Premium estimates in auto insurance, a good idea.
Too often we contract auto insurance like we are buying cereal at our local corner stone. “Yes, that one looks good, it says it is healthy, help you lose weight and is full of chocolate”. Just like it is a good idea to compare prices when you are shopping for a house, a car or an engagement ring, car insurance is an expensive and vital part of the life of any driver. Car insurance is not a tangible asset but can save all your other assets. Without good insurance you could lose everything you have if you are liable for an accident and you don’t have suitable protection. On the other hand, if your protection is great but you are paying a high premium, you might be spending more on insurance than your car is worth. As the Spanish proverb goes: “You don’t kill flies with cannon balls” you want to get the right tool for the right job. This article is all about how you can do that without losing too much money and time in the process.
As with any worthwhile endeavor, one must plan ahead for it to be successful. In the case of auto insurance this will mean deciding what your priorities and auto insurance needs are. If you are not sure what we mean by this I recommend you read our other articles on this blog that give more information on specific types of coverage. Here is a brief summary. There are three main kinds of auto insurance coverage.
1) The coverage you receive for damages to your car when it is your fault, what is called Collision Damages coverage. This coverage is rather expensive because it binds the auto insurance company to cover your damages even though it might be your own fault for bad driving and insurance companies always like to involve the policy holder in sharing the risk and making them responsible for their own actions as much as possible. It is a good idea to think how much your car is actually worth. If it is a new car it might be a good idea to place some importance on this coverage. If it is a second hand car that is not worth much more than 2000$ it might be cheaper to save money on this type of coverage.
2) The coverage of any liability for damages caused to others. This is the most important type of insurance as it can save you from bankruptcy. Any personal and material damages you cause with your vehicle are your responsibility and without this coverage you are in serious trouble. Make sure this insurance coverage is at least over the minimum set by the state or country you live in, and as high as you can reasonably afford.
3) Medical coverage will pay for any medical expenses that you incur in an accident even if you are at fault. This type of coverage is important as you or your passengers might not be able to afford treatment without it.
Plan ahead, ask for premium estimates with the options you decide you need and enjoy your ride with the peace of mind that good insurance brings.