Car insurance contains numerous types of benefits, and each provides a separate type of a protection for different vehicle liabilities. Every driver should be able to customize their plan to their advantage. However, they shouldn’t necessarily buy every type of coverage at its highest levels. That could cause you to pay more for coverage that you don’t necessarily need.
How can you customize your auto policy so that you have full coverage without necessarily maxing-out your policy? You might not need all types of available coverage, but those that you do have will be tailored to provide you optimized assistance.
What Coverage is Required of Me?
Forty-nine states require drivers to carry minimum levels of auto insurance—namely liability coverage. This coverage applies when you are at-fault for an accident and must compensate someone else (another driver, pedestrian or property owner) for the injuries or damage your caused them.
If your state requires this coverage, then you must buy it and maintain it in order to keep your driving privileges. While you will have to carry minimum amounts of liability coverage, increasing your coverage limits to higher levels will provide you with more protection in case of an at-fault accident. This is one portion of coverage where it is a good idea to carry high limits.
Should I Buy Coverage for Physical Damage?
Your auto insurer will usually offer you physical damage insurance for your vehicle, including:
- Collision insurance, which will pay for damage to the vehicle following a wreck.
- Comprehensive insurance that pays for damage from hazards other than collisions, such as fires, hail, falling trees, or animal strikes.
If you finance your car when you buy it, then your lender might require you to buy both collision & comprehensive insurance. Gap insurance, which helps you pay off the difference between your vehicle loan and the value of the car following a total loss, might also be required.
However, your physical damage coverage will include deductibles, and will often only pay you for damage based on the vehicle’s actual cash value at the time of the loss. Therefore, as your vehicle depreciates, you might eventually find that the premium you pay for this coverage might outweigh any settlement you might receive following an accident. You might decide that you no longer need it.
What Other Benefits do I Need?
Other auto insurance benefit might not be mandatory but can still be very helpful to you if you ever need it. For example, uninsured/underinsured motorist coverage can help you pay for your own vehicle damage when someone else is at-fault for the wreck but doesn’t have the liability insurance to compensate you. Further benefits might also offer roadside assistance coverage, rental car reimbursement and other perks.
You should always carry optimized auto insurance, but never benefits that won’t provide a return on investment. Our agents are happy to work with your agent to find the perfect balance of coverage.
Also Read: 6 Tips To Avoid An Accident In Bad Weather
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