Does AAA offer full coverage insurance?

You need full coverage if your car is leased or financed. Full coverage car insurance is not required by law, but lenders and lessors generally want it, and it is a good idea to maintain full coverage if you cannot afford to repair or replace your car in the event of a total loss.… read full answer

How to Decide if You Need Full Coverage

You should consider your car’s value and your location when deciding if you need full coverage. If you own your car outright but it’s particularly valuable, your full coverage premium is likely a good investment compared to the car’s worth.

Similarly, even if you could afford to repair or replace the vehicle, it’s smart to keep full coverage if you live in an area with frequent collisions or thefts. After all, full coverage usually refers to a policy that includes collision and comprehensive coverage in addition to the state’s minimum required insurance.

If you are trying to save on your premium but cannot drop full coverage, you might be able to raise your deductible, as long as it isn’t dictated by your insurer or lender. But bear in mind that you should always choose a deductible that you’ll be able to afford in the event of a claim.

If you don’t keep full coverage on a financed car, you could be held responsible for paying for the vehicle in its entirety in the event of theft or an auto accident. You could also lose the car to the lender you signed a contract with if you don’t keep full coverage on your financed car.… read full answer

Nearly all lenders require that drivers carry full auto insurance coverage when they initially finance a vehicle. Lenders also usually stipulate in the contract that some form of full coverage is to be maintained for the life of the loan. Auto lenders impose the full coverage requirement because they want the vehicles they finance, which are technically still their assets, to be protected with the most insurance coverage possible so they can collect the vehicle’s value in case of an accident or theft of the car.

So, if you don’t keep full coverage on a financed vehicle, whether because you miss payments or you purposefully cancel the coverage, you’re likely in breach of your contract. Your insurance company or the DMV may contact the lienholder (lender) to alert them of the change, at which point your lender can legally cancel your contract, request full payment of the loan, or even repossess the vehicle.

Sometimes, if your lender finds you’re not keeping full coverage on a financed vehicle, it will contact you to give you a chance to have it reinstated. If you fail to do this, your lender could purchase an auto insurance policy for the vehicle and add it to the cost of your loan in what’s called “force-placed insurance.” These policies are typically expensive.

Ultimately, it’s best to keep full coverage on a financed car until you own it outright. Only then can you choose the level of car insurance coverage you want, as long as it meets your state’s minimum requirements.

AAA is so cheap because the company offers a wide variety of discounts that almost anyone can get. A minimum coverage policy from AAA costs an average of $66 per month, and AAA premiums can be made even cheaper by taking advantage of discounts such as paid-in-full discount and safety inspection discount. Plus, AAA rewards customer loyalty with discounts for insuring more than one car and bundling multiple policies, such as home and auto.… read full answer

Average Monthly Rates for AAA vs. Top Competitors

Note: Premiums are representative of a 45-year-old good driver in CA; individual premiums will vary.

AAA is especially cheap for safe drivers in particular. That’s because AAA has special savings opportunities for drivers in this category, such as discounts for driving responsibly while using the AAADrive telematics program.

Your final premium is based on a variety of factors, though, such as your driving record, insurance history, and more. Every insurance company determines their rates differently, so even though AAA is among the cheapest car insurance companies, the only way to confirm you’ve found the lowest price is to compare quotes from multiple companies.

To learn more, check out WalletHub’s review of AAA and see AAA’s full profile.