The term full coverage car insurance is used a lot in the insurance industry. It leads many drivers to think that when they purchase full coverage, they are protected from everything. Many times when policy buyers inquire about the cost of car insurance, the quote that is given is the price for full coverage car insurance. Many wonder if the protection of the insurance is worth the price.
What does it include?
Full coverage car insurance is an umbrella that houses smaller policies. The policies that are normally included are:
- Liability – This insurance pays for damages and injuries to the other person’s property in the event of an accident.
- Collision – This insurance pays for the policy owner’s car in the event of an accident.
- Comprehensive – This policy pays for damage that is caused by something other than a car accident (hail, deer, theft, etc).
- Uninsured motorist damage – This policy pays if there is damage resulting from an accident with an uninsured motorist.
- Uninsured motorist bodily injury -This policy pays for any medical bills after having an accident with an uninsured motorist.
With all the small policies that full coverage car insurance has, there are many life events that are protected. There are also some that aren’t covered. Be sure to read the exclusions or ask the insurance agent what the full coverage insurance policy doesn’t cover.
Is it expensive?
Full coverage car insurance isn’t expensive for some and others cringe at the bill each month. Different companies price their insurance differently. The prices are customized for everyone.
Insurance companies price insurance based upon risk. They will insure anyone but if they feel the policy holder is more likely to have an accident and file a claim, the price of insurance will be more. Insurance companies ask for a lot of information to assess risk and build a driver’s profile for each person. The driver’s profile will include a policy holder’s age, sex, location, driving habits, driving records and the type of car to be insured. If the driver’s profile shows the policy owner to be a large risk, the cost for full coverage car insurance will be expensive.
There are some ways to lower the cost of full coverage car insurance. Many people don’t realize there are discounts that are easy to qualify for. There are safe driver discounts, multi car discounts, good student discounts and many more. To get the most current list of discounts available, ask an agent.
Is the price worth it?
When weighing the cost and benefits of any insurance policy, a policy owner must consider the costs involved.
If the total value and cost of full coverage car insurance is worth more than the value of the car, it may not be the best investment. But for a newer, more expensive car the insurance could be a valuable investment. For drivers that don’t have the available money to cover the expenses that will result from a car accident, full coverage car insurance may be the best thing for them.
There are many things to consider when deciding whether or not to buy full coverage car insurance. The biggest question that many policy owners ask is how much is peace of mind worth.