What is the average cost difference between full coverage and minimum coverage?

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Things to Remember...
  • Your gender, age, driving record and zip code all determine your insurance rate
  • The best way to get the best deal on car insurance is to shop around and compare rates
  • Full coverage is a combination of coverages: collision and comprehensive
  • Minimal coverage is general liability that varies from state to state

Many people may wonder what the average cost difference is between a full coverage car insurance policy and a liability only minimum coverage policy.

The average difference is hard to pin down because car insurance rates vary by several factors.

Enter your ZIP code into our FREE car insurance comparison tool to find affordable rates on a variety of coverage options!

Factors that Determine Car Insurance Rates

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Urban dwellers will find that they pay more for both full coverage and liability only auto insurance. Between the traffic and the higher crime rate in urban areas, car insurance companies generally charge higher rates to those policyholders who live in the city.

Your age is one of the factors that determine your auto insurance rates that you are required to pay. If you are under 25 years old, you are considered a higher risk driver. Unfair though it may be, your age works against you in terms of car insurance rates if you are under 25.

Your gender will also affect the car insurance premiums that you pay. Males are statistically higher risk drivers than females. Males generally pay higher car insurance rates than females of the same age.

Marital status affects your car insurance rates, as well. Married individuals tend to be rated as less of a risk than single folks in the same age group.

Your credit score affects the car insurance rates you will pay. Those with less than good credit are statistically more inclined to be more high risk drivers.

If you drive a financed or leased vehicle, you will be required to carry full coverage insurance. Your finance company or leasing company will require that the vehicle is covered to insure them against possible loss.

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If you do not carry full coverage insurance, you may be in violation of the loan contract. Finance companies may assign an insurance policy to the loan if, for some reason, your insurance policy is canceled.

Full coverage insurance is a combination of coverage types. Full coverage is actually collision coverage, along with comprehensive coverage. Collision pays if you are in an accident with another vehicle.

Comprehensive pays if your car is damaged as a result of weather, vandalism or theft. Other types of policies, such as Gap insurance and Uninsured Motorist insurance may be included in a full-coverage policy.

The term “minimum coverage” is a tricky one. A full coverage insurance policy is also required to have a minimum of coverage, which is usually a bit more than the list price of the vehicle. When speaking about car insurance, however, “minimum coverage” usually refers to a liability only policy.

Each state determines the minimum limits of car insurance that a driver must carry in order to legally drive on the roadways. These minimum amounts of coverage for liability only insurance vary greatly from state to state.

Generall, a liability only policy is much less expensive than full coverage insurance. However, a driver with a good driving record may obtain a full-coverage policy for under $100 per month.

In most cases, the same good driver might pay $40 per month for a liability only policy. Rates vary greatly between the different car insurance providers.

Shop Around to Get the Best Rates

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Like any other product, car insurance products vary greatly by company. The best way to get the best deal on car insurance is to shop around and compare rates. Comparison websites make it easy to shop around and compare auto insurance rates.

Request free quotes from any of the auto insurance companies that cover drivers in your area. Auto insurance comparison websites take the work out of shopping around for the best car insurance rates.

In some cases, the car insurance provider’s contact information or email address is listed. You can call an agent directly to find out the details about full coverage and liability only policies.

An agent will be able to answer your questions about cost differences between the two types of policies. Use a comparison website to get all of the information you need to get the best deal on auto insurance. Enter your ZIP code into our FREE car insurance comparison tool to see good rates available to you!

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