What Is Full Coverage Car Insurance?

What is “full coverage” car insurance?

Full coverage isn’t an actual type of car insurance, instead it’s a common term used to refer to a policy that includes a mix of coverages designed to protect your car.

It does not imply coverage for every scenario or a guarantee that your claims will be approved. Instead, it combines various coverages tailored to your needs, ensuring protection up to the selected limits.

Typically, “full coverage” includes:

• Liability Coverage
• Collision Coverage: Pays for damage to your car from an accident, regardless of fault.
• Comprehensive Coverage: Covers non-collision-related incidents, such as theft or natural disasters.
  
  While the above are the primary components, additional coverages can also be included to enhance your policy, such as:
  
• Personal Injury Protection (PIP): Similar to MedPay, but may include lost wages and additional costs like childcare.
• Uninsured Motorist Coverage: Protects you if you’re involved in an accident with an uninsured driver.
• Underinsured Motorist Coverage: Covers costs that exceed the at-fault driver’s insurance limits.
• Roadside Assistance: Offers services like towing, flat tire replacement, and fuel delivery, included in your policy if you drive with the Lemonade app.

Insurers like Lemonade allow you to customize coverage limits and deductibles for each type. This flexibility enables you to add specific protections, such as temporary transportation coverage and extended glass coverage, ensuring comprehensive protection for you and your vehicle.

Should you get full coverage car insurance?

Whether you need full coverage depends on your circumstances and financial situation. If you lease or finance your vehicle, lenders usually require both collision and comprehensive coverage. Conversely, if you own an older car with a lower market value, you might opt for basic liability to save on premiums.

Consider your ability to repair or replace your vehicle out of pocket when evaluating your needs. Assessing the cost of premiums against potential benefits will help you determine the most suitable level of coverage for your situation.

How much does full coverage car insurance cost?

The cost of full coverage car insurance varies widely based on factors like age, driving record, location, and vehicle type. On average, full coverage can cost significantly more than basic liability insurance due to its comprehensive protection. Nationally, the average annual premium for full coverage is approximately $2,278, though this can fluctuate based on individual circumstances.

When searching for full coverage, it’s crucial to compare quotes from different insurers. You can often lower your premiums by selecting higher deductibles, maintaining a clean driving record, and taking advantage of discounts, such as bundling insurance policies.