Many factors need to be considered when choosing auto insurance. Deductibles, premiums and coverage are what most consumers consider when selecting a policy. Reducing coverage can save you money on premiums, but depending on the situation, may result in a financial problem. The right amount of coverage should be determined by your own situation and finances.
* DEDUCTIBLES: The amount you pay out of pocket for damages to your vehicle from an accident. If cost of repairs are $2500.00 and you have a $500.00 deductible, you owe $500.00 to the repair shop and the insurance pays $2000.00. If you are a safe driver without any accidents you may want to lower your rates with a higher deductible. Ask yourself if the money being saved on the premium justifies a higher risk and auto insurance deductible.
*PREMIUMS: The amount of money you pay for auto insurance monthly.
*COVERAGE: You will pay higher premiums for more coverage. Liability is required by law. Liability covers damage to the other party resulting in an accident you caused. Other optional coverage is available, such as collision and comprehensive. Collision covers your car when involved in an accident with another vehicle or stationary object. Comprehensive covers damage to your vehicle caused by an event other than a collision, such as fire, theft, vandalism and hail. Do not forget about adding rental coverage to your policy. Rental coverage is not very expensive. Compare the additional monthly premium cost vs. out of pocket expense of paying for the rental.
It is best to get quotes from several insurance companies to determine which deductibles, premiums and coverage is right for you. Keep in mind the more coverage you have , the higher the premiums. A low end plan will save on premiums but offers very little when making a claim.
