You have so many options when it comes to car insurance coverage. Some of them, like uninsured motorist coverage, are mandated by your state. However, you still have to choose different levels of coverage for that and for other kinds of policies. Your best resource is an insurance agent. However, even before you talk to your insurance agent, have in mind what some of your preferences are.
Decide on a Spending Allowance
Probably the biggest factor when it comes to car insurance is the cost. You have to decide how much you feel comfortable paying each month for the maximum coverage. On the flip side, you also should estimate how much out of pocket you can afford in the case of an accident. You pay more in premiums for increased coverage, but it also limits how much you have to pay up-front in the case of a claim. Be honest about your budget, and opt for the most coverage you can comfortably afford.
Choose Between Comprehensive and Liability
The two main types of policies are either comprehensive or liability. The latter comes with lower premiums, but it only covers the cost of damages to other vehicles when you’re at fault in an accident. There’s no payout for damage to your own vehicle.
Comprehensive coverage is usually combined with collision. Comprehensive coverage pays for non-vehicle related damage to your car, such as flood or hail. Collision covers damage caused by auto accidents and will usually even replace the value of your car. Such coverage carries a higher premium. CNN recommends carrying this level of coverage if your car is worth more than $5,000.
Consider Medical Payments Coverage
If you or your passengers are injured in an accident, and you have medical coverage, the insurance company covers reasonable medical expenses for anyone in your car. If you have no health insurance, or a very high deductible, this might be good coverage for you to consider. Likewise, if you commonly drive other people’s children around, or you’re otherwise involved in car pools, medical coverage is advisable. Note also that the coverage follows the vehicle, so anyone driving your car is covered even if you’re not involved.
Think about Adding Car Rental and Towing
If you don’t have AAA or another car club coverage, consider adding car rental and, especially, emergency road service to your main auto insurance policy. If your car is undrivable because of an accident, car rental coverage pays out for car rental. Emergency road service pays for conveniences such as locksmith services and towing. Adding this coverage is relatively inexpensive, but the pay-out can save you money in the long run.
Before talking to your insurance agent, such as Gateway Insurance, consider which levels of coverage best meet your budget and your overall needs.
Decide on a Spending Allowance
Probably the biggest factor when it comes to car insurance is the cost. You have to decide how much you feel comfortable paying each month for the maximum coverage. On the flip side, you also should estimate how much out of pocket you can afford in the case of an accident. You pay more in premiums for increased coverage, but it also limits how much you have to pay up-front in the case of a claim. Be honest about your budget, and opt for the most coverage you can comfortably afford.
Choose Between Comprehensive and Liability
The two main types of policies are either comprehensive or liability. The latter comes with lower premiums, but it only covers the cost of damages to other vehicles when you’re at fault in an accident. There’s no payout for damage to your own vehicle.
Comprehensive coverage is usually combined with collision. Comprehensive coverage pays for non-vehicle related damage to your car, such as flood or hail. Collision covers damage caused by auto accidents and will usually even replace the value of your car. Such coverage carries a higher premium. CNN recommends carrying this level of coverage if your car is worth more than $5,000.
Consider Medical Payments Coverage
If you or your passengers are injured in an accident, and you have medical coverage, the insurance company covers reasonable medical expenses for anyone in your car. If you have no health insurance, or a very high deductible, this might be good coverage for you to consider. Likewise, if you commonly drive other people’s children around, or you’re otherwise involved in car pools, medical coverage is advisable. Note also that the coverage follows the vehicle, so anyone driving your car is covered even if you’re not involved.
Think about Adding Car Rental and Towing
If you don’t have AAA or another car club coverage, consider adding car rental and, especially, emergency road service to your main auto insurance policy. If your car is undrivable because of an accident, car rental coverage pays out for car rental. Emergency road service pays for conveniences such as locksmith services and towing. Adding this coverage is relatively inexpensive, but the pay-out can save you money in the long run.
Before talking to your insurance agent, such as Gateway Insurance, consider which levels of coverage best meet your budget and your overall needs.
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