The Importance of Choosing the Right Car Insurance Coverage
As a driver, you have a ton of options when it comes to insuring your vehicle. Each company offers their own benefits and incentives, but are they all relatively the same? As it turns out, choosing the right car insurance coverage can make an enormous impact in your life. Here’s what you need to know.
Liability and Property Damage
The first and most important aspect of choosing an insurance policy is ensuring that it meets your state’s minimum liability and property damage coverage. Thankfully, companies comply with state law to make sure you’re covered. Getting into an accident without these two critical components comes with enormous penalties and fines.
When reviewing liability, you’ll notice two numbers separated by a slash. If these numbers are 20/40, for example, that means your insurance will pay $20,000 per person in an accident and $40,000 per accident. Medical expenses are covered in liability along with pain and suffering.
When reviewing property damage, the number you see is how much your insurance will pay to cover the damage of property. That includes vehicles, city property, and any other obstacle damaged in the accident.
While you can save money each month with minimum liability and property damage coverage, victims of an accident can sue you for any amount not covered if you are held liable. Less coverage also means an increased cost to you in the event of an accident. You may be able to reduce your costs with skilled representation, like accident attorney Dan Rose, but any out of pocket costs from your insurance will remain.
It’s also important that you select coverage for you and your property. Physical damage is the first aspect to look at, which covers the cost of repairs in the event of an accident. Comprehensive coverage, on the other hand, deals with all damage outside of an accident.
Comprehensive insurance covers damage from storms, animals that step out onto the road, fire, theft, and vandalism. This is a critical aspect of vehicle insurance since it includes so many unforeseen incidents. While you may still have to pay a deductible, it’s far cheaper than footing the entire bill out of pocket.
Each insurance company offers a host of extra coverage options. These are often for incidents with small price tags, making them less important. You’re likely to save more money on your premium without these, even if you do need to pay for something out of pocket. Extra can include:
- Gap Insurance
- Roadside Assistance
- Rental Insurance
- Minor Violation Forgiveness
- Accident Forgiveness
- OEM Endorsement
- And Custom Equipment
You’ll have to decide if paying a slightly higher premium makes sense when selecting extra coverage. For some drivers, having accident or minor violation forgiveness can go a long way. If you frequently travel for work, rental insurance might be worth your consideration.
Selecting an insurance policy with coverage you can afford is essential. So, never be afraid to reduce your premium by reducing coverage. However, you will have to pay a higher price for expenses in the event of an accident. When in doubt, consider your driving habits and history as you create a policy that meets you needs.