Auto insurance is a necessary, and in most states mandatory, purchase for any automobile owner in the United States. Every financial institution requires that a vehicle with a loan must be covered by some form of auto insurance before it can be driven. The financing bank or lender has to be named as an insured party on the policy to insure that payments received for damages are used towards repairs. States also require that any driver who has been convicted of a crime such as driving under the influence carry insurance before they are allowed to drive. Each state has its own insurance regulations and some states also have approval power over the rates that are established. Finding cheapest full coverage car insurance rates will require research into the particular regulations in place where the car is to be driven and insured.
All major auto insurance companies offer on line quotes and several websites allow buyers to compare the rates from many large insurers. Cheapest full coverage auto insurance includes coverage for personal injury, uninsured motorist, liability and casualty as well as damage to the automobile. Every policy carries some amount of deductible that first must be paid out of pocket before insurance coverage will begin paying. These deductible amounts will vary with the type of policy and the premium level. Several insurance companies such as State Farm now have a vanishing deductible policy that reduces the amount of the deductible by a certain percent or amount each year that a driver is accident and violation free. These policies will generally cost more and are not considered among cheap full coverage auto insurance quotes and policies.
The definition of full coverage car insurance normally includes a total package with comprehensive personal injury and liability to cover damage to the operator’s vehicle and any property that may be damaged in an accident. This property may include another motor vehicle, a house or building that is struck or damaged, real property or personal property that may be damaged in an accident. Personal injury coverage will cover the operator of another vehicle, any passenger in the covered motor vehicle including the operator and any other person that is involved such as a pedestrian. There are limits of liability on every policy and these limits are established as the upper amount that an insurer will pay out in the event of a claim.
Cheap full coverage auto insurance quotes normally are available on policies that have the higher deductibles and the lowest aggregate coverage limits. For example, a policy with a $2,000.00 deductible and aggregate limit for comprehensive coverage of $300,000.00 will cost less than a policy with a deductible of $500.00 and aggregate limits of $500,000.00. Standard policies will normally carry deductibles of $1,000.00 and aggregate limits of $500,000.00 to $1,000,000.00. The premium rates on these policies will vary by state and location in a state.
There are many considerations that insurance companies use when determining a premium. A driver’s individual driving record of moving violations and accidents is considered first. The age of the driver is also a factor. The location of the car’s primary residence and the distances driven daily are also factors that go into setting a premium rate. Persons who drive longer distances in or through congested traffic areas are more likely to pay higher rates than experienced driver’s in rural locations who drive short distances to work each day. Elderly and young drivers will normally pay a higher premium than a middle aged driver.
Finding cheapest full coverage auto insurance rates depends on many factors. States such as Louisiana, with the highest rates in the United States, will always be more expensive than New Hampshire or Maine where much driving is rural and coverage limits are less stringent.