Motor vehicle insurance protects you, the driver, from financial loss that can result from a car accident. A comprehensive policy protects against damage caused by things like fire, theft, vandalism, natural disasters, and collisions caused by animals. Comprehensive policies often include liability coverage, uninsured and underinsured motorist coverage, property damage, and collision coverages. They typically exclude coverage for medical expenses, personal injuries, intentional injury, recreational activities, and alcohol use. When shopping for car insurance, it’s very important to compare the various types of coverage that you want. You might consider asking yourself the questions below:
Am I required to carry minimum insurance requirements or just paying a premium?
Some states require drivers to buy cars with specific insurance requirements. Other states only let you buy what options you want and force you to spend whatever amount you want on your premiums to match those optional costs. Regardless of whether you have specific requirements or not, you won’t enjoy being stuck without insurance if something bad happens. That’s the reason that it’s important to understand your coverage options in detail before purchasing a car insurance policy.
Does my insurance company offer discounts, or do I have a choice of insurers?
It never hurts to shop around for insurance rates. Most companies give discounts off of base rates to customers who purchase policies online, renew early, and are current on payments. You might also have the opportunity to pick and choose your carriers. This will allow you to decide which options you prefer, making it easier for you to customize an insurance plan that matches what you need. This saves you money, time, and hassle when dealing with paperwork and claims process later down the road, after an accident or claim occurs.
Can I save money by choosing less expensive coverage options or higher cost options?
You shouldn’t think that a lower priced coverage option automatically equals worse coverage. Many insurance companies offer discounts off of high end plans, and they charge less for higher risk customers. If you know that you usually have good driving record, then you probably want auto insurance that you will pay more for. However, if you know you have a poor history on the roads, then you might benefit by going with a lower paid carrier.
What if I want to cancel my existing insurance policy?
This is especially true if you have been working with one provider for a while. Sometimes your previous insurance carrier will cancel your auto insurance because it sees you as a riskier customer than usual. Even if that isn’t the issue, if you want to change insurance companies, go ahead. Chances are your old provider isn’t going to want to honor your cancellation, especially if you purchased optional coverage.
It pays to pay your bills on time and keep your credit score up too since your insurance policy benefits depend upon those numbers. Whether or not you have requirements based upon your state of residence or your past driving behavior.
Contact us today if you have questions about your comprehensive auto insurance.