Full Coverage Auto Insurance
Full coverage insurance is a term used in auto insurance that is a coverage that protects your car in case of an accident. The term full coverage does not technically exist but is a term used for Comprehensive and Collision coverage. When you receive a full coverage insurance quote many people think it comes with all the bells and whistles, but in most cases it does not. The best way to describe a basic full coverage policy is a policy that has the state minimum liability limits with a comp and collision deductible that is usually either $500 or $1000. It does not automatically come with the “extra coverages” below:
A deductible on your full coverage insurance policy is the portion of the money that the insured is responsible for in case of an accident. Here are the different deductible options you can choose from:
The higher your deductible the lower your monthly premium and vice versa the lower your deductible the higher your monthly premium is. Full coverage insurance is required when you have a loan on your car. Most lienholders will require you to carry a $500 deductible. Also, majority of car lots will require you to provide them with a declarations page showing you have full coverage insurance before you can leave the car lot with your new car. If you purchase a car on a weekend and have to have full coverage it is important to know how your insurance company handles that situation. Many customers are forced to purchase higher priced full coverage insurance because their insurance company is closed on the weekend and settle with purchasing full coverage insurance from the car lot.
How much does full coverage insurance cost?
Full coverage insurance rates vary based on many different factors. Here are several factors auto insurance companies use to price full coverage rates:
- Driving record
- Credit Score
- Insurance History
Full coverage costs about twice as much as liability only auto insurance. But you will be out a lot less money if you purchase full coverage if you were to have an accident. One of the best ways to save money on full coverage insurance is to keep your insurance active for at least 6 months so you can qualify for the prior insurance discount. You will also want to make sure you find an insurance company that specializes in full coverage. Some insurance companies that specialize in liability only auto insurance do not want to write full coverage policies and price themselves very high to deter customers.
Full coverage is much more expensive in metropolitan cities compared to more rural areas. Large amounts of traffic coincide with more accidents occurring. Full coverage prices can be up to 40% higher in the larger cities versus smaller cities. The price of your car can also have a major impact on how much you pay for full coverage. If you were to buy a Lamborghini compared to a basic ford pickup the Lamborghini will be substantially more because the risk to the insurance company is much greater. Before you purchase a new car, it is important to call your insurance company to see how much your monthly insurance price will change before you buy the car.
What does full coverage insurance actually cover?
The basic full coverage insurance policy covers the state minimum liability limits plus damage done to your vehicle. Above we mentioned how the word “full coverage” is not an actual insurance term because in most cases nothing is ever truly fully covered. So, understanding how full coverage works is very important. Many customers get upset when they purchase full coverage and then have an accident and find out they have no roadside or rental car coverage. This is very common most insurance companies will not quote these extra coverages unless you specifically ask for them. We recommend adding roadside assistance and rental car reimbursement to every full coverage policy, it will usually only add about $12 to your monthly payments to add these coverages on.
How to find full coverage insurance with a bad driving record?
Full coverage insurance is expensive enough so when you add a bad driving record in the mix it really causes your rates to be expensive. If you are really needing to lower your monthly insurance costs and have a bad driving record, we recommend buying a vehicle you can afford to carry liability on and keep insurance for six months straight. Once you have been clear on your driving record for three years you will not be charged for those violations anymore. Also, if you can add a liability only car to your policy with your full coverage car you can get a multi car discount. Some insurance companies offer such a discount for this that it is actually cheaper to insure 2 cars compared to 1. Many auto insurance companies also offer a lower rate if the number of cars and vehicles match.
How full coverage insurance rates are affected by natural disasters
Natural disasters have a major effect on auto insurance rates in Oklahoma and Texas. Parts of Oklahoma and Texas are part of Tornado alley. Many tornados and severe hailstorms hit these areas every year doing great damage to vehicles. If you carry liability only you will not be able to turn in a claim and get your vehicle fixed. But if you have full coverage then your vehicle damaged in a natural disaster would be covered. This is why some auto insurance companies do not write much full coverage business they focus just on liability. If you are a smaller insurance company and a bad hail storm comes thru and your book of business is predominantly full coverage then it could potentially put them out of business. When auto insurance companies have to pay out large amounts on claims they pass the cost on to the consumer. Many customers who may live in an area where natural disasters don’t his much can still see their auto insurance rates go up due to these large CAT losses hitting other areas where the insurance companies' book of business is concentrated. “CAT” loss means a catastrophic loss usually referring to a major natural disaster.
What auto insurance companies are best for full coverage insurance?
Depending on your driving record and insurance history full coverage price can vary greatly. We have found a few insurance companies that offer full coverage insurance for a good price if you have a good insurance history and good driving record, here are a few:
If you do not have any insurance history and or a bad driving record here are a few insurance companies that may be able to help you find affordable insurance:
It is very important to find the insurance company that specializes in your situation. For instance if you have terrible credit you may not want to get an insurance quote from a company who hits hard on their prices for bad credit. It may be in your best interest to find a nonstandard auto insurance broker who works with numerous insurance companies who does not use credit as a rating factor.
How to find cheap full coverage auto insurance?
Here at Cheapest Auto Insurance we have several insurance carriers that specialize in affordable full coverage auto insurance. We can provide you a low down payment option and affordable monthly cost also. We have numerous discounts we can offer you on your full coverage quote. Feel free to call us at 918-744-5145 or click here to save big on your full coverage insurance.