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How To Find Cheap Full Coverage Car Insurance in English 2022

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How To Find Cheap Full Coverage Car Insurance in Hindi 2022 : Full coverage car insurance costs more than just a policy with your state's minimum car insurance requirements. However, this additional coverage can play an important role if you get caught in a car accident.


Car Insurance
Car Insurance

This is because full coverage insurance helps pay for car repair bills if you get into an accident and if you cause an accident that injures others. A good car insurance policy can help put your mind at ease.

The term "full coverage car insurance" does not refer to a particular policy type, rather it refers to a policy that includes liability, collision and comprehensive insurance. These three coverage types form a solid foundation for a car insurance policy. Here's what they cover:
Liability Insurance: For accidents in which it is your fault, liability insurance covers injuries to the other party and the cost of car repairs. It also pays for your legal defense if you are sued for a car accident.
Collision Insurance: Covers the cost of repairing your vehicle but does not cover the cost of second party vehicle damage. Collision insurance can pay for vehicle damage from another car, or a situation where you accidentally fall back into a pole or accelerate into a building.
Comprehensive Insurance: Covers car theft and damages to your car related to weather, fire, flood, sabotage and falling objects. It also covers damages caused by killing animals like deer.
Full Coverage Car Insurance Summary

LiabilityCollision Comprehensive

  1. Pays for the damages caused to others if you crash into their cars
  2. Covers damage to your car if you hit a pole, fence, house or other object
  3. Pays other people if you hit their fence, house or other property
  4. Covers your car theft
  5. Covers your car for fire, flood, vandalism and animal collision
  6. Covers damage to your car from falling objects like tree branches

How Much is Full Coverage Car Insurance?

Nationally, the average full coverage car insurance policy costs about $1,190 per year, according to the National Association of Insurance Commissioners.

Car Insurance
Car Insurance

The liability portion of an auto insurance policy is usually the most expensive component.

Coverage Average annual premium per year

  • Liability $644.11
  • Bump $377.62
  • Comprehensive $167.91
Source: National Association of Insurance Commissioners, 2020 Auto Insurance Database Report

What Does Full Coverage Car Insurance Consist Of?

Full coverage car insurance typically has three distinct components: liability insurance, collision insurance, and comprehensive insurance. Here's how each coverage type works.

Liability Insurance

All states except New Hampshire require car owners to purchase a minimum amount of liability car insurance. These minimum state requirements outline two types of liability insurance:
 
Car Insurance
Car Insurance

Bodily injury liability insurance covers the medical expenses of another party if you are at fault.
Property damage liability insurance covers damage caused to the property of another person in the event you were in an accident. This could include someone else's car, mailbox, fence, garden gnome collection or building.

Here’s an example of how liability car insurance works.

If you cause a car accident that results in physical damage and injury to the other driver's car, the other driver can make a claim against your liability insurance for car repair bills and medical expenses. Your liability insurance will also pay for legal defense, settlement and adjudication if the other driver sues you.

But there's a catch here. If you don't have enough liability car insurance, you could be on the hook for any amount above your policy limit. That's why it's important to buy more than your state's minimum requirements. For example, if you cause a car accident with multiple injuries, medical bills can quickly exceed the minimum liability requirements.

Consider minimum liability limits for $100,000 in bodily injury liability per person, and $300,000 per accident, and $50,000 and property damage liability. Drivers with higher incomes and/or significant assets should consider a higher amount if one decides to sue, as well as umbrella insurance.
Does liability insurance cover my car if someone hits me?

Your own liability insurance only pays others for damages caused by you. It will pay nothing for your own car or your injuries.

If someone else causes an accident, their liability insurance should cover damages and injuries to your car. But the other person's insurance will only pay for the limit they have purchased. If the accident was costly, their insurance might not be enough to cover all your bills.

In addition, many drivers hit the road without any auto insurance. If they hit you, they have no insurance to pay for the damage they cause. You can sue any other driver who caused the accident, but not all drivers have assets to use to pay the litigation verdict.

Collision and Comprehensive Coverage

Collision and comprehensive coverage are important to cover damage to your own car. Your liability insurance will not pay for any of your car damages. This coverage is optional if you own your vehicle as a lump sum. If you have a car loan or lease, expect to buy them.

Collision insurance pays for damage to your car from an accident with an object, such as a pole or railing. Comprehensive coverage pays for car theft and repairs due to weather, animal damage, vandalism, fire, floods and falling objects.

For example, let's say your car tires slipped on the ice and you ran into your neighbor's fence. Collision coverage will pay for repairs to your vehicle. Liability insurance will pay for the neighbor's fence.

If you drive on a flooded road, comprehensive coverage for car damage will pay off without realizing how deep it is.

Both collision and comprehensive coverage have deductibles, such as $500 or $1,000. This is the amount that is deducted from the insurance check if you make a claim.

What is Recommended for Car Insurance Coverage?

Creating the best auto insurance policy usually requires adding a few more options to full coverage car insurance: uninsured motorist coverage and personal injury protection. These types cover injuries to you and your passengers in different ways. These are required in some states.
uninsured motorist coverage

Uninsured motorist coverage helps protect you from people who are on the road without auto insurance. Generally, if you are injured in a car accident where the other driver is at fault, their liability coverage should cover your medical expenses. But if the other driver is not insured, uninsured motorist coverage will help cover your medical bills.

A similar coverage, the lesser insured motorist coverage, pays your medical bills when the other driver is at fault but you don't have enough liability insurance to cover your costs.

As with other types of auto insurance, these types pay up to the limit you choose. Buying a lower limit can mean that you still have outstanding bills after a costly car accident.
Medical Payment Coverage and Personal Injury Protection

Medical payment coverage (MedPay) covers medical expenses for you and your passengers, no matter who is at fault. This may include an ambulance, surgery, and X-rays. It is not available in all states.

Personal Injury Protection Coverage (PIP) will also help cover medical expenses no matter who is at fault. Some states require PIP insurance. In other states it is optional or not offered. PIP insurance can also pay for lost wages and get help for tasks you can't do because of an accident, such as child care.
Source: Forbes
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