Cheapest Full Coverage Car Insurance 2022 – Forbes Advisor

Cheapest Full Coverage Car Insurance 2022 – Forbes Advisor

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

Car liability insurance

Liability insurance covers injuries and property damage you accidentally cause to another vehicle. For example, if you accidentally hit another car, injuring the driver and damaging their car, your liability insurance will pay for their medical bills and car repair costs up to your policy limits. Liability coverage also includes court judgments or settlements and legal defense costs if you are sued in a car accident.

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

50/100/50 means:

  • 50 applies to $50,000 of personal injury liability per person injured in an accident.
  • 100 applies to $100,000 of total personal injury liability for a single car accident.
  • 50 applies to property damage liability of $50,000 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-vehicle accident. It’s wise to buy higher limits, such as 100/300/100, to better protect yourself — and the assets that could be taken from you in a lawsuit.

Liability insurance covers only those whom you cause damage in a traffic accident. Liability insurance does not cover you, your passengers or your vehicle.

Collision and comprehensive coverage

The other main parts of comprehensive car insurance are breakdown cover and comprehensive cover. They are separate covers but are normally sold together. Collision and comprehensive cover pays to repair or replace your vehicle if it is damaged in an accident or non-collision accidents.

Deduction coverage. It pays to have your car repaired or replaced if it collides with another vehicle or an object such as a fence or pole, regardless of the fault. Accident insurance also pays for a breakdown of your vehicle, such as accidentally rolling off an embankment.

Comprehensive coverage. It pays to have your car repaired or replaced if it is stolen or damaged due to fire, vandalism, flood, hail, animal impact, bad weather or falling objects.

For example, let’s say your car slides on ice and hits a guardrail. Collision coverage would pay for the damage to your car (and your liability coverage would pay for the damaged guardrails).

If your car is hail strewn with scratches, your comprehensive coverage would 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 check. For example, if repairs after an accident cost $1,500 and you have a $500 deductible, your payout will be $1,000.

Also keep in mind that collision and comprehensive pay out the depreciated value of your vehicle when making 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 total, minus your deductible.

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

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

Some states mandate that other coverages be included in your insurance policy. Common state-required coverage includes 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 car when the at-fault driver is uninsured. Normally, if you are in a car accident where the other driver is at fault, their personal injury liability coverage would cover the medical bills for you and your passengers. However, if a person is driving without insurance, uninsured motorist coverage would help cover these medical expenses.

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

Injury protection and health payments

Personal injury coverage (PIP) helps cover the medical expenses of you and your passengers, regardless of who caused the car accident. PIP insurance also pays for lost wages and replacement services, such as childcare, if you can’t because of an injury. Some states require PIP, while others make it optional or not offered.

Medical Payments Coverage (MedPay) also helps pay the medical bills associated with a car accident for you and your passengers, regardless of fault. It is required in a few states, but in most it is optional, if offered at all.

If you want to further develop your full car insurance policy, you can add other types of car insurance coverage. Optional covers that give you extra protection include rent reimbursement, roadside assistance and gap insurance.

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