Those who own new or late-model autos commonly purchase full coverage auto insurance. All states require motorists to carry auto insurance, which shields the insured against financial liability for at-fault accidents or collisions. This universal legal requirement is really designed to protect other parties who may sustain injury or damage caused by third-party vehicular negligence.
Full coverage auto insurance provides an extra level of loss protection against damage or destruction of your automobile in collisions or accidents. In addition, full coverage encompasses losses sustained from auto theft or vandalism. Lenders require full coverage until your outstanding auto loan balance is fully paid. This protects the lender’s interest in the vehicle as loan collateral.
Full coverage provides added protection up to a specified maximum amount. Total losses include theft of your car or its complete destruction in an accident or collision. Occurrence of such an event would trigger payment of your car’s full value to you or your lien holder. The inclusion of full coverage increases your premiums due to the additional protection that it affords.
Full coverage premiums are universally higher than those for liability coverage alone; however, prices for identical coverage vary widely among insurers. Insurance is a competitive marketplace and comparison shopping is essential to obtain the lowest possible premium. Surprisingly, auto insurance premiums have steadily decreased during recent years. A National Association of Insurance Commissioners report placed the national average of auto insurance premiums at $817.43 USD in 2001, by 2007, that figure had dropped to $795.00 USD.
Full coverage auto insurance quotes are available online. Numerous search sites exist to provide multiple quotes for any coverage level desired. The information presented is up-to-date and derived directly from insurer databases. Side-by-side comparisons facilitate your final selection. After making a final decision, you may even purchase coverage immediately with a credit or debit card.
After purchasing full coverage auto insurance, maintain a good driving record and observe all traffic regulations. Security devices such as wheel locks or auto alarms further reduce your premiums. At policy renewal time, conduct a comparison shopping session again. The savings you stand to gain are worth the effort.