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Cheaper Full Coverage Car Insurance

Cheaper full coverage car insurance is a concern of pretty much every driver who opts for this type of auto policy. We all need to have car insurance, but full coverage is not generally mandated except in specific circumstances. Still, it does provide a nice foundation of protection for all of us who go this route with our policies. But protection is not the only thing we have to worry about as policy holders and consumers. Money is always a worry, and it is no different with auto insurance. Cheaper full coverage car insurance is something we'd all love to have. But at the same time, we don't want to sacrifice protection. Here is a quick primer on the relation of cost to coverage and the ways we can think about finding a balance between these two opposing needs.

Full Coverage is a Misnomer

First of all, it is important to address the term "full coverage" right off the bat. This term is somewhat fluid and can vary from person to person and from company to company. Full coverage in some areas just means the minimal policy specifications you need in order to fulfill the legal requirements for auto insurance in your home state. Every state is different when it comes to car insurance law. Some states have much more extensive requirements than others for its local motorists. So, the idea of a full coverage policy as defined here can vary from state to state.

This term can also mean a specific combination of plans. In many cases, this combination is the plurality of auto liability, collision, and comprehensive insurance. This combination reflects all three major areas of protection available for auto insurance consumers. Of course, there are other endorsements available on your auto policy, such as towing assistance or rental car plans. But liability, collision and comprehensive are the big three as far as auto insurance is concerned.

But even if you carry a policy with every available means of protection, the term "full coverage" is still misleading. Many consumers take the term literally and assume that if they carry this policy they will be protected no matter what. But there are still some significant and numerous coverage limits, even to a full coverage auto policy.

Common Policy Limits and Exclusions

For example, every policy is limited by the maximum monetary value of protection. Let's say you have a liability policy with $300,000 in multiple bodily injury protection. If you get into an at fault accident, there is certainly a chance that the financial cost of all medical care and associated expenses for the victims will far exceed this limit. You could end up in civil court for the balance of the cost. Pain and suffering, lost wages, and other expenses not even directly tied to the accident itself could you all come back to you. You could be held responsible for a huge chunk of change, and not even a quality policy with a fairly high liability limit like this is enough in every situation.

Another pertinent example is in the exclusions to insurance for a comprehensive policy. Like the term "full coverage", the name "comprehensive" also suggests completeness or an all encompassing nature that is simply not there. Let's say your car is broken into outside your apartment. If the car is stolen and not recovered, your comprehensive will pay out for your loss less deductible. But the payout itself is limited by the insurance company's assessment of the market value of the vehicle at the time of the loss. If the car was not stolen but only broken into, anything stolen that was not factory installed equipment will not be covered by so called comprehensive insurance unless you had a specific rider protecting you. So your radar detector and aftermarket CD player are a total loss.

Think about Coverage and Price

So when you're thinking about trying to find cheaper full coverage car insurance, don't just be content with the cheapest policy around. Make sure that you know what your insurer's idea of full coverage really is. Don't pay for cheap coverage if it barely provides any protection at all. And also recognize that any policy has limits. Don't purchase an auto policy expecting it to be a universal bandage covering any and all losses.

Cheaper full coverage auto insurance is a common concern among potential policy holders. But of at least equal importance is a proper understanding of what it is you're chasing after when you look for these cheap policies. Make sure you know what you're talking about and that the low cost plan you end up with isn't worthless. Full coverage can mean a lot of different things to different people. Make sure that you know the difference.


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