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Average Cost Of Full Coverage Car Insurance – How Much Will You Pay In 2020?

Full coverage insurance is the annual insurance rate you pay for the insurance package that protects you against all accidents on the road. The price varies based on the car and the driver’s age and driving record. The shinier and newer the car is, the higher the premium on that car is going to be. The older the car, the lower the premium is going to be. Example: Lamborghini Huracan costs $5,000 a year to insure, while a Toyota Corolla can be under $2,000 a year. Age is a significant factor in the price of full-coverage insurance as younger drivers are deemed high risk by auto insurers. The highest premiums are paid by 16-year-olds: $2,593/year is the highest nation-wide average. The lowest premiums are paid by 55-year-olds – $494/year is the lowest nation-wide average.

Teens and early 20s drivers pay the highest rates! Auto insurers aren’t keen to insure 16-year-olds at low prices because they’re deemed high risk. Young drivers tend to drive recklessly and get in many car accidents. Drivers over age 25+ are considered lower-risk and consequently pay lesser premiums. However, prices spike after drivers reach 65+ years. The average cost of full coverage car insurance across the board for all ages is $200/month or $2,400/year. Each state will have their own mandatory requirements in terms of how much the insurer is supposed to cover clients for – there are minimums in liability coverage. This can spike the average price of auto insurance in a state. Only 7 states offer insurance without a down payment/first-month pre-payment.

Full-coverage is the most expensive auto insurance because it covers all state-imposed mandatory coverage plus additional coverage for all car damages. For example, the car will be insured even if a tree falls on it and the damage was done off the road. Full-coverage plans will vary by the state and the insurer, however, the average cost seems to be in the $2,000 range or $150-200/month. $2,000/year is a very high amount, but auto insurers offer the ability to add multiple people under a single auto insurance plan. This allows you to insure your spouse, children, parents and/or any person who drives your car. Adding named drivers increases the price but it provides coverage for the whole family. Inquire with your auto insurance provider for the ability to add named drivers to bring down the total cost of your insurance.

Full Coverage Vs Regular Auto Insurance

Full-coverage insurance can be three times more expensive than average insurance. Example: if full-coverage insurance in your state costs $200 a month, you could probably get insurance for your car for under $60 a month. The term full coverage entails that the policies in the coverage are going to exceed the minimum requirements that your state imposes in terms of liability coverage. The added protection provides safety for the other person’s vehicle damage and not just the policy holder’s – it extends the liability to both parties. Typical full-coverage plans include personal injury protection which covers all medical bills in the event of an accident. The better policies include coverage for uninsured or underinsured motorists on the other end. Note: The term full coverage can mean many different things. The important thing is to get the maximum coverage you need for your car in particular. The insurance has to be equal to the value of the car or even higher – not all cars require full-coverage insurance. You only need full-coverage insurance if your car value exceeds that of the annual plan cost. 

Average Cost Of Full Coverage Auto Insurance By Age

The younger the person the higher their premiums are. The youngest 16-20 year old category will pay the highest premiums (even on old cars). The rates get cut in half once a person hits into their early 20s and normalize between the ages of 25-55 when they’re typically under $1,000 a year. The rates increase after a person turns 65+ years old when their vision declines and they’re deemed high risk due to old age. The following are the average rates on auto insurance premiums based on age:

Age Average Yearly Premium

  • 16 – $2,593
  • 17 – $2,179
  • 18 – $1,870
  • 19 – $1,260
  • 20 – $1,102
  • 22 – $794
  • 23 – $732
  • 24 – $684
  • 25 – $608
  • 35 – $552
  • 45 – $525
  • 55 – $494
  • 65 – $515
  • 75 – $630
  • 85 – $778

Features To Look For In Full-Coverage Auto Insurance

The policies full-coverage insurance must include aren’t written in stone. In general, you can expect the policies will exceed the mandatory minimums imposed by the state – covering damages that are not related to driving. Each individual plan will contain comprehensive details about the collision insurance you receive. The following are the most common full-coverage policies to look for:

  • Car damage caused by weather (falling trees, hail, tornadoes, hurricanes, etc)
  • Protection against theft and vandalism
  • Animal impact on the road
  • Collision insurance for all damages if you crash into another car or they crash in yours
  • Driving into stationary objects (trees, lights, road signs, etc)
  • Your car is subject to a hit-and-run

Note: All full-coverage insurance policies have deductibles. Deductibles are the amount the insurer will subtract from your payout once you make a claim. If your deductible is $2,000 and your car is valued at $10,000, the insurer will only pay you $8,000. Consult your insurer to learn more about the deductibles on your plan.