Choosing the Right Auto Policy
No one wants to foot the bill when it comes to a traffic collision. That
is why it is important to get insurance with the right coverage to
handle your individual needs. You want something with enough coverage to
protect you without breaking the bank to get it. The following should
help you get what you want affordably.
In most states, the basic coverage is bodily injury and property damage. In some places, if you own a home or business and your auto insurance is not enough to cover someone’s damages, your property may be put in jeopardy. The injured party can place a lien against your home or business. This means that if you were to sell your property, their damages from the accident can be taken from any profits you make in the sale. To protect yourself and your assets, your bodily injury coverage limit should be at least the market value those properties.
Most people want to be sure that they will be covered if someone hits them, which is where uninsured/under insured motorist coverage comes in. Since this benefit will potentially be compensating you for your losses, choose the coverage amount that you are most comfortable with. Understand that whatever amount you choose has to be less than or equal to the bodily injury policy limits because most insurance companies will not allow this limit to be more than the bodily injury limits. So if you want more uninsured motorist coverage, you may have to raise your bodily injury policy limits, which will also raise your premiums.
The next thing to consider is medical payments coverage. Some states require some form of medical payments coverage in the state mandated minimum policy, so you may be stuck with this whether you need it or not. Brokers particularly love to push this coverage also because it is easy to scare someone into buying a lot of it. Either way, this is a part of your policy that you should really think about before purchasing. If you have complete health coverage that will pay for any medical care you and your family needs, then this coverage might not be worth it. On the other hand, if your insurance is non-existent or limited in its coverage, you may want to get a bit of medical payments insurance to help you since it will pay your bills regardless of who caused the accident.
Now let us discuss your car. Consider for a moment how much your car is worth. If it is worth more than your deductible would be, then you may want comprehensive and collision on your policy. Be careful when purchasing this coverage that your limit is not excessively higher than the value of your vehicle because the most you will get from your policy is what your car is worth. Both comprehensive and collision will pay out regardless of who is to blame for the damages to your vehicle.
Finally we come to the incidentals that are often tacked onto a policy without you even being aware of them. The first is rental coverage, which will get you a rental car while your vehicle is being repaired. If you have more than one vehicle or you do not need your vehicle all the time, this may be a part of your policy you wish to opt out of. If you do go for this coverage, go for a policy that will allow you about $20 a day. You do not need the best car on the lot, just one that will get you from point A to point B while your vehicle is in the shop. If by chance you do need something bigger than a compact, check with rental agencies and find the going rate for what you need and get a policy that covers it.
The other incidental that may be hidden on your policy is roadside assistance. Whether or not you need this is entirely up to you. Take into consideration that there are companies that offer this service outside of an insurance company, so you can shop around for this coverage. If you want roadside assistance, choose a company that has the lowest premium not just the one that your auto policy is through.
Do not let a broker take more money from you than is necessary. With these tips in mind, you should have no problem establishing a policy that is right for you. Put together a list of what you want and the limits you need and stick to your guns when talking to your insurance company. And most of all, do not be afraid to shop around for the best prices for your coverage. Big-name company does not necessarily mean a better company.