Bargain hunting can be fun and rewarding, but before you go for the cheapest car insurance policy, consider the cost of a bad decision. Buy a dud product at the 99-Cent store and you’ve lost a buck. Buy inadequate auto insurance coverage and you could be in big trouble. Your goal is to get the best auto insurance at the best possible price. Here are some questions to help you do that.
Do you understand how much coverage you really need? Every state has different minimum auto insurance requirements, but almost all states require that you carry liability insurance. This is the automobile insurance that covers you against costs resulting from damage or injury to the other party in an accident that is your fault…and yes, you need it even if you live in a no-fault state. Find out the specific by checking your state’s department of motor vehicles’ website.
Do you have a lot to lose? For instance, if you own property that could be awarded in a law suit against you, you should consider additional automobile insurance to protect your assets. Let’s say you buy $30,000 worth of bodily injury insurance but have a home worth $250,000. You cause an accident and the injured party racks up $100,000 in medical bills. Guess where his attorney are going to make up the difference.
Do you have a good driving record? Take that into consideration when choosing your deductible. Why pay a higher car insurance premium to carry low deductible if the odds are in your favor against filing a claim?
Do you really need collision coverage? If you’re driving an older car and have a good driving record, you may want to pass on this. If your car is new or valuable, sign up.
Do you drive a car that’s statistically targeted by thieves, such as a Honda Accord? You’re going to want enough car insurance to cover the replacement cost.
Also keep in mind that while your personal health insurance policy may cover you in the event of an accident caused by you or an uninsured driver, it won’t cover your passengers. The Medical Payments insurance option is well worth the peace of mind you’ll derive from knowing that everyone in your car is immediately covered for bodily injury regardless of who caused the accident.
Are you detail-oriented? Unless you’re committed to really reading and understanding the copious fine print on your car insurance policy, you may want to consider going through an agent. You’ll pay a bit more to cover commissions, but you’ll get hands-on, personalized service and auto insurance tailored for your specific needs.