Cheapest Car Insurance Rates for July 2020

If you own a vehicle and want to keep it covered against all kinds of damages, you should get auto insurance. In fact, auto insurance is the most common type of insurance policy in the US considering almost everyone owns some kind of a vehicle.

It is also the most expensive insurance policy one could ever purchase. Your own vehicle is the most reliable mode of transport for you and a big part of your life, and auto insurance is an essential part of your vehicle’s life, besides being a legal requirement.

Although you can still buy a car and drive it without insurance, it is illegal in all 50 states and can get you penalized.

It is the Law

Because it is a legal requirement, most people stick to the minimum coverage in order to comply with the regulations. But in case of an accident or collision, the basic coverage is not enough to pay for the damages.

This is when a cheap full coverage insurance is highly beneficial. It is not a rule to buy full coverage auto insurance because most states require people to buy only a small amount of coverage to pay for injuries in damages in case of a collision.

But a full coverage insurance offers several more benefits compared to the basic coverage. Of course, this also means a higher premium but there are ways you can manage to get a cheap full coverage car insurance without breaking the bank.

While full coverage auto insurance is indeed better and safer than the basic coverage, most people have no idea what full coverage auto insurance policies involve. Here’s what you should know before deciding if full coverage auto insurance is for you.

What is full coverage auto insurance?

Before you assume that full coverage auto Insurance is right for you, it helps to know that there is no auto insurance that goes by the name of “full coverage”.

In fact, if you go to any insurance company looking specifically for a full coverage auto insurance, you could be disappointed to find nothing. This is because full coverage is not any designated term for any insurance policy. It just indicates an insurance policy that combines both collision and comprehensive coverage.

There are some people who assume that the insurance policy they currently have is full coverage. But in most cases, it is not. Most auto insurance policies are not full coverage at all.

You have to specifically look at policies that include both collision and comprehensive coverage when you are looking for a cheap full coverage auto insurance.

A full coverage auto insurance policy is actually not a single coverage. It includes several different types of coverages to make one whole policy. You have the option to pick and choose the kinds of coverages you want for your vehicle.

What does a full coverage auto insurance policy include?

There is no hard and fast rule about what a full coverage auto insurance policy must include. Different insurers will offer different kinds of coverages in a full coverage auto insurance policy.

Customers often have the flexibility to add the coverages that they want in the policy. However, keep in mind that the insurance premium will depend upon the kind of coverage you choose. Another thing to consider is that even a full coverage auto insurance policy does not include certain coverages, and you need to purchase them separately.

So what exactly does a cheap full coverage auto insurance policy include? It typically includes the following:

No fault insurance

The liability or no fault insurance is required by most states. As of now this is the basic auto insurance coverage that every vehicle owner needs to have. It is required in almost all of the 50 states around the country but isn’t easily available in states where it isn’t required by law.

This type of auto insurance coverage helps pay for the driver’s and passengers’ medical bills if they are injured in a collision, irrespective of how it happened or who was responsible. The no-fault coverage is also called personal injury protection insurance.

Depending upon the insurer and the state you live in, the no-fault coverage may also help pay for the health insurance deductible, additional expenses exceeding the health insurance coverage limits, loss of income because of injuries suffered, essential services that may be hampered because of the injuries (such as childcare), and funeral expenses.

Collision coverage

If your vehicle suffers damages in a crash, the collision insurance coverage is what helps pay for the cost of repairing or replacing the vehicle. Collisions can involve another vehicle or any object, like a tree or a guardrail.

Collision insurance coverage is often mandatory when leasing or financing your vehicle because crashes are the most common types of accident vehicles are involved in. Even if there are no injuries, the vehicles will almost always suffer minor to major damages.

Depending upon where you live, there may also be additional benefits of a collision insurance including not having to pay out of your pocket for repair costs above the deductible amount, getting coverage for all the losses you suffered when your damaged vehicle is totaled (total cash value of the vehicle), and coverage for injuries to pets in the vehicle (some insurers automatically add this with collision coverage). Collision insurance also covers hit and run cases.

Comprehensive coverage

To put it simply, comprehensive insurance includes any and all damages suffered in events beyond your control. In many states, this is also known as other-than-collision insurance coverage.

Some of the coverages included are theft, fire, explosions, vandalism, and riots; glass and windshield damage (if the damage is tiny, some insurers will repair it for free); getting hit by falling trees and branches, rocks and other heavy objects; floods, hail, storms, earthquake, etc; and collision with animals (but if you swerve to avoid hitting the animal and end up hitting a guardrail or tree, that damage will be covered by the collision insurance).

Even though these are typically the coverages included in a cheap full coverage car insurance, things may differ from one insurer to another. Therefore you must read the fine print very carefully and ask detailed questions about the policy.

Additional coverages

Getting a full coverage auto insurance policy does not automatically mean you are protected no matter what. Many people make the mistake of believing that their full coverage insurance will help pay no matter what kind of damage or accident the vehicle suffers.

