Car insurance is a necessary expense that every driver has to consider. In most states, it’s a legal requirement to have at least liability coverage. However, many drivers opt for full coverage insurance, which provides a higher level of protection. Full coverage insurance includes liability, collision, and comprehensive coverage. While it offers more protection, it also comes with a higher price tag. In this article, we’ll be discussing how to find the cheapest full coverage car insurance and what factors affect the cost of your insurance premiums.
What is Full Coverage Car Insurance?
Full coverage car insurance is a type of policy that covers you financially for damages you may cause to other people, their property, and your own car. It includes liability coverage, collision coverage, and comprehensive coverage. Liability coverage is the only type of insurance coverage that’s legally required in most states. It covers the cost of damages that you may cause to another person or their property.
Collision coverage is optional, but it covers the cost of repairs or replacement of your vehicle if it’s damaged in a collision with another vehicle or object. Comprehensive coverage also covers the cost of repairs or replacement of your car, but it includes damages caused by theft, natural disasters, fire, and vandalism.
Factors That Affect the Cost of Full Coverage Car Insurance
The cost of full coverage car insurance varies based on several factors. Some of the factors include:
Factor |
Explanation |
|---|---|
Age and Gender |
Younger drivers and male drivers are generally considered higher-risk and thus have higher premiums. |
Driving Record |
Drivers with a history of accidents or traffic violations are considered higher-risk and have higher premiums. |
Vehicle Make and Model |
More expensive cars have higher premiums since they are more costly to repair or replace. |
Credit Score |
Drivers with lower credit scores are considered higher-risk and have higher premiums. |
Deductibles |
Higher deductibles lead to lower premiums, but they also mean you’ll pay more out of pocket if you file a claim. |
Age and Gender
Insurance companies consider younger drivers and male drivers to be higher-risk. Drivers under the age of 25 are considered to be the most inexperienced and thus, the most vulnerable to accidents. On average, men have more accidents than women, which is why they tend to pay higher premiums.
If you’re a young or male driver, there are still ways to save on your full coverage car insurance. You can take a defensive driving course, maintain a clean driving record, or buy a car with advanced safety features.
Driving Record
Insurance companies look at your driving history when calculating your premiums, and a history of accidents or traffic violations will increase your rates. If you’ve had an accident in the past, you can expect to pay more for your car insurance. However, you can still save money by taking a defensive driving course or committing to safe driving practices.
Vehicle Make and Model
The type of car you drive affects your insurance premiums. More expensive cars have higher premiums since they are more costly to repair or replace. Sporty cars are also considered higher-risk, as they are more prone to accidents.
If you’re looking to save money on your full coverage car insurance, consider buying a car that’s less expensive to repair and maintain. You can also opt for a car with advanced safety features, as these can lower your premiums.
Credit Score
Your credit score can also affect your insurance premiums. Drivers with lower credit scores are considered higher-risk since they’re more likely to miss payments or file claims. If you have a low credit score, you can still save money on your insurance by committing to paying your premiums on time and improving your credit score over time.
Deductibles
Your deductible is the amount you pay out of pocket before your insurance coverage kicks in. Higher deductibles lead to lower premiums, but they also mean you’ll pay more out of pocket if you file a claim. If you’re comfortable with taking on more financial risk, you can increase your deductible to lower your premiums.
How to Find Cheap Full Coverage Car Insurance
Finding cheap full coverage car insurance can be a challenge, but it’s not impossible. Here are some ways to save on your premiums:
Shop Around
Every insurance company sets its own rates, so it’s important to shop around and compare quotes. You can use online comparison tools to get multiple quotes in just a few minutes.
Bundle Your Policies
If you have multiple insurance policies (such as home and auto insurance), you can save money by bundling them together with the same insurance company.
Ask for Discounts
Insurance companies offer a variety of discounts, such as safe driving discounts, multi-car discounts, and loyalty discounts. Be sure to ask your insurance company about any discounts you may qualify for.
Consider a Higher Deductible
As mentioned earlier, a higher deductible can lower your premiums. If you’re comfortable taking on more financial risk, consider increasing your deductible to save money.
Improve Your Credit Score
If you have a low credit score, improving it can help lower your insurance premiums. Commit to paying your bills on time and reducing your debt to improve your credit score over time.
FAQs
What is the minimum coverage required by law?
Most states require drivers to carry liability insurance, which covers the cost of damages you may cause to another person or their property.
What does full coverage car insurance cover?
Full coverage car insurance includes liability, collision, and comprehensive coverage. It covers you financially for damages you may cause to other people, their property, and your own car.
How can I save money on my full coverage car insurance?
You can save money by shopping around, bundling your policies, asking for discounts, increasing your deductible, and improving your credit score.
What factors affect the cost of my full coverage car insurance?
The cost of full coverage car insurance varies based on several factors, including age and gender, driving record, vehicle make and model, credit score, and deductibles.
Conclusion
Full coverage car insurance is an important investment for every driver. It provides a higher level of protection than liability insurance, but it also comes with a higher price tag. By understanding the factors that affect the cost of your insurance premiums and taking steps to save money, you can find the cheapest full coverage car insurance policy that meets your needs.