Maintaining good car insurance is not just important, it is the law. State mandates often only require the bare minimum. Investing in better coverage can save you big in the event of an accident or damage to your vehicle.
How Does Car Insurance Work?
When your vehicle is insured, the insurance company looks at the quality of the vehicle and its value alongside the likelihood someone of your age, gender, etc. will get in a car accident. It offers you a policy based on this. You pay in monthly premiums for coverage, but also you may have a deductible to pay if repairs are needed – a set amount you will pay out for the repair bill before the insurance company covers the rest.
Your deductible may be high. For example, if it is $5,000 or over, you will be responsible for the first $5,000 of damage. This means any repairs that fall under $5,000 are yours to handle alone.
A way to reduce your deductible is to pay slightly higher premiums. Your monthly bill will be more, but you will be responsible for less in a lump sum if an accident occurs.
Part of finding appropriate auto insurance coverage is balancing premiums and deductibles to what you can reasonably afford with what gives you the best options in the event of accident or damage.
What Is Covered?
Another part of choosing appropriate auto insurance coverage is ensuring that you balance the value of the car. Insurance is broken down in comprehensive (non-accident damage) and collision (accident damage).
Often as cars age, it makes sense to remove the comprehensive insurance as the cost is likely more than the value of the car. However, this will mean you will be responsible for repairs to the vehicle out of pocket for damage like hail or branches falling on it.
Collision must always be maintained. It is also a good idea to add medical payment coverage to this. This is what insures you if you hit someone, or someone without insurance hits you. You can pay more for higher levels of coverage. For instance, the lowest tier of insurance may cover you for $25,000 of property damage (replacing someone’s vehicle) and $15,000 worth of medical coverage (paying someone’s hospital bills).
What if you hit someone in a Cadillac and both of their legs are broken? The cost of property damage and medical coverage are likely significantly over the coverage you carry. Now you can be sued for the remaining cost in court.
Opting for slightly higher premiums and appropriate coverage significantly reduces your out-of-pocket deductible costs and increases your coverage for property and medical costs. Investigate your options to improve your coverage with R&R Property & Casualty Insurance Agency – call 760-244-5684 or contact today!