When you purchase a new car most lenders will require that you use full coverage auto insurance in order to protect the vehicle from physical damage, theft, fire, and a handful of other causes. Full coverage auto insurance will pay for all the repairs as long as you meet your deductible. Full coverage auto insurance is more expensive from other types of car insurance but it provides you with the maximum amount of protection possible.
What Does Full Coverage Auto Insurance Cover?
Although most people will tell you full coverage insurance means you are protected from everything, there are some loopholes. Most insurance companies will offer 100% protection for collisions, bodily injury, property damage, and theft. Full coverage auto insurance actually comes in two forms, third party coverage of full coverage. The third party coverage is considered a “full” coverage plan but it is similar to that of limited insurance coverage. Check on the policy to see what the insurance company is actually going to cover and what you will still be liable for.
Purchasing Full Coverage Auto Insurance
Like any insurance option out there, you need to get a quote. Work with several different auto insurance companies in order to see which one can provide you with the lowest monthly cost or the lowest deductible amount. The policies on auto insurance usually come in a year-long coverage amount in which you can pay the entire amount or you can choose to pay monthly or bi-yearly. Work with your homeowner’s insurance company to see if they offer insurance coverage as they may be able to provide you with package discounts, saving you hundreds of dollars on the cost of the policy.
How Do I Find a Good Insurance Company?
If you are new to auto insurance, ask your friends and family members for referrals. Some auto insurance companies will offer referral discounts, saving both parties money. Always ask about claims experience other people have had with the insurance company. This is the best way to find out what type of customer service they offer and just how quickly they are willing to help their customers. Seek out a car insurance company that has a good reputation and one that is known for offering fast service for issues like roadside assistance and to make sure they process your claim quickly.
Finding Cheap Full Coverage Auto Insurance
With full coverage auto insurance you do need to be prepared to pay more for your insurance as you are carrying more than the minimum protection amount. If you are involved in an accident or you need to make a claim, you will need enough money set aside to pay for your deductible amount. Since the cost for full coverage can be very expensive, how can you find the cheapest full coverage auto insurance? Doing your research is the best way to get lower monthly premiums. To ask for quotes you will need the following information:
- Vehicle make and model
- Engine capacity
- Vehicle year
- Estimated annual mileage
Some insurance companies will ask for additional details like your credit rating, income, if your vehicle is garaged, does it have an alarm, etc. Be prepared to offer these additional details as they can dramatically reduce the cost of your insurance coverage. Use the internet to acquire price quotes and compare the coverage and deductible amounts. If you are still not sure, pick up the phone and call a few different companies to see what they can offer.