Full Coverage Auto Insurance Explained

November 7, 2013

Understand the difference between full coverage auto insurance and comprehensive coverage. Learn how to find cheap full coverage car insurance.

Liability Insurance When it comes to auto insurance, there are many options open to you. You can choose between third party coverage, which offers limited protection, or full coverage auto insurance with all its benefits. You can also decide whether to go with full circle auto insurance (full tort auto insurance) or toward purchasing the limited tort option.Many people believe that they are covered for everything if they have a full coverage auto insurance policy. A full coverage policy is a combination of liability insurance and comprehensive insurance. However, this does not necessarily mean that you are covered for everything. You still must be aware of the amount of coverage that you have in the event of an accident.

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Liability insurance will cover a minimum amount if you injure someone or damage their car in an accident. When you are choosing this coverage for your automobile insurance, you will be able to choose the minimum amount required by the state you live in. However, you are not fully covered if you only have the minimum coverage and an accident exceeds the amount that the insurance company will pay. You will be responsible for the rest of the money. If you have assets like a home, it is possible that you could lose your home in this type of situation. That is why it is important that you get full coverage car insurance that will protect your home in the event of an accident.

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You should consider getting as much liability coverage as possible. This will not only protect your current assets, but any future assets that could be taken in a judgment against you.

True Full Coverage Car Insurance

Full coverage car insurance is a policy that will protect your assets when you injure someone or damage their property. It is far more important to protect yourself in the event that you hurt someone else than it is to only consider damage to your own vehicle. Most people have this concept backwards and only have the minimum required liability insurance to save money on their policy. You will end up paying a great deal more in the long run if you only carry this amount of coverage.

Is Full Coverage Auto Insurance Required or Just Recommended?

In most states, full coverage auto insurance is recommended, but not required, unless there is an outstanding loan or lease on the vehicle. In any case, if your vehicle's actual cash value exceeds your deductible by two to three times, it is a good idea to continue full coverage insurance. By having a deductible lower than the value of your vehicle, you can avoid having to pay full retail price for any collision repairs your car may require.

You are also protected because, if your vehicle is damaged beyond its actual cash value, you will receive a payment from the insurance company for the cash value. This can provide you with funds that may be applied toward the purchase of a new vehicle. In short, full coverage auto insurance can help you remain solvent, keeping you from having to finance a new vehicle or pay cash for collision repairs.

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If your vehicle has an outstanding balance on a loan or lease, you will be required to carry full coverage insurance with minimum coverage as noted in your finance agreement or lease. Full coverage insurance is required in this case because the finance company does not want damage to go unrepaired, nor do they want to face the prospect of repossessing a vehicle with thousands of dollars worth of damage, because the lower selling price of the vehicle at auction will most certainly be a write-off for the finance company. If you are in a pinch and need to find cheap full coverage to keep yourself legal, you can use the tools available at www.CarsDirect.com to get competitive local quotes.

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Finding Cheap Full Coverage Auto Insurance

Finding cheap full coverage auto insurance is possible if you take some time and do your homework. Full coverage auto insurance will protect your assets in the event that you are involved in an automobile accident that injures another driver. Full coverage means that you carry the more than the minimum amount of liability insurance. You must be sure to have enough coverage to pay for a catastrophic accident without putting your home and assets in jeopardy.

There are three simple ways to obtain full coverage auto insurance:

Getting Insurance on the Internet
All you need to do is go to the website of the insurer of your choice. You will need certain details on hand before obtaining a full coverage auto insurance quote.

The beauty of the Internet option for obtaining full coverage auto insurance is that you have the option of getting the best deals through price comparison websites. Many people claim that you are being charged affiliate fees from the referring site. Still, you stand a very good chance of getting the best deals, fees or no fees!

Getting Insurance over the Phone
If you don't like the idea of obtaining full coverage auto insurance through the Internet, then place a simple phone call to an insurer of your choice. You can also combine the benefits of both methods by carrying out an Internet search prior to putting through a phone call to a potential insurance company. You will still need all the same details on hand that you needed for the Internet method. One advantage of making a phone call to obtain full coverage auto insurance is that you are speaking to a real person, so you can negotiate the best deal.

Getting Insurance through a Local Agent
This method seems to be gradually becoming obsolete as very few people go through this hassle. If you choose to use it, however, it is still a very viable option. It might prove very useful when searching for full circle auto insurance (full tort auto insurance) if you can negotiate deals one-on-one.

Each method has its pros and cons. The Internet method is fast and easy, but you are denied the benefits of a one-on-one conversation with a real person. The phone method affords a person-to-person dialogue, but you might end up paying more if you do not understand the insurance industry. The method you choose is a matter of personal preference and convenience. However, it's always advisable to do a lot of shopping around before sealing any deal.

Shop for Quotes
To get the best prices for your cheap full coverage auto insurance you must do a side by side comparison. There are a number of auto insurance companies in the market that are more than happy to give you a quote for a policy. Compare the prices for similar policies from each of the companies to get a good comparison of what you get for your money. Make certain that the policies you are comparing have the same amount of coverage to get a full picture of the price you are paying for your full coverage auto insurance policy.

Comprehensive Policies
Cheap full coverage auto insurance policies should also include comprehensive coverage for your automobile in the event of accident, fire or theft. For a policy to be considered full coverage, it must contain this coverage. The amount of coverage that you have for your automobile will depend on the expense of the car and whether or not you still have a loan on the vehicle.

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Who Has Cheap Full Coverage Auto Insurance?

If you are looking for cheap full coverage auto insurance, there are many different companies fighting for your business. Full coverage generally means that the state's mandatory liability requirements are covered as well as including comprehensive and collision protection. However, you must always be aware of the terms and conditions of the policy as even full coverage has a limit on the amount that will be paid out and you may find that you will have to meet any costs in excess of that figure.

Another limitation of full cover is that when a vehicle is considered to be a total loss, the insurer will only pay out the current market value of the car irrespective of whether the outstanding loan amount is higher than the estimated value. You will then be responsible for meeting any shortfall. Shop around and compare prices from a range of insurers before committing to buy. Some insurers that will provide full coverage policies are:

  • Allstate. A provider of auto insurance to more than 17 million households nationwide, Allstate is one of the United States' biggest insurance companies. Their full coverage policy includes protection against under insured or uninsured motorists as well as medical payments. They also offer additional options such as Personal Injury Protection and reimbursement of rental car fees.
  • Nationwide. Eighty years of experience has enabled Nationwide to learn how to tailor their full coverage policies to meet their customer needs. As well as including towing and labor coverage, they also include medical expenses and protection against uninsured drivers. In some states, they also offer no fault protection.
  • Progressive. Rated as one of the most flexible insurers, Progressive allow you to tailor their product to provide full coverage with any additional options that suit your lifestyle. Their coverage options include loan/lease payoff and pet injury as well as rental reimbursement and medical payments.
  • Liberty Manual. Liberty Mutual have been dealing in auto insurance since 1912 and their full coverage policies offer a variety of options including windshield repairs and unlimited rental coverage. They also provide the option for new car replacement coverage in most states if your vehicle is less than one year old and you are the first owner.
  • Safeco Insurance. Safeco Insurance offer a basic level of cover that you can add optional items to in order to build up a full coverage policy. Extra items such as breakdown assistance and new vehicle replacement are also available in some states.
  • State Farm. With over 90 years experience in the field of auto insurance, State Farm insures more vehicles in the United States than any other company. Their full coverage options include under insured and uninsured motorist coverage, emergency road service and rental reimbursement.
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