Cheap Full Coverage Car Insurance may not be your first thought in regards to auto insurance. However, if you take a moment to read on this coverage type, you might realize that it can be just what you need to protect you and your family. It’s important to realize that the less coverage you have, the more expensive repairs you will have to pay for when an accident occurs. So how does Full Coverage Auto Insurance work?
With cheap full coverage car insurance, you pay a standard rate that covers all of the basic necessities for an auto insurance policy. This includes bodily injury coverage, medical payments coverage, breakdown coverage, uninsured/underinsured motorists coverage, and physical damage coverage. You usually do not have to purchase the additional types of coverage that are offered by some companies. If you are looking for the lowest auto insurance rates available, then this is the type of policy that you should be shopping around for.
Bodily injury coverage, on the other hand, involves paying medical costs for those who are injured in a wreck you are involved in. Medical payments coverage pays for the cost of caring for an in-kind gift or medical treatment you receive after being injured in an accident. Underinsured/Uninsured Motorist coverage is designed to make sure you don’t pay out of pocket costs for damages you cause to someone else’s vehicle. Uninsured/Underinsured Motorist coverage, however, is not meant to pay for damages to your vehicle. If you hit someone with no insurance, the costs of their injuries will typically be covered.
Breakdown coverage is designed to cover the cost of fixing your car if you are in an accident. The deductible amount for this portion of your premium is the price that you pay for the first level of damages. In most cases, this amount is very low, making it a good choice for a comprehensive insurance policy. However, the deductible may tack on extra charges to your total property damage coverage, such as towing and repairs to your vehicle.
Both collision and comprehensive policies come with two different types of liability limits. Collision limits are measured by the replacement cost of your automobile in the event you are in an accident. The deductible will be the amount that you pay for each collision claim. Comprehensive coverage limits are measured by the actual retail value of your vehicle. The deductible will be taken from the cash value you pay for the vehicle.
Bodily injury liability limits are what pays for any medical costs related to an automobile accident. Personal property liability limits are the amounts that your policy will pay if you have to replace your vehicle because of damage in an accident. Underinsured/Uninsured motorist limits are the amounts your coverage will pay if you are found not at fault for an automobile accident. Underinsured/Uninsured Motorist insurance can be useful when you have a low limit on your other insurance coverage because it can help you fill the gap if you’re unlucky enough to get into an accident with someone who has a much higher limit. It is wise to check with each individual insurer to find out exactly what their Bodily Injury and Property coverage pays.
Uninsured/Underinsured Motorist Insurance is designed to pay for the cost of repair to your vehicle if you are in an accident with an uninsured driver. This form of insurance coverage is usually required on a full coverage policy. Your premium will be based on how much it costs to repair the car and your personal financial situation. If you have good credit it will be easier to obtain this kind of insurance coverage. If you have bad credit it will be more difficult.
Collision and Comprehensive Insurance is your third type of coverage. Collision coverage pays for the repairs to your vehicle that are the result of an accident. This includes damages to the passenger’s car or driver, if applicable, as well as the damages to the driver’s car or truck. Comprehensive coverage pays for the damages caused to both the vehicles involved in the accident as well as to any other property that was damaged by the accident. Usually the deductible on this type of coverage is not raised very high.