If you are thinking about buying “full coverage” auto insurance, you may be thinking about making the right decision. As the amount of situations increase in which being fully covered is necessary, having adequate car insurance is crucial.   While the definition of “full coverage” varies from company to company, most full coverage policies have this in common – they include all of the major coverage types – liability, comprehensive, collision, and underinsured motorist coverage.   By having all this coverage, you will be protected for almost all of the situations that you could find yourself in with your vehicle, essentially making you “fully covered”.

As it stands now, all but two states have laws in place making it mandatory for motorists to carry a minimum amount of liability insurance on their vehicles. However, this does not necessarily include uninsured motorist protection, and car insurance companies are strongly urging drivers to make sure that they are covered for this contingency. Here’s why…

Insurance Coverage Statistics

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Full Coverage Auto Insurance Guide (Image Source – FLICKR)

According to some sources, as many as two out of every ten drivers on the road fails to carry insurance coverage on their vehicles. The official estimate, according to the Insurance Research Council, is slightly more conservative, putting the figure at around 16% – which to the general public, still poses high risk. Auto insurance violators tend to increase as economic conditions worsen, which is to be expected; studies indicate that for every 1% increase in the unemployment rate, there is a 0.75% increase in the number of uninsured motorists.

Who are uninsured motorists? A 1999 report from the California Department of Insurance said that the typical driver who lacks any sort of car insurance policy is likely to have the following characteristics:

  • a renter as opposed to a homeowner
  • earns less than $20,000 a year
  • male
  • aged between 18 and 24 years
  • is Hispanic or African-American
  • has resided at his current address for a shorter time

Has any of this changed over the past decade? This is very likely to be the case as the vicious war on the American middle class and working people continues unabated, forcing economic hardship on average people so that the top 2% can live in increasing luxury.

Solutions For Lack Of Coverage

In recognition of the problem, the State of California created a program that has been available throughout the state since 2007. Under this program, a family of four with an annual income of less than $53,000 can receive subsidies that allow them to get a very basic liability policy for under $400 a year, or about $35 a month. It is by no means the best car insurance, but it offers some protection.

In the meantime, unless you have full coverage auto insurance, you need to check your own policy to make certain you are covered in the event that you are struck by an uninsured driver. Otherwise, you may wind up bearing the costs for your own injuries and loss of property yourself with no other recourse except to sue in civil court – and considering the economic status of the typical uninsured motorist, it is unlikely you would be able to collect anything.  This is why we recommend all of our customers buy enough auto insurance.  Continue reading below to learn more about the importance of being fully covered, and also how you can buy a full coverage auto insurance package online.

Why You Need Full Coverage Auto Insurance

Hopefully, by now you are already thinking about the importance of having adequate coverage.  Before you get quotes online or call up your insurance agent, you may be asking yourself the following questions: Should you purchase a liability only policy, or opt for full coverage? What about medical and legal expenses?

While we have already touched upon one of the reasons why being fully covered is important, the lure of getting bare minimum coverage is always there. The convenience of getting a car insurance instant online quote can often lead buyers into simply choosing the cheapest policy. But while budget car insurance can be fine under the right circumstances, there are 4 major reasons to consider a full coverage policy:

1. Can You Afford Out-of-Pocket Expenses?

This is a major consideration, as many policyholders have been driven to bankruptcy or forced to go without a car after a motor vehicle accident. Unless you make a diligent effort to save up the cash value of your car, you could be without a car and no replacement cash if you are involved in an at-fault accident. Can you afford to go without a car? Can you afford to replace your car? If you cannot handle these out of pocket expenses, then it’s time to get a full coverage policy.

2. Can You Afford Medical and Legal Bills?

The typical liability only policy only carries around $40,000 in coverage for another driver’s medical and legal bills. But compare that amount to the typical attorney’s fees (around $300 per hour) and the average cost of one night in the hospital (between $3,000 and $5,000 depending on the level of care needed). So you can see that a liability policy may not meet the costs of another person’s care if you are involved in an at-fault accident, which means you could be opening yourself up to the possibility of a lawsuit.

3. Can You Afford Your Own Attorney?

What if the other driver doesn’t have insurance, and is at fault? What can you do? Can you afford to cover your own costs, such as medical care, lawyers, and a rental car? These out of pocket expenses can be extreme, and lawsuits can take months—if not longer—to settle. So protecting yourself with a full coverage policy may be the best way to in the event of a motor vehicle collision. A direct car insurance company can help set you up with a policy that will cover all your needs in the event of an accident.

4. How Much Is Peace of Mind Worth?

You can’t really put a price tag on peace of mind. If you have ever been involved in a car accident—even just a minor fender-bender—then you know what a drain it can be on your financial and emotional resources. If you have a robust savings account and a car that is worth less than $1000, maybe a full coverage policy isn’t your best option. But if you want the peace of mind that comes with knowing all your bases will be covered if you are hit by another driver, then a full coverage policy will be your best bet.

How To Find Full Coverage Auto Insurance Online

Now that you are interested in buying full coverage insurance, and are looking to make your auto insurance purchase online, you may be overwhelmed by the sheer number of options available to you. The first and most important tip to remember when buying an auto insurance policy online is that you should not purchase a policy from the first company you come across. If you purchase the first policy you find you could be spending too much money on the policy, never knowing if you could be spending less with a policy from another company. So what does all this mean? The answer is simple: shop around before making a decision. You would not walk onto a car lot and tell the salesperson that you would like to purchase the first vehicle that you lay your eyes on because this would not be good for your wallet.

When you come across a website or two that you like (such as Insurance Panda), enter your personal and vehicle information into the website’s free quote form. After the quote is returned you can make an informed decision as to which quote is best for your vehicle and your budget. You can either signup for one of their policies on their website or contact a customer service representative to sign up for a policy over the phone.

Always beware of scams that can arise on the Internet when shopping for auto insurance online. Make sure you do your research before trusting a website with your personal information and financial information. If you do not trust any of the websites you are browsing, consider logging onto a national auto insurance company’s website – one that is well known by drivers all over the country. These nationally known companies will have policies that cost more than the smaller companies but they have websites that you know you can trust when entering in your personal and financial information.

Another way to figure out if a web-based auto insurance company is legitimate is to bring a quote from their site to your lawyer or financial advisor. Either of these two people can help you determine whether or not the auto insurance company is legitimate or if it is a scam. These two professionals can also guide you towards a trusted auto insurance company’s website where you can find coverage that is still within your price range but does not skimp on the benefits and services they offer to their customers.

At Insurance Panda, we offer a free quote service for all of our visitors.  We offer insurance policies of all shapes and sizes – full coverage and bare minimum coverage included. To start getting these quotes and to compare rates from different companies – enter your zip code in the quote box above or click the banner below.