AUTO INSURANCE ARTICLE
Identify Auto Insurance Coverage That You Don’t Really Need and Get Huge Savings
By: letter_womanIt is illegal in most states in America if you drive without auto insurance. Therefore it is our utmost concern to get a reliable auto insurance coverage not only for our own safety and peace of mind, but also to avoid facing lawsuits and repair bills. Since purchasing car insurance is almost inevitable, how do we reduce the cost? One good way to do so is to review your current coverage or policy and see if there are some items you can do without. By lowering the level of certain types of your coverage, you will significantly reduce your car insurance cost. Let’s take a closer look into these items and learn which ones we can drop or keep.
A basic car insurance policy is comprised of six basic types of coverage, some of which are mandated by law and some optional.
Liability insurance is the minimum required coverage in most states because this will pay for the other party’s property damages, bodily injury and even legal expenses when you are at fault in an accident. This will also cover medical bills and lost wages. This type of coverage is quite ideal especially if you are really trying to cut down your auto insurance costs. However, in the unlikely event that you encounter a horrible and serious accident, this type of car insurance coverage might not provide you adequate cover.
Then there is also collision insurance, which will pay for damages to your own car in case of an accident. This is normally the most expensive item in your auto insurance quote but also equally one of the most important, so think about this carefully before you drop this coverage.
Comprehensive insurance, on the other hand, will pay for damages to your car that was not caused by an accident. These situations includes damages caused by theft, if your car catches fire, if it has been vandalized, or damaged by flood, or by a passing deer. The law does not require comprehensive insurance and collision coverage, but it is highly recommended to purchase both to avoid large bills in times of an accident.
The coverage you don’t really need include rental reimbursement, which will cover car rentals when your personal private car is being repaired or stolen. It may also be worth dropping your roadside assistance cover. If you get this for free from your car dealer then why pay for this extra amount in your car insurance policy? Also think about it thoroughly if you still need to pay that extra cash for gap coverage. In case your car is totaled in an accident, gap coverage will pay the difference between the actual value you receive for the car and your unpaid balance left on your car loan in the worst case that your car is totaled in an accident. This may not be a huge necessity especially if you can pay for your loan no matter what. If you drop this type of coverage, it will greatly reduce the cost of your car insurance rates.