Owning a car is an expensive business as not only you have to pay to purchase the car but you will have other costs such as maintenance, upkeep, insurance and gas. In this day and age with the rising price of goods and services, everyone is looking at ways of saving money. Car insurance is one place where you can save money if you select the right insurance policy. At the same time, you need to ensure that you have that you the right policy and sufficient protection so that you do not fall in to debt following an accident. In this post we will discuss different policies and what may be the right policy for you.
If you live in US or Canada then you are probably aware that driving without car insurance is against the law. Thus obtaining insurance is not a matter of preference but it is required by anyone planning to operate a motor vehicle. Although many people falsely think this is just another financial burden, it is really for your protection and protection of your financial assets. Accidents and personal injuries are quite expensive and if you did not have insurance, you would be forced to pay large sum of money, which many people do not have, to the other parties involved in the accident.
Since all insurance policies are not created equal, you need to find out what insurance policy is right for you. Selecting the insurance policy is crucial as you want to make certain that you are protected in case of a mishap and at the same time you do not want to over insurance.
It is recommended that you have full liability as well as medical payment coverage. The first covers the damage caused other party’s property (such as car, home, etc.) and the later t covers the cost for medical treatment. It is not wise to go light on these as if the accident result in a serious personal and bodily injury, the medical treatment cost could be hundreds of thousand dollars or even a million dollars. It is recommended that you get the maximum or sufficient coverage for both of these.
Additional coverage that is highly recommended is personal injury protection, which pays for your personal and medical injury and loss of income. Some accidents result in serious personal injuries; and thus, having this coverage can pay for your medical treatment and also your income if you are temporarily unable to go to work.
You may or may not need comprehensive insurance. For instance, if you are not driving a brand new car or if your car is not very expensive, you may want to waive the comprehensive insurance. This is one place where you can save money. However, you have to remember that you will be required to pay out of pocket for any damages to your car.
If you decide that you need full coverage, then you should increase your deductible. The deductible is the money that you pay out of pocket for damages to your car before your insurance company steps in to cover the rest. The higher is your deductible the lower your payments will be. Thus a $500 deductible has a lower payment than a $300 deductible. It is really a personal choice based on your personal finances to determine which deductible is right for you.
If you are searching for an auto insurance don’t forget to compare auto insurance quotes free on our site to see the rates and policies from all popular providers side by side sot that you can select the insurance and the policy that meets your requirements