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When Full Coverage Auto Insurance Isn't Enough - And What To Do About It

By Edited Oct 23, 2016 0 0

How Much Do You Expect To Pay For Full Coverage Car Insurance Each Year?

What to do when you don't understand what you need with vehicle insurance...

You're probably already confused about the varying levels and complexities when it comes to insuring one of your most important transport assets... Your car!

And one of the major factors when choosing to cover yourself for 3rd party insurance with your vehicle is cost, and "What does it cost?" almost always comes into the equation. To make matters even more difficult is the varying minimum requirements each country and thier corresponding states require.

You might have looked at average car insurance pricing and seen it as awfully expensive, thinking to yourself, do I really need this?... The thing is, most of the prices you read about and see in the shiny brochures, television ads and magazines is the top price for what is known as full coverage car insurance.

What Defines Full Coverage Car Insurance?

The term itself is somewhat misleading in my opinion, because when you really think about it, are you really ever fully covered anyway?... I mean, we're all only ever insured up to your particular insurance policies limits.

So full coverage car insurance is when you obtain a policy with liability, comprehensive cover or collission damage greater than one hundred thousand dollars across all these three types of cover.

While you might think that this kind of one size fits all insurance is going to cover you for almost anything, when you really look at the total cost of lawsuits, medical bills and other unforseen costs, it can very quickly add up to in excess of that 100k mark, leaving you back in the uninsured territory.

Who Is Full Coverage Car Insurance Most Suited To?

It's really for anyone who can and wants to be fully covered and owns a fairly good vehicle. To ensure that you're full coverage car insurance is enough, we now need to break down what to do when evaluating a policy to ensure you are fully covered.

1. Take a good look at your libaility insurance component of your coverage.

This is the single most important element of your insurance cover, and virtually any financial professional will always edicate that you purchase more of this type of insurance than your state minimum requires.

2. Collision And Comprehensive Cover - Evaluating Your Needs

This always depends on an individuals needs and the overall value of the vehicle which is being insured. It's most often a personal decision based on your own unique needs and outcomes should an accident occur, and most often people own their own vehicle when looking into this. If the car is rented or leased there are other factors covering insurance of the vehicle, so do ask your insurance professional about this, however they quite often involve a compulsory full coverage car insurance policy to be taken out.

What Are My Car Insurance Policy Limits?

You might be wondering if you can in fact find a car insurnace company that offers a policy which covers everything. However there's ALWAYS going to be limitations on how much insurance you can invest in for yourself and your family.

In most cases if you purchase between $100,000 and $300,000 of liability insurance you will in many, many cases be quite well covered, but there's always the exception and hence the term "unforseen extremities" come into play which you won't be covered for.

If you think the above doesn't fit your needs and you want even more coverage, then you can investigate other, higher limit kinds of supplemental insurance like and umbrella liability policy, or you could even include more vehicle coverage in your homeowners insruance.

What Can I Expect To Play For a Full Coverage Car Insurance Policy?

Many different sources publish this information every year, and it always reflects on a stereotypical profile of driver. The risk profile from driver to driver varies greatly, if you're younger you can expect to pay more, especially if you're under 21 and driving a V8 style, hotted up vehicle.

A good report to look at is the "most and least expensive states for car insurance" which is a study published by insure.com. And on first read the report has some very usable information comparing and breaking down the average premiums that each state can pay and then tabled in an overal national average.

But as I pointed out earlier, these reports take in the average driver. If you're an under 21, a female driver or one at high-risk or a combination of the high-risk profiles then you can expect to pay a very different fee compared to a middle aged male, driving a small car and only a short commute to work in a safe back street neighbourhood (as opposed to a busy, dangerous, highway 80 miles from home). So never take what you read as the norm, you will always need to weigh everything and the more information you give to your insurance provider the better idea you'll have.

If there was to be an average of the montly fee for your comprehensive vehicle insurance, you could look at somewhere in the ball park of $75 to $150 / month. But this is just a very loose starting point, and virtually impossible to know what your exact figure will be without weighing up your driver risk profile.

There are many online insurance providers where you can easily and without cost, go and enter your zip code, age, and details and get insurance comparisons, where you can learn how much a specific car insurance policy will cost you.

One last thing... Before you jump out and get any car insurance, be sure to do your homework and checkup online first with at least 3 to 5 different car insurance providers as policy fee's vary wildly and the cheapest (as well as the most expensive) policies may not be the best, so do your due diligence please.

You might also be interested in this article also: How Full Coverage Auto Insurance Can Give You The Most Benefits

 

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