Fully comprehensive car insurance nrmal
When asking how much does fully comprehensive auto insurance cost, it is important to first qualify the question by asking some things about your age, which state you live in, and what kind of car you drive. Without knowing the answer to these questions, it is impossible to say exactly how much does comprehensive insurance cost, but we can give you some basic ideas.
For the purpose of this article we will be using insurance in New York as our state of choice, and be saying that we are a male driver of around age 35. In order to get these figures, we used the New York State Insurance website’s Sample Premiums Tool, which lists over 30 insurance companies and the average premiums they charge for various different services.
What is Fully Comprehensive Auto Insurance?
At this point it is worth making a distinction between Comprehensive Insurance and Collision Insurance, or a Collision Damages Waiver
Comprehensive Insurance insures not only damage done by you to another party (like basic third-party insurance) but also damage done to your own vehicle. This comes in especially handy if you caused the accident, or if you are hit by an uninsured driver.
A Collision Damages Waiver applies only to rented cars, and is usually an expensive but advisable extra. Causing damage to a rental car can be very expensive!
So How Much Does it Cost?
The exact cost of fully comprehensive insurance varies greatly from one company to another, and so do cover levels. Each company has “minimum coverage” levels, some of which are higher than the state’s minimum levels. Assigned Risk Plan, for example, offers a very high level of cover as a minimum, and charges over $2,000 for plain third-party insurance. Adding a fully comprehensive option to that increases the cost by nearly $800.
That’s probably not insurance we’re going to be buying today. We’re looking more at companies like GEICO. GEICO’s price for minimum cover is $1,243 per annum, which seems a little bit steep, but their cover is good and they have a good reputation for treating customers well.
What makes their offer attractive, however, is that you can upgrade to fully comprehensive auto insurance for only $207, making your total premium $1,450. It is also advisable to add Property Damage cover up to $50,000 at $27 per annum, and No-Fault cover up to $100,000, which costs $38 a year.
This brings your total premium up to $1,515 per year, or $126 per month. Compare that to their most basic product, at $103 per month, and you can see that you’re only paying the price of a few beers and a burger every month to make sure you’re fully covered.
It may seem like a big add on to pay for the cost of fully comprehensive auto insurance, but it could save you a great deal of financial trouble if you cause a large accident, or are hit by an under-insured driver.
But Is It Worth It?
One question people often overlook is whether or not it is financially viable to buy this type of insurance. On the face of it, people will either take the cautious approach, and figure they’d rather have it and not need it than need it and not have it, or they decide that they’d rather take the risk. The problem here is that it is unlikely that either person has properly calculated the actual financial risk.
In order to do that, you have to take a look at the value of your car. In a year and a half, you will probably pay around $500 in extra premiums to cover your car in case anything goes wrong. Since you also have a deductible, you are going to be out a few hundred dollars either way, if you do need your insurance.
Let’s say your deductible is $300, and your very well-used car is worth only $700. If your car is totaled, you’ll have to pay $300, but your insurance company will pay the other $400 to have it replaced. However, if you’ve already paid $500 in insurance premiums, then your insurance company has still scored, and you’ve been left financially worse-off than you would have been had you simply had to replace the car.
What is comprehensive car insurance?
Comprehensive car insurance – also known as fully comp cover – is one of the higher levels of protection you can get for your motor.
Third-party only and third-party, fire and theft policies cover damage to others as the result of an accident that was deemed your fault. Any damage to your own car is your own problem.
Comprehensive car insurance policies, on the other hand, cover for damage to your car as well.
Why should I consider upgrading to comprehensive cover?
With comprehensive car insurance, you can claim from your insurer for accidents that are deemed to be your fault.
It also applies when fault can’t be proven, eg if you return to your car after shopping to find that someone has hit you and driven off.
Without comprehensive cover, you risk having to fork out for repairs yourself. Worse still, if your car is written off you’ll have to pay for a brand-new motor.
A comprehensive policy gives you that added level of protection and peace of mind that you won’t necessarily have to pay for expensive repairs – just your compulsory and voluntary excess.
Is comprehensive insurance more expensive than other policy types?
You’d be forgiven for thinking that a comprehensive policy is always more expensive than third-party only cover, or third-party, fire and theft.
This is usually the case, but not always. So when comparing policies it’s worth looking at the difference in price between comprehensive and third-party policies.
You may find that comprehensive insurance actually works out as cheap as a third-party policy. You may not need to compromise on your cover just to save a few quid.
Hang on. How come comprehensive cover is sometimes cheaper?
It’s because a lot of high-risk drivers tend to go for third-party cover as a way of lowering their insurance costs.
As a result, the statistics begin to skew towards a higher number of claims on third-party policies.
This means that the overall cost of third-party cover goes up. That’s why it’s worth checking the cost of all levels of cover, just in case.
Where comprehensive cover could fall short
Despite its name, a comprehensive insurance policy may fall short in some areas.
Certain policy extras may come as standard with some insurers, whereas others might charge you for the privilege.
It’s always best to check the policy details before you buy – don’t assume that you’ll be entitled to all the bells and whistles.
Two of the most common policy add-ons are:
Many insurers let you use another car while yours is being repaired, but not all of them. It’s also worth noting that courtesy cars usually aren’t provided if your car is written off.
Usually an optional extra that comes at a cost, though some insurers may throw it in as an incentive. If it doesn’t come as standard, it’s worth shopping round for the best breakdown deals.
Other ways to save on your car insurance
Car insurance often isn’t cheap, this is true. But going for a lower level of cover just to save money might be a false economy.
Having the minimum level of cover means that you might end up paying out more in the long run, especially if you’re involved in an accident where the fault is yours or can’t be determined.
If saving money is your main concern, there are a number of other ways to lower your car insurance costs.
Explainer Video (1:50): What Is Comprehensive Coverage?
Announcer (voiceover): Comprehensive coverage is available to protect you against vehicle damages not caused by a collision. For example, it may protect you against vehicle damages caused by:
Announcer (voiceover): Theft, vandalism, natural disasters, falling objects, fire, hail, flood, animal damage.
Announcer (voiceover): Why consider comprehensive coverage? Well, could you pay out of pocket for damages if, say, you hit a deer, damaging your car? If not, comprehensive coverage may be able to help you.
Announcer (voiceover): In some cases, comprehensive coverage might be required. For example, if your car is leased or if you still owe money on your loan, the lending institution may require this coverage. Check with your lending or leasing institution to determine whether it's required.
Announcer (voiceover): Even if comprehensive isn't mandatory, consider: Would you be able to afford to fix or replace your car if it was damaged by a hailstorm? The protection offered by comprehensive coverage can help set your mind at ease.
Announcer (voiceover): Something else to consider is your deductible amount—the money you have to pay out of pocket in the event of a claim. It's a good idea to set the deductible at a level you can afford to pay.
Announcer (voiceover): So, now you have a little more information on the benefits of comprehensive coverage, which can help protect you against vehicle damages not caused by a collision. In some cases, it may help protect against vehicle damages caused by: theft, vandalism, natural disasters, falling objects, fire, hail, flood and animal damage. Check with your lending or leasing institution to find out whether comprehensive coverage is required.
Questions? Contact an Allstate agent.
(Hand writes: www.Allstate.com)