Auto insurance is required by law in all 50 states, and you must use insurance to protect your car, yourself and your passengers. This article explores how an auto insurance policy can be put together for you, and you should ask your agent about each suggestion listed here. Auto insurance policies can serve you extremely well, but you must purchase something that is affordable and effective.
#1: What Policy Should You Buy?
Auto insurance policies are either collision or comprehensive. A collision policy pays for repairs to your car, but there are not other provisions listed in the policy. Comprehensive policies include several other options that help you recover in the aftermath of a crash or damage.
Collision policies are much cheaper than comprehensive policies, and you may use a collision policy to save money. Your policy will cover repairs, but you will not receive any other assistance from the insurance company. Auto insurance of this type makes filing claims simple, but you may not have the resources you need to recover from an accident or major damage to your vehicle. Use collision policies to help save money on your insurance.
#2: Why Are Comprehensive Policies So Expensive?
Comprehensive auto insurance is much more expensive than collision insurance due to the services you receive. A comprehensive policy pays for damage to your car, replaces your car, pays for a rental car, offers roadside assistance and pays for the loss of personal belongings.
Roadside assistance is a helpful tool for anyone who drives often. You can call your insurance company for help, and someone will be dispatched to your location immediately. Your policy will pay for services at a customer service location, and the roadside assistance line will send a tow truck if you need on.
You may lose personal belongings in a crash or theft, and your auto insurance will pay to replace anything that was lost or damaged. You must show you had possession of these items, and the auto insurance company will value each item for replacement. The policy helps pay for a rental car while yours is being repaired, and your car could be replaced in the event of a total loss.
#3: Medical Coverage
Comprehensive auto insurance includes medical coverage for you and your passengers in an accident. You may be sent to the hospital with injuries sustained in a crash, and your comprehensive auto insurance policy will help supplement your health insurance.
Medical coverage is a unique service offered on the most expensive policies, but you may need the medical coverage if you drive often. Anyone who is on the road for long periods of time should carry insurance that offers all the amenities listed above. Your safety is at stake when you are behind the wheel all the time, and a comprehensive policy offers more assistance overall.
#4: Controlling Costs
The cost of your insurance policy is easy to control using deductibles and services. A collision policy is cheaper than a comprehensive policy, and a policy with a high deductible is cheaper than a policy with no deductible. Ask your insurance agent for a price quote on all available deductibles, and choose the policy you think best fits your needs. Someone who files claims often may want to avoid a deductible, but someone with a clean record can save money by using a high deductible.
Everyone on the road is required to have auto insurance by law, and you must purchase a policy that serves you well. The policy options and services listed here will help create a useful policy for you, and you can drive knowing you are protected.