Insurance is your gateway to pretty much guaranteed financial security no matter who is at fault in the instance of a collision. The degree of security you have depends on which kind of coverage plan you go for, and with so much choice on the market, this can be confusing.
To aid your decision, we’ve laid out a combination of different factors to help you decide the level of coverage you require.
Factors to keep in mind
Major road accidents/collisions
We’ve started with this one because it’s always important to be prepared for the potential worst-case scenario, including the possibility of a full car replacement. If you are involved in an accident which was not your fault, the other driver’s insurance will be used to pay for the repairs or a replacement vehicle. If your claim is as a result of a natural disaster, or the accident was your fault, then you will be wholly responsible for all repairs or replacement of your vehicle, and for reasons like this it’s important to have a decent amount of cover.
Overinvesting in your insurance
Whilst you’re deciding on which coverage plan to go for, it’s pretty much guaranteed you’ll be dealing with a sales representative from your respective service provider. Make sure you don’t fall into the trap of automatically renewing your insurance. It is a good idea to get other quotations, and if you do find cheaper cover with the same benefits, you can go back to your current provider to see if they can match it or offer you further discount. Make sure the cover meets your requirements, for example, if you own an expensive or luxury vehicle, the cost of repairs or replacement will be higher so in turn you will need higher cover. If you are a high mileage driver, you will need more cover than somebody who uses their vehicle drive to the shops and back.
Underinvesting in your insurance
On the flip side, if you’re trying to stick to a tighter budget it’s important to make sure your lower rate is providing you with a sufficient amount of coverage. Many smaller companies have fewer overhead costs and thus offer more affordable prices, yet when it comes down to it do not have the capacity to address your insurance claim with sufficient support and justice. Many people express that their accidents were uncovered out of their residential state, or that even the simplest of claims are not taken care of under their policy.
New vs experienced drivers
Aside from the mileage and type of car you drive, the amount of experience you have on the road also influences the level of coverage you need. Your insurance providers will guide you through this, but if you’re a newbie or teen driver then it’s most likely a good idea to have a decent liability coverage and a lower deductible as you may be more prone to making mistakes compared to an experienced driver.
Likewise, if you’re an experienced driver with a history of accidents or general violations, you should expect to have higher premiums. Keep safe and cautious on the road to above all protect your own safety, but also avoid these higher premiums.
Towing coverage
Many people believe that towing and rental coverage isn’t included in their insurance, however these are in fact included within many packages. This can work out much more cost effective than an additional annual towing club membership on top of insurance costs.
Summary
We hope you found this brief guide helpful, remember that having sufficient coverage is crucial to any driver- new or experienced. Taking out quality auto insurance is extremely important. The trauma of an accident can be upsetting, so in the unfortunate event you need to make a claim, its one less thing for you to worry about. Make sure that you find a suitable package to fit your personal needs and budget.