The abundance of auto insurance companies today make it difficult to decipher which one will provide the best value for your money. Beyond your basic items, like liability insurance, collision, medical, and comprehensive, what should you include in your policy? Below are things to consider when choosing your car insurance that can help make your decision less overwhelming and will ultimately help you get the best insurance package for the cost.
It seems strange to get this because everyone should have auto insurance, but the truth is they don’t. In fact, nearly 10% of Americans have admittedly driven without car insurance at some point in their lives. If you’re in an accident where the other person is at fault and doesn’t have enough coverage (or any coverage) at all, you may get stuck with the bills. Many states attempt to cut down on this problem by requiring anyone attempting to register a car to provide proof of insurance, but of course there are always those who find a way around the rules. Typically, adding this type of coverage is standard in many packages and well worth it. If you do get in this type of unfortunate accident, your costs will normally be covered when you fill a claim with your insurance company.
It is very helpful to have all of your policies with one company, especially if you get a discount for it. The savings are generally anywhere from 5 to 10 percent and you are generally eligible if you have a home or other assets that you need insurance for. When all these policies are bundled and insured under one company, you save. Nearly all companies offer this as a “thank you” to you as the customer, but it’s important to shop around and see who offers the biggest reward. This being said, a good place to start your research is by looking for a company that offers home owners, renters, life, disability, flood, RV, and motorcycle insurance and then compare the costs.
Why should you have to join an auto club when you can get help through your own car insurance? Many companies offer this coverage and it’s a great idea to take advantage of it, especially if you are a commuter or tend to travel frequently. Unexpected things happen all the time. Most policies cover accidents like running out of gas, locking your keys in the car or having your vehicle towed to your mechanic. This is another feature that can be very inexpensive to add to your policy and can be well worth the few extra bucks if you ever find yourself stranded with a flat tire or an empty gas tank.
This is now sometimes included on your automobile loan itself, but it’s very useful to have as part of your insurance package if it’s not. When you have an accident and total your car there is always the chance that the value of your car is not as much as your loan. Gap insurance makes sure that your car loan will be paid off no matter what. When you consider the fact that your car immediately loses value the second you drive off the lot, gap insurance can be very helpful in your first few years of car ownership. If your car is damaged in an accident, from a storm or vandalism, gap insurance will help ease the financial burden. As somebody that has totaled their car, I can say first-hand the important of gap coverage. It literally saved me thousands of dollars and was only a few extra bucks per month to add to my policy.
If you get into an accident the last thing you want to think about is what you’re going to drive while your car is in the shop. Typically, as long as you are able to drive your car to the shop, the rental car will become available as soon as the repairs begin, but not before that, Rental reimbursement makes sure that you will have a rental car to get you by until your vehicle is up and running again. Most insurance companies have specific rental car outlets that can bill them later so that you are not required to make any payment on the spot. Some companies will even bring the car to you.
This is a new option that a lot of auto insurance companies are now offering. Having an accident is a horrible thing, but it becomes even worse when your perfect driving record is gone and your auto insurance rates increase. With accident forgiveness your company will forgive one accident and act as if it didn’t happen. This can save you big bucks on your insurance payments.
Choosing your auto insurance company can certainly be a headache, but if you know what you’re looking for it will make your job much easier.
Nicole Evans is a contributing writer for CheapestCarInsurance.org, a site that offers drivers no deposit car insurance so that payments can be made at monthly intervals with no cumbersome upfront deposits.