In almost every state in the nation, you must purchase car insurance. Most drivers carry car insurance, but some people only buy the minimum required amount. Should you purchase more car insurance, or do you have enough? It all depends on your car, your driving habits, and what you need to pay for the costs associated with an auto accident. Here are some tips to help you understand car insurance and why you need to purchase a policy as soon as possible.
Collision and Comprehensive Coverage
What are collision and comprehensive vehicle coverage? If you drive an older car with a low market value, you may not purchase additional coverage options as it might be cheaper to buy a new vehicle than repairing your old one. However, collision coverage will pay for damage done to your car when a car accident occurs. What happens if someone injures you during a minor fender bender and they leave? You can file a claim with your insurance company to pay for the damaged rear bumper and medical costs associated with the accident. Collision insurance is a smart, affordable well to stay protected. Comprehensive coverage is designed to pay for damages to your car due to natural disasters, vandalism, or theft.
Different Driver Coverage
How often do you lend your car out to another person? When someone borrows your car, you are taking a risk. The right auto insurance coverage will cover claims associated with a wreck that occurs when someone else is operating your vehicle. Collision insurance is the most commonly used coverage option due to different driver accidents. You will need to pay your deductible and file a claim to your insurance provider. Depending upon the extent of damage and possible injury to another person, your friend or loved one may need to file a claim with their insurance to pay for these costs. Any time you file a claim, be prepared for your auto insurance rates to increase.
Lower Cost Car Insurance
The cost of insurance premiums can be reduced due to the type of car you drive. Some of the ways you can receive discounts on auto insurance include:
Age - Your age will determine the costs of car insurance. Older drivers and new drivers (teenagers) often see higher premium costs due to risk. Safety features on cars will provide discounts. Older cars could cost less if their parts are easy to replace, but we often find the older the car, the harder it is to obtain affordable rates due to difficult replacement parts and costly repairs.
Make and Model - Like your car’s age, your vehicle’s make and model can change rates. Specific auto makes will cost more such as luxury vehicles or sports cars. Specialty cars require expensive repairs and most auto body shops are unable to provide repairs on high-end vehicles.
Theft Risk - Do you have a car that is parked outside? Does your car have anti-theft protection? If your vehicle is at risk for theft, you will pay more money to insure the car. Review the list of frequently stolen vehicles before purchasing a new vehicle to find one at a lower risk of theft.
While car insurance is required by law in most states, it is one of the best financial decisions you can make. Car accidents are unpredictable, which means you can face devastating costs when a large accident claim occurs. Managing and paying for repairs is costly enough, but adding in the medical costs can be devastating. Review your current auto insurance policy to ensure you are getting the best coverage for your needs.