You probably know that adding insurance coverage means higher premiums. But how much does buying full coverage add, and what do you get for it? Keep reading to find out.
Where Can You Buy Full Coverage Car Insurance?
You can’t go out and buy a car insurance policy called “full coverage.” There’s no such thing. What you’re really doing is opting in for all of the different coverages with high limits.
You can get full coverage from almost any car insurance provider since each coverage option is pretty standard. You just need to review your options. One company might propose a low-cost policy that doesn’t give enough coverage, while another may include coverage that duplicates your other insurance policies.
What Does Upgrading to Full Coverage Cost?
Your car insurance premiums are based on several factors, including your age, driving record, coverages you select, deductibles, and policy limits. If the insurance company views you as a riskier driver, you’ll pay more. If you opt for more coverage, you’ll also pay more.
There is no set pricing scale, and most insurance companies have their pricing formulas. You’ll often find one gives you a much better price than the others for identical coverage. The good news is that the more coverage or higher limits you have, the cost per dollar of coverage you’re adding often drops. That’s because a $10,000 fender bender happens much more frequently than a $100,000 major crash or a $1,000,000 accident with critical injuries.
Do I Need Full Coverage?
There are two main things you want to protect in an accident. One is your house and other savings from a lawsuit. The other is your future income if you don’t have enough assets to pay a judgment, and a court decides to garnish your wages. Therefore, you’d typically want insurance coverage that’s at least the value of everything you own today plus what you expect to earn in the future.
This does not have to be all from car insurance. For example, you might buy a personal umbrella liability policy as secondary liability coverage rather than continuing to increase your car insurance liability limits. However, you may have holes in your other insurance that car insurance can cover such as your health insurance deductible or services that your health insurance company excludes.
How Do I Choose an Insurance Policy?
When you’re trying to decide on your insurance coverage, it can be hard to figure out how much you need and how all of your coverages fit together. That’s especially true when insurance companies are trying to make a sale. Working with an independent insurance agent, who’s paid to do what’s right for you not to sell for one insurance company, can help you answer those questions.
Contact us to learn more about how to make sure you’re fully covered.