Jan 11
15
Choosing Your Auto Insurance Coverage
Nobody enjoys paying their insurance premium. Have you ever cheerfully made a payment to your auto insurer? While insurance is one of those expenses we don’t want to overspend on, it’s also a necessary expense and we don’t want to find ourselves short on coverage.
Liability Coverage
It’s only recommended you get liability coverage only – if your car isn’t worth much. I wouldn’t recommend liability only on a vehicle worth $5,000 or more unless you’re in a position to deal with that type of loss. If you have the money to easily afford that loss, you probably have the funds to afford the comprehensive and collision. Liability only is better used for a vehicle worth maybe $1,200. Remember you must satisfy a deductible before any insurance company pays out on a collision or comprehensive claim. The deductible alone may be $500 or a $1,000 depending on which one you select at the time you buy your auto insurance.
Collision and Comprehensive
Mistakes happen and if you happen to be the negligent party in an auto accident, you’re going to be happy you have the coverage to repair your vehicle. Collision and comprehensive is sold together and covers your vehicle in the event of a collision, theft, fire, vandalism and several other perils. With this coverage as stated above, you will need to satisfy a deductible payment before any claim can be made. Without deductibles the insurance companies would have to handle too many small claims which would only result in higher rates across the board. Deductibles are generally $250, $500 and sometimes $1000 for Drivers who want to retain more risk for a lower premium.
Before you begin shopping online be sure to know how much coverage puts you in your comfort zone. Avoid shopping for too much or too little coverage. Find the coverage that works for you and comparison shop insurance companies to find the lowest price.