What they do not realize is that there are additional coverages that a full coverage insurance policy does not include. In fact, the list of additional coverages is longer than the benefits of a full coverage insurance policy.

In certain circumstances, even a full coverage insurance policy is not enough to cover against certain damages. Therefore instead of blindly relying on full coverage insurance, you should consider adding coverages to your insurance policy depending on your needs.

There are various other types of auto insurance coverage that give you additional protection in case of any unfortunate incident with your vehicle. Some of them are:

Uninsured motorist protection

Whenever you get into a collision with another vehicle do not always expect the other driver to be insured. Many times you will encounter an at-fault driver with no insurance coverage to pay for the damages that you suffer.

In such a case you have to pay for the expenses out of your own pocket. That is why an uninsured motorist coverage is a wise decision by any vehicle owner. Cheap full coverage insurance policies often don’t include this.

Therefore if you get into an accident with an uninsured motorist even your full coverage insurance policy cannot help you. Having insured or underinsured motorist protection can be allowed in difficult situations.

Medical payments coverage

More often than not when considering car insurance, people mostly think of the damage to the vehicle. But any collision or accident can go well beyond that and cause injuries and even death.

In such a case your full coverage car insurance may not be sufficient. This is why you should consider adding medical payments coverage to your car insurance policy. This coverage pays for your medical cost after you or your passengers have been hurt in a car accident.

Medical payment’s coverage works regardless of who was at fault. Depending on your insurer and where you live, the medical payments coverage may also pay for funeral expenses in case of a death.

Rental reimbursement

Most standard insurance policies pay for repair costs of the damaged vehicle but not for the rental cost while the car is being repaired. While your car is at the garage being repaired, you will need another car for your daily needs and also have to pay rent.

Even with a full coverage car insurance, you may have to pay for rental cost out of your own pocket. This is when rental reimbursement is helpful to a vehicle owner. It not only covers the transportation cost of your vehicle to the mechanic and back but also pays for the costs of the car you rent.

Emergency road service

If your vehicle breaks down in the middle of the road and leaves you stranded, then the towing and labor costs are covered by the emergency road service coverage. These may seem trivial coverages, but become necessary in case of a breakdown or accident.

Customized parts

Vehicle owners often choose to fit their cars with customized parts that are more expensive than the parts the car came with originally. Damage to these expensive parts increase the total repair cost of the vehicle. The customized parts coverage helps pay for these expenses.

Cost of full coverage car insurance

Given all the benefits of a full coverage car insurance, you must be wondering how much it costs annually. It is no surprise that a full coverage car insurance will cost significantly more than the mandated minimum coverage.

Where the minimum coverage costs you around $700 dollars a year, full coverage insurance will cost you around $1,500 annually. This might seem a hefty price to pay at first but considering the expenses you have to bear if your vehicle has an accident a full coverage car insurance is a better option because it provides the maximum protection.

Insurance premiums also vary from one state to another. While in Illinois it’s around $1,389 a year, in New Jersey it’s $2,069, and in Michigan, it’s $3,986.

Where to get cheap full coverage car insurance?

Full coverage auto insurance is available with almost all insurance providers in the country. Some companies provide only auto insurance while others provide other types of insurance too. Many insurers offer discounts if you have a low-risk driving history.

If you are a new driver with a driver-training course, a brilliant student with good grades, or an older driver with a defensive-driving course, you might get certain discounts. Depending upon the insurer, if you buy all of your other insurance policies like health, home, rent, and car from the same provider, you might even get huge discounts.

However, before jumping at the deal, make sure to compare car insurance premiums from different insurance companies. Only purchase all of your insurance policies from the same company if that is a better and cheaper option than all others.

Who needs a full coverage?

There are certain circumstances when you might need to buy a full coverage car insurance. This could be the case if you have a car loan. Lenders often want their customers to have full coverage car insurance to remain covered in any situation. This usually acts as a safety net for the lender. Some insurance companies don’t let you buy collision coverage without buying comprehensive first.

For other situations, you should consider full coverage insurance. For example, if you have a new and expensive vehicle, you face heavy traffic daily, you live in extreme weather conditions, or face a high risk of theft or animal collisions. There are other reasons you may be required to carry high risk auto insurance of course.

Cheap full coverage car insurance can be beneficial if your vehicle ever gets into an unfortunate situation, but remember that older cars don’t get too many benefits. Before a purchase, make sure to perform the necessary research to find out if full coverage auto insurance will benefit you.

FAQ

General Auto Insurance Questions

Auto insurance is mandated by state law. There is a minimum requirement to satisfy the state’s conditions without being penalized. But, a driver is not limited to the minimum standards of insurance. There is an alternative known as full coverage, which this FAQ will attempt to answer thoroughly.

The Fundamentals of Full Coverage

Each “Full coverage” insurance product has its unique provisions, but they are all the same at its core functions.

Purpose of Full Coverage Auto Insurance

Deciding how to properly manage your insurance can be a difficult proposition especially if you do not know what kind of coverage you have. Additionally, you must figure out how the insurance will maximize your benefits considering cost.