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Car insurance – you can’t drive without it. Get caught doing so and you may be facing a costly traffic ticket for a first offense, while the suspension of a driver’s license or vehicle registration is the prescribed punishment for repeat offenders. That’s not a road you want to go down. So in lieu of dealing with expensive fines and court costs, make the right decision and get covered.
None of us like to pay monthly insurance premiums but the alternative can be far more expensive, plus you’ll have the peace of mind that comes with knowing you and your vehicle are protected in the event of an accident. Finances and the cost of auto insurance are the number one reason most people take the risk and drive without coverage. They find the costs are just too exorbitant for them to take on every month, and it’s true, premiums can get sky-high based on a range of factors from your driving record to the make and model of car you drive, even the neighborhood where the vehicle is parked. These all play a large role in determining the amount of money you’ll pay a month for insurance.
Keeping this in mind, most people find they need to achieve a delicate balance between the right amount of coverage and an affordable rate. The more comprehensive your policy, the more it will cost per month and if you have a poor driving record littered with speeding tickets and prior accidents, then you can expect your rates to go through that proverbial roof.
If you’ve kept a clean driving record, you will get some considerations on cost from the insurance companies because they won’t deem you to be a high risk driver. For leased or bank-financed vehicles, you might be required to carry certain minimums for protection within your policy and you’ll need to have that discussion with your financing entity before choosing the proper coverage. There are a wide range of coverage types, some more critical than others, but all of them necessary and important to maintain good standing on the road. Here are some you might want to consider when you’re getting your vehicle properly insured.
Liability Coverage
This is one of the bare minimums that companies offer and most states require you carry at all times. Liability provides coverage in the event you damage another person’s vehicle or property or cause them bodily injury as the result of your actions behind the wheel. This policy makes sure that any costs incurred from an accident in which you are at fault are paid.
Liability only covers medical or car repair expenses of the injured party; it does not cover any costs or expenses that you may be facing from an accident in which you are deemed responsible.
Property Damage Coverage
Similar to liability, it covers the cost of any damage you may cause as the result of an accident or other incident with your motor vehicle. Let’s say you mistakenly plow into the front window of a restaurant or your parked car rolls down a hill and slams into another parked vehicle. This type of policy will make sure you’re not paying for those costs out of pocket.
Collision Coverage
Carrying this type of coverage protects your vehicle from any incidents or damage that might occur as a result of driving your vehicle. If you hit another car, drive through a fence, sideswipe a guard rail, spin out and flip over on a wet road or hit a large pothole that impacts the car in some way, your repair costs are covered. This, of course, will result in your insurance premiums going up, especially if you were impaired in some way at the time of the accident.
Comprehensive Coverage
You can carry this separately, but it’s usually paired up with collision coverage as this type of insurance covers your vehicle in the event it gets damaged by fire, weather or similar so-called “acts of God”. If a tree falls on your car as the result of heavy winds, comprehensive has you covered. Hail the size of golf balls shatters your windshield? Comprehensive has you covered. It also covers your vehicle in the event someone breaks into it through your window or vandalizes it in some way. You’re also covered if you hit a deer on the highway and your front end gets smashed in.
Uninsured or Under-insured Driver Coverage
This type of policy protects you in the event you find yourself in a serious accident with one of those drivers who has decided to thumb his or her nose at the law and drive without coverage. If you get into an accident with one of these scofflaws and they’re at fault without having insurance coverage, the costs that they would normally be on the hook for are covered by your company. This prevents you from being stuck with the bill when they were the reason for the crash in the first place.
Rental Car Coverage
Some consumers take this coverage while others don’t feel the need to increase the cost of their monthly premium. In the event your car is damaged and you’re left without a vehicle, the insurance company covers the cost of a rental car for the duration of time your car is out of commission.
As per the requirements of most policies of this type, the insurance company must provide you a vehicle of equal stature to the one you are insuring. For example, if you’re driving a 2015 Ford Mustang then they must get you something comparable to drive for the time being. If you’re driving around in something much older and less flashy, then they can make the determination of what would be comparable in a rental car fleet.
There are ways to save money in choosing your coverage by deciding what’s really necessary and what might be excessive for your particular driving habits. Some consumers opt for full coverage auto insurance while others just take on state mandated minimums. Car insurance can get expensive, so find other ways to get discounts. For example, you can reduce your costs if your vehicle has a car alarm or other safety devices. Consider bundling other types of coverage from the same company, buying renters insurance or health insurance at the same time can lower your premiums as well.