companies will give you a discount ranging from 5 to 25%. Usually, they will need a GPA of 3.0 or higher and to rank in the top 20 percent of their class.

New Driver Discount: 

Speaking of children, some companies offer a new driver discount for teens who complete certain novice driver courses. For example, Liberty Mutual has TeenSMART, while Farmers has a YES Program.

Student Away Discount:

If you have a teen who goes to a college over 100 miles from home and is without a car, you may get a discount on your insurance. This can range from 5 to 35 percent.

Low Mileage Discount:

Typically, this discount only applies to cars that are driven 10,000 miles or less each year. The lower the amount of miles you drive, the higher the discount.

Multi-Vehicle Discount:

If you have more than one vehicle on your policy, you should be eligible for a multi-vehicle discount.

Family Plan Discount:

If your family includes unmarried adults 21 or older who still live at home, your insurer may offer a discount. Others may offer a discount to adults who take out their own insurance with their parent’s insurer.

Get Cheap Full Coverage Auto Insurance Online

The best place to find cheap comprehensive car insurance is online. Comparing rates is fast and easy. It only takes about five minutes to compare up to 10 rate quotes. You can check liability-only policies side-by-side with full coverage plans, to see the price differences. All you need to do is enter your zip code to get going. Most people save hundreds of dollars by buying direct auto insurance. Start your free quote and save more.