When buying auto insurance, whether for a commercial or personal purpose, you’ll find that there are generally two types – full coverage auto insurance, and partial coverage insurance.
Though partial insurance coverage has its merits, and we’ll talk about a few of them, the purpose of today’s piece is to discuss full coverage in detail in order to help you decide how and where to buy it.
The Basics of Full Coverage Auto Insurance
Whereas partial coverage insurance covers only a portion of potential accidents, full coverage covers everything from nature damage to collision type accidents, which is why it’s more expensive.
As part of your full coverage policy, you’ll receive the following coverages, at a minimum:
- Collision – An at-fault accident with another vehicle, person, or object;
- Comprehensive – Theft, vandalism, and nature damage.
Often times, you’ll also have a few of these additions:
- Uninsured Motorist Coverage – Covers you in the event you get hit by someone without insurance;
- Underinsured Motorist Coverage – Covers you in the event the person at-fault had too little insurance to properly pay for damages;
- Towing/Rental Car Reimbursement.
As you can see, full coverage auto insurance is a full package, and will ensure that no matter what happens to your car, that you and the people inside of it are covered. Though both full and partial coverage feature personal injury coverage, we won’t discuss that here, as these are mandated by state minimums.
Where to Buy Full Coverage Auto Insurance
Anytime you get an auto insurance quote, you’ll get the option to choose full or partial coverage. In other words, you can find full auto policies almost everywhere you find auto insurance being sold.
Some of the most popular places to buy full coverage auto are Geico, Progressive, State Farm, Nationwide, USAA, esurance, Safe Auto, and Allstate.
How Much is Full Coverage Auto Insurance?
This is the kicker, and why many people try to skimp out of full coverage…it’s expensive. You’ll usually pay 25%-50% more for a full coverage policy, and while it’s not always worth it, in most cases, it’s well worth the cost.
For starters, anytime you buy a new car on a loan, you’ll be forced to maintain full coverage until the car is paid in full. Failure to do so could be grounds for repossession.
When to Buy Partial Coverage Insurance
There are a few exceptions when full coverage auto doesn’t make sense. Here are a few of them:
- When a car is not driven and kept in storage or a garage;
- When a car is virtually worthless, and it cost more to maintain full coverage than a car is worth;
- When a car is already damaged or has been totaled.
As you can see, it almost never makes sense to avoid full coverage auto, budget aside. If you can afford it, you should probably buy it, especially if you owe money on your loan.
