full-coverage car insuranceoffers the best protection and is always a good idea, you might feel comfortable dropping full coverage if you’re struggling to pay your premium or you drive an older, high-mileage, or low-value vehicle.
If you’re wondering about full-coverage car insurance , how much it costs, and whether or not you should drop it, here’s what you should know.
Is full coverage car insurance necessary?
While full-coverage insurance isn’t
required by any state, it’s always a good idea.
Yes, it’s necessary
Full coverage is usually required if you’re leasing a car or paying off a
car loan. Lenders typically insist that you keep full coverage until you own the vehicle outright to minimize their risk.
It’s a good idea
Even if you aren’t required to maintain full-coverage insurance, it is definitely the most recommended option because of the added protection it offers you and your vehicle.
liability insurancecovers damages to other drivers but won’t cover damage to your car—full coverage will.
You can consider dropping it
You might consider dropping full-coverage insurance if:
- You rarely drive your car
- You can’t afford full coverage
- You drive an older car with high mileage and little value
Even in these situations, having full-coverage insurance is the only way to adequately protect your vehicle (and yourself from potentially expensive repairs).
Do I need full coverage on my used car?
This depends on the value of the car and its replacement parts. It’s important to do your research on the model and consider factors like mileage, vehicle condition, add-ons, and even your location in order to
determine the value of your used car.
If the cost to replace the car is less than the cost of your premium, you may be able to go without full coverage.
What is included in full coverage insurance?
To start, full-coverage insurance includes basic coverage, which is the non-negotiable part of your insurance. This differs by state, but you are typically required to have some combination of the following:
Helps cover the other driver’s medical expenses and related costs when you are at fault for an accident.
Covers the costs associated with damage to another person’s vehicle or property when you are at fault for an accident.
Helps pay for lost wages, hospital stays, vehicle repairs, and property damage sustained during an accident where the other driver either does not have car insurance or cannot cover the expenses.
Covers the cost of injuries to you or anyone else in your vehicle during a car accident. This can include expenses like medical bills and lost wages.
- Collision insurance covers damage sustained from a collision with another vehicle or a stationary object, such as a tree, telephone pole, or fire hydrant.
- Comprehensive insurance helps cover the cost of replacing your car if it’s stolen or repairing your car if it gets damaged by anything other than a collision. This can include things like vandalism, extreme weather conditions, fire, or falling objects.
- Gap insurance is short for guaranteed asset protection. If you get in an accident and total your car, it covers the difference between the amount you still owe on your car loan and the car’s actual cash value.
Key Takeaway Basic liability insurance protects other people and property if you are at fault for an accident, but it doesn’t cover damage to your car. Full coverage protects your car after a collision or a number of other unexpected incidents.
How much does full coverage cost?
Premiums for full-coverage insurance vary depending on many factors, including your demographics, driving record, age, and location.
Here’s what drivers pay in various states before and after switching with Jerry.
Price before Jerry
Price after Jerry
Can I drop just collision, comprehensive, or gap insurance?
Depending on your individual situation and your desired level of risk, dropping just one of these options might make more sense than dropping full coverage completely.
- You might feel comfortable enough to go without comprehensive coverage if you regularly park in a garage. If your car is protected from trees, weather damage, and animals, your risk of car theft and non-collision damage will be lower.
- You might feel comfortable dropping collision coverage if you rarely drive or if your car is worth less than your collision deductible. If you can afford tobuy a new carin the event of an accident, you may also be able to go without collision insurance.
- If you’ve owned your car for more than two or three years, you can probably survive without gap insurance. At that point, the car’s value will usually be greater than what you owe.
Key Takeaway Whether dropping coverage makes sense depends heavily on personal factors, including your financial situation, the age of your car, and your risk level as a driver.
How to find cheap car insurance
If you want to save money on full-coverage car insurance,
Jerryis a good place to start. A
trustworthy insurance shopping super app, Jerry handles all the hard work of comparison shopping for you—from finding the cheapest quotes from name-brand insurers to finalizing the paperwork to helping you cancel your old policy.
And to ensure you always have the lowest rate, Jerry will send you new quotes every time your policy comes up for renewal, so you’re always getting the coverage you want at the best price. This level of service is why Jerry earned a 4.6/5 rating on the App Store and made it the top insurance app in the country.
"UsingJerryis a super straightforward process, and at each step, you can see exactly what coverage you’re paying for. Thanks to Jerry, I’m paying $900 less each year while keeping full coverage for my new car!" ––Martin H.
Haven’t shopped for insurance in the last six months? There might be hundreds $$$ in savings waiting for you.
Judith switched to Progressive
Saved $725 annually
Alexander switched to Travelers
Saved $834 annually
Annie switched to Nationwide
Saved $668 annually