Cheapest Full Coverage Car Insurance 2022 – Forbes Advisor

Full coverage car insurance usually includes liability, collision and comprehensive insurance. Here are the details of each coverage.

Car insurance Liability

Car liability insurance pays for injuries and property damage you accidentally cause to others with your car. For example, if you accidentally crash into another car, injuring the driver and damaging their car, your liability insurance pays for their medical bills and the cost of repairing their car up to your policy limits. Liability coverage also covers judgments or settlements and legal defense costs if you are sued in a car accident.

Car liability insurance is shown as three numbers, for example 50/100/50. These numbers represent the maximum payout limit for each part of your liability coverage.

50/100/50 translates to:

  • 50 refers to $50,000 of personal injury liability to a person injured in an accident.
  • 100 refers to $100,000 of personal injury liability total for a single car accident.
  • 50 refers to $50,000 property damage liability per accident.

Your state will have a minimum amount of liability that you must carry. Most state minimums are woefully inadequate, especially if you cause a serious or multi-car accident. It’s smart to buy higher limits, like 100/300/100, to better protect – and assets that could be taken from you in a lawsuit.

Liability car insurance only covers those you have caused damage in a car accident. Liability insurance does not cover you, your passengers or your vehicle.

Collision and comprehensive coverage

The other main parts of a full coverage car insurance policy are collision and comprehensive coverage. They are separate covers but are usually sold together. Collision and comprehensive coverage pays to repair or replace your vehicle if it is damaged in an accident or non-collision incident.

Collision coverage. Pays to repair or replace your vehicle if it collides with another vehicle or an object, such as a fence or pole, regardless of the damage. Collision insurance also pays for upsets to your vehicle, such as accidentally rolling down an embankment.

Full coverage. Pays to repair or replace your vehicle if it is stolen or damaged due to fire, vandalism, flood, hail, animal strike, bad weather or falling objects.

For example, say your car skids on ice and hits a guardrail. Collision coverage will pay for the damage to your vehicle (and your liability coverage will pay for the damaged guardrail).

If your car is covered in hail and punctured with scratches, your comprehensive coverage will pay for the repairs.

Both collision and comprehensive coverage have a deductible, such as $500 or $1,000. The deductible is the amount deducted from your claim. For example, if an accident costs $1,500 to repair and you have a $500 deductible, the insurance claim payout will be $1,000.

Also, keep in mind that collision and comprehensive pay the depreciated value of your vehicle when you file a claim. This means that the maximum payout for a collision and comprehensive insurance claim is the value of your car just before the accident or damage, if totaled, minus your deductible.

Collision and comprehensive coverage are not required by any state, but if your car has a lease or loan, your lender will likely require you to carry both coverages.

What other covers can be included in a full cover policy?

Some states require other coverages to be part of your auto insurance policy. Common coverages required by the state include uninsured motorist coverage, personal injury coverage, and medical payments.

Uninsured motorist coverage

Uninsured motorist coverage helps pay for injuries to you and your passengers and for damage to your vehicle when the at-fault driver is uninsured. Usually, if you are involved in a car accident where the other driver is at fault, their personal injury liability coverage will cover the medical bills of you and your passengers. However, if the person is driving without insurance, uninsured motorist coverage would help cover these medical expenses.

Uninsured motorist coverage is sold in limits that match your liability coverage. Some states require uninsured motorist coverage, while others make it optional.

Personal injury protection and medical payments

Personal Injury Protection (PIP) coverage helps cover the medical expenses of you and your passengers, no matter who caused the car accident. PIP insurance also pays for lost wages and replacement services, such as child care, if you are unable to do so because of your injuries. Some states require PIP, while in others it is optional or not offered.

Medical Payments (MedPay) coverage also helps pay medical bills related to a car accident for you and your passengers, regardless of fault. It is required in a few states, but optional in most, if any, offered.

To build your full coverage insurance policy even further, there are other types of car insurance coverage that you can add on. Optional covers that give you extra protection include rental reimbursement, roadside assistance and breakdown cover.

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