The Ins and Outs of an Auto Insurance Policy
No one who drives a car can afford to be without sufficient auto insurance coverage, but a surprising number of drivers do not have the coverage they need to protect themselves, their property and those hey love. It is important for all drivers to make sure they have the coverage they need, and a periodic car insurance review is always a good idea.
A review of car insurance coverage should begin with the state mandated minimum coverage levels – but it should not end there. That is because many states set their minimum coverage levels extremely low. This makes car insurance more affordable, but it also leaves many drivers dangerously underinsured.
Just consider this – the minimum required liability coverage in some states is as low as $10,000, but there are many cars in those states worth far more than that amount. Carrying insufficient coverage could leave the driver on the hook for the remaining amount – certainly an uncomfortable position. Drivers in need of additional coverage may be pleasantly surprised at what they find. In many cases it may be possible to add significant levels of coverage for only a few dollars per month.
Another important consideration is the amount of the deductible for comprehensive and collision coverage. Accepting a higher deductible can result in significant premiums savings, so drivers may want to budget for the higher deductible and pocket the savings. By funneling the premium savings to a dedicated bank account drivers can insure themselves against loss and still enjoy excellent savings.
And when it comes to comprehensive and collision coverage it is a good idea to weight the cost of coverage against any potential benefits. Depending on the value of the car it may not be worthwhile to carry this type of coverage at all. In fact many experts recommend against comprehensive and collision coverage for vehicles worth less than $3,500. If there is an outstanding loan on the vehicle comp and collision may be required, but if the vehicle is paid off drivers may be able to enjoy significant savings by forgoing unneeded coverage.
Saving money on car insurance is not always easy, but with some research and careful shopping drivers can get the coverage they need at a price they can afford. Car insurance is an absolutely essential purchase, and one that no driver can afford to be without.