Stefan Deretic

Everything you need to know about full coverage car insurance What is Full Coverage Car Insurance? While many think that they have full coverage auto insurance, the reality is somewhat different. The main issue with this term is that there is no such thing as full coverage car insurance. Full coverage is a term usually used to describe a combination of different car insurance coverage plans, which mix and blend in together in order to provide you with the best insurance, in the case of an accident, damage or theft. The ideal full coverage auto insurance varies from person to person, depending on the specific needs that you have, including but not limited to your assets, risk profile and financial power. What are the different types of car insurance you could choose from? There are many different insurance plans for your motor vehicle, and some insurance companies allow even customized insurance coverage plans. That being said, the main three categories of car insurance coverage are: Liability Coverage Liability coverage is also sometimes called no-fault coverage, and it covers the damage you cause to other individuals or property, as a result of an accident that you caused. This coverage is mandatory, virtually anywhere, as the majority of states are requiring some level of this insurance plan. Typically, there are three distinguished limits for liability coverage – the maximum payable amount for personal injury, per person; the maximum payable amount for personal injury per accident; and the maximum payable amount for property damage. Collision Coverage Collision coverage insurance plan is used to ensure that you’ll get paid for the damages caused to your vehicle, as a result of a collision with another vehicle or an inanimate object. The main difference between this and liability coverage is that it doesn’t matter who caused the accident, and it covers only the damage inflicted upon your vehicle. Comprehensive Coverage Similar to collision coverage, comprehensive coverage also covers the damage caused to your vehicle, but in this instance, the damage covered is the damage caused by external factors. The exact factors vary from one insurance company to the other, but they usually include natural disasters (fire, flood, and storm), vandalism, theft and damage caused by animals. One thing to keep in mind regarding comprehensive coverage is the possibility of lowering your deductible Personal Injury (Medical Payments) Protection Coverage This coverage covers the post-accident expenses, meaning the insurance company is covering the cost of any potential medical bills for both you and any passengers involved. This plan can also cover income continuation, child care services, and funeral expenses. This insurance coverage is also valid if you were walking or riding a bike, as long as it was caused by a motor vehicle. Uninsured and Underinsured Coverage This coverage makes sure that you’re all set up, in case you end up in a motor vehicle accident caused by a person who doesn’t have insurance, or doesn’t have enough coverage, which can happen, as many people decide to take only state-regulated minimum liability coverage. There are two different versions of this coverage plan – Uninsured and Underinsured Motorist Coverage and Uninsured and Underinsured. Less Known Insurance Coverage Plans Roadside Assistance Coverage, sometimes also called Towing and Labor Costs Coverage covers any costs of roadside assistance, including (but not limited to) towing, if your car stops from any mechanical or electrical breakdown. Rental Reimbursement Coverage plan covers the expenses of renting a car, while your vehicle is undergoing repairs, although there are certain limits to this, which varies from one insurance company to the other. Custom Parts and Equipment Coverage may just be as important as any coverage plan mentioned above, as this covers any damages or theft made to the equipment of your car. This can be quite cost effective, especially if you have a lot of high-end, custom parts like TV and sound systems, custom body work and similar. Loan or Lease Payoff Coverage plan pays a certain percentage of the cash value of your vehicle if your car gets totaled. How to decide when is the time to get a full coverage? While there are many different factors that will have an impact on your decision whether to get a full coverage insurance plan or not, the ones that are the most important are the age of your car and your deductible. If you have a brand new car, it’s imperative that you get a full coverage, and you’ll be able to keep your deductible quite manageable. This will ensure that you don’t get stuck with long lasting claims processes, which are never quite certain. You will also save yourself the trouble of having to prove who actually caused the accident, which is a hassle you definitely don’t need. After you’ve paid off your vehicle, you’ll probably have to raise your deductible, but at the same time, some of the coverage plans will become redundant. The perfect example for this instance is the loan or lease payoff coverage. This means that, while you may still have most of the full coverage package, you’ll be paying a similar amount of money. When you get to the point where it would actually cheaper to just buy a new car, than it would be to get the old one repaired, that’s the right moment to drop every coverage plan, except liability coverage. That being said, keep in mind that some insurance coverage plans may still come in handy. A great example of this instance would be the personal injury coverage plan. How much does full coverage exactly cost and how to make it more affordable? It’s not easy to get a specific number as an answer to this question, as there are many components that are affecting that number. While there are many components that are affecting this number, some of which include your risk profile, as well as the insurance company that you opted out for, there are some averages for most of the common types of insurance coverage. Here are the full coverage car insurance quotes: For minimum liability coverage, the price you have to pay every month range from $250 to $600. For typical full coverage insurance plan (which includes comprehensive and collision coverage) the price ranges from $1000 to $1.600 For premium coverage, the monthly price ranges from $1.100 to $2.500 Cheap Full Coverage Car Insurance While it may seem that full coverage can be truly expensive, there are a few proven ways that ensure you’re getting the best possible deal. If you want to get a good deal, you have to do a fair amount of window shopping, to be able to get the best possible deal. Finding an insurance company that has discounts on their coverage plans is the first step in getting a cheap full coverage car insurance. Comparing what different insurance companies have to offer for virtually the same amount of money is another one of those steps. Don’t be afraid to use the internet to help you in your decision, as there are many websites that provide different comparisons across all states. It’s imperative to choose an insurance company that has a good reputation, which will require an extensive research, in order to get more knowledge about that company. Bear in mind, that while cheaper insurance coverage plans may seem like a better option at first glance, that may not always be the case. While shopping around for the cheapest car insurance, be mindful of the coverage it provides, and check to see if that coverage is adequate. Being wise about full coverage car insurance plan you are choosing is important, as that will make an impact on your assets, health, and wallet, meaning that you should put the needed effort in order to make the best possible choice. Another thing you should be wary of is that you truly understand the policy you are choosing before you put in your signature.