Full auto coverage is a necessity, but it doesn’t come cheap. Skimping on coverage to save a few bucks could wind up costing you more in the long run. Check out as many different insurers as possible to see which one works best for you.
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Understanding full coverage auto insurance
Certain lenders may require you to prove that you have car insurance before they’ll hand over money for an auto loan. They may use the term “full coverage” which doesn’t have a universal definition. Instead, the term usually refers to the minimum coverage that meets state law and protects your car.
Liability insurance, for instance, is a state requirement. Comprehensive and collision coverage assist with repairs. Other coverage, like uninsured motorist coverage, medical payments, or rental reimbursement, is optional. These additions may be useful, especially for high-risk drivers, but they could drive up the total cost of insurance.
How much is the cheapest full-coverage auto insurance?
Full coverage auto insurance can vary from person to person. Shop around for your insurance – a number of factors impact the total cost.
Age
Insurance rates are typically higher for younger drivers. Rates usually drop once you turn 25, which is the same age rental car companies start recognizing drivers as safe. The rate you pay at age 25 could be almost 50% lower than what you pay when you’re 18.
Senior Citizens
Senior citizens may also pay higher rates for car insurance. The period from age 25-74 typically has the lowest rates. Once you hit 75, your rates will start going back up.
State where you live
Each state will have different market rates for repairs and different laws on how much coverage you need. Factors like that mean the rate your insurance company charges for your auto policy will change depending on where you live.
Credit score (fair, good, excellent)
Having a good credit score may encourage insurers to offer you a lower premium. Creditors consider a score of 580 to be fair; a “good” score starts at 670; a score of 740 to 800 is very good; above 800 is excellent.
Some states don’t allow auto insurers to consider credit scores when deciding premiums.
After you get into 1, 2, and 3 accidents
Insurance companies will usually take into account who’s at fault for an accident before raising rates. If the crash was your fault, you may see your auto insurance bill go up by about $665 per year. Rate hikes vary depending on your auto insurer, and could be as much as 20-40%. Getting in more accidents will only make it go up even higher.
After you get a speeding ticket
A single speeding ticket might not make your auto insurance rate go up, but several of them will likely have an impact. The actual amount you wind up paying will vary, but Progressive says a speeding ticket can raise your rate by 15%. That’s partially because you may lose any discounts you had through a safe driver program.
After DUI
Some insurers will not give you a policy after you’ve gotten a DUI or DWI. Those that still do will see their rates go up. At Progressive, your first DUI will raise your rate by about 13% on average nationwide. Some law firms have found rates can go up by as much as a third. Other analysts believe it could go up closer to 70%, adding nearly $1,500 to your car insurance bill.
DUIs stay on your record for 3-5 years, depending on the state. After that, your insurance rate may go down again.
Gender
Men tend to get in more traffic incidents , especially deadly ones. As a result, auto insurers often charge men more than women.
A 25-year-old female driver will pay around $1,870 a year on average for her car insurance. A male of the same age could pay $94 more than that, with some companies charging the average 25-year-old male driver $1,964 a year.
For military veterans
Many large auto insurers offer discounts of up to 15% for military veterans. That may apply to those in the service, veterans, and people affiliated with certain military organizations. For example, Geico also has discounts for emergency deployments.
8 Ways to get the cheapest full coverage auto insurance
Full coverage auto insurance may be non-negotiable. Look out for yourself by making sure you’re getting the policy with the best coverage at the best price.
1. Compare quotes from multiple insurance providers
Remember that not all insurers have the same set of standards. The same amount of coverage for car insurance with one company might be cheaper with another.
2. Increase deductibles to lower premiums
Choosing to have a higher deductible in the event of an accident will lower your rate. This is a risky move, because if you get in an accident you’ll likely have to pay more out of pocket, but some customers might prefer lower premiums.
3. Look for discounts
Research what discounts different insurers offer. Some may knock a few bucks off your rate if you join certain programs, show you’re a good student, switch to paperless or automatic billing, and more.
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4. Bundle auto insurance with other policies
Bundling polices means getting coverage for different items through the same insurer, like home and auto. That can save you as much as 25% on your policy.
5. Know what to forgo
You can skip some coverage and save a few bucks on your overall policy. For example, if you have a backup vehicle, maybe you don’t need to pay for car rental reimbursement.
6. Maintain a good driving record
The better your driving record, the lower your insurance costs. Speeding tickets and other run-ins with the law will raise your rates.
7. Choose a vehicle with safety features
Safety features can lower your insurance premiums. Those include anti-theft devices, collision-warning technology, anti-lock brakes, and rear-view cameras. Since those tools lower the likelihood that your insurer will have to fork money over, they make you low risk and therefore lower your rate.
8. Improve your credit score
Make on-time payments, consider taking out a credit builder loan or other small loans, to hopefully increase your credit limit if it’s low. A higher credit score may get you lower auto insurance rates.
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Getting full auto coverage at affordable rates
The rate you pay for your auto insurance depends on a wide variety of factors. But you don’t have to simply accept your fate! You have plenty of ways to lower your rate and customize your coverage.
FAQ
Can I get full coverage auto insurance if I have a bad driving record?
Yes, plenty of insurers offer full coverage auto insurance even if you have a traffic ticket or two, at-fault crashes, or DUIs.
Can I customize my full coverage auto insurance policy?
Yes, you can add coverage to your auto insurance for extra fees on top of your full coverage policy.
Does full coverage auto insurance cover rental cars?
Your auto insurance will typically extend to any rental cars you may drive. However, you’ll pay an extra fee if you want your insurance to cover the cost of a rental car that you can use while your car is in the shop.
