Choosing the Right Car Insurance Coverage for Your Vehicle
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In most places, the authorities will not grant you a drivers license if you have not purchased car insurance. Having insurance saves the state money because the insurer will pay damages and medical costs in the event of an accident, meaning that the injured will not have to depend on government money to rectify the situation. Furthermore, having the proper amount of car insurance is exceedingly wise, both to protect the investment you have made in your vehicle and to help keep the other parties in an accident from suing you and taking all that you have.
The need for car insurance is clearly established, but this need immediately raises a question: How much car insurance coverage do I really need? Most places will require a certain minimum amount of insurance but is this enough or do you need higher coverage limits on a car insurance policy? And if you need a larger amount of coverage, how much is truly enough?
These questions are not always easy to answer, but there are steps to follow to determine the amount of coverage that you really require. In the first place, you must meet the minimum coverage amounts that have been established in the place where you live. Citizens of Florida in the United States, for example, must have a minimum amount of personal injury protection in their plan in order to get a drivers license. The minimum amount of coverage is usually enough to cover drivers whose cars are older and have been paid off, so most people with old vehicles elect only to buy the minimum coverage and save money.
In the event that you are driving a newer car, however, most insurance companies and/or legal authorities will require additional coverage and comprehensive collision protection. This is especially true if you still have a lien on your vehicle. Loan companies want to make sure that they get paid in full, and they realize that a person who totals a car, may not be willing to make the rest of payments owed on the vehicle. Having enough insurance coverage to fulfill the terms of the bank note in the event of a loss is therefore usually required of those who are still making car payments.
Those who have paid off their cars may still want to have more than the minimum amount of coverage in the event their car is totaled and needs to be replaced. In these cases, you should make sure that your premium totals for a year are not more than the claim the insurance company would actually pay to replace your vehicle. Otherwise, you are simply giving away the difference between the payout and the insurance premium.
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Want Lower Insurance Rates? Do Your Part To Prevent Auto Theft!
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It’s one of the most often heard pieces of car advice: don’t leave your keys in the ignition and the doors unlocked because the insurance company will not cover it if the car is stolen. Fortunately, for the vast majority of insurance policies, this is nothing but urban legend. No matter how easy you make it for the thief, the car is still covered by any major insurance provider. That being said, it is feasible that an insurance company may add something to this effect but, if so, you probably want to drop them and find another provider.
Now this is not to say that, should your car get stolen with no sign whatsoever of forced entry, damage to the steering column, or anything at all pointing to a car thief having stolen it, the claim will not be heavily scrutinized and delayed. Insurance fraud is one of the costliest things to car insurance providers, so they spend a lot of time, money, and resources trying to prevent it. With some smaller or less scrupulous insurance companies, you may find yourself with a denied claim that you have to fight to get paid. Although most insurance companies will shy away from the courtroom if it comes down to it, the process would still be lengthy and irritating, and possibly expensive for you if you are paying for a rental car out of pocket in the meantime.
Everyone should be doing their part to prevent cars from being stolen, even if it’s just recovering your keys and locking your doors. The easier it is for thieves to steal cars, the more they will do it, the more the insurance companies have to pay out, and the more everyone’s policies cost.
Don’t assume that your car is immune because it’s old or unattractive. Cars are generally stolen for one of two reasons: to be resold overseas, or disassembled into their component parts, which are then sold. In as few as ten years, some car manufacturers stop producing parts for some cars, driving the value of used parts sky high, so your old clunker just might be quite valuable simple because it’s an old clunker. The top five models stolen in 2008 ranged from years 1989 through 1997. That’s right, within the top five models stolen, none of them were younger than twelve years old. Considering that there are far fewer cars of that age on the road than cars five to ten years old, it becomes obvious that older cars are very heavily targeted.
Of course, it may not be because they are more valuable after everything is said and done. It may be because thieves know that people think their older cars are immune.
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