There are so many options to choose from when it comes to purchasing car insurance. You can choose from larger, national car insurance providers or choose from a local, smaller car insurance provider. Most people buy car insurance because it’s required in the state that they live in before they can drive. They usually choose a car insurance company that they saw on television or go with their parents’ car insurance provider. Very few people take the time to research which car insurance would be the best to have given their circumstances. If they do, they base their decision on cost only. Lower insurance costs may seem like a great idea when you are paying a premium and haven’t had an accident.
However, comparing rates shouldn’t be the only thing you learn about when shopping for car insurance.
Here are five other things to consider when deciding what car insurance policy to buy.
Can you get a great deal on car insurance because of your occupation or because you attend college?
Suppose cost matters most to you. Comparing rates between various insurance companies may not be your only option for getting a discount. Did you know that your occupation or where you attend college could also help you save on car insurance? Before you log onto the internet and start comparing rates, take time to research what kind of discounts are available based on your occupation or your status as a student.
Do certain car insurance companies offer cheaper rates than others for your occupation? Is this coverage cheaper than the options that you researched online? These are some of the things to keep in mind as you shop for great deals on car insurance coverage.
How much risk can you take with your deductible?
If you are still in the market for bargains, keep in mind that sometimes car insurance costs can rise or fall based on how much risk you are willing to take on your deductible. Are you generally a safe driver and have hardly been in accidents in the past 5-10 years? Also, can you afford a higher deductible if you should have an accident in the near future?
Generally, the lower your deductible, the higher your car insurance premium. Suppose you can risk taking a chance that you won’t be in a severe accident in the next few years. In that case, accepting a higher deductible can get you more savings on your car insurance. The choice you make is all based on your aversion to risk. Do not go with a high Comprehensive deductible, there little savings. On the Collision deductible go with Regular, not Broad form there a 10% reduction. You can still go after the other at fault driver up to $3,000 for damages to your vehicle.
If you have an accident, does your car insurance cover rental vehicles while your car is repaired?
As a result of an accident, you may be without your car for days or weeks as it gets repaired. How good is your car insurance company at covering your rental car coverages as you await your car repairs? Some car insurance companies don’t provide this service at all. Those that do may have limitations on the costs and the number of days the insurance will cover the rental car. Being clear on this is critical because you may not have access to alternative transportation to get back and forth while your vehicle is repaired.
Does your insurance cover all damages associated with natural disasters?
One of the biggest mistakes people make with car insurance is assuming that all losses are covered. For instance, water damage to your car from a storm may or may not be covered. It depends on how the damage occurred and if you have the proper insurance to cover it. You may also assume that hail damage is covered in your car insurance policy, but it may not be in some cases. If it is, there may be stipulations. You may even think that your insurance covers damages associated with a storm. A tree that falls on your car may not be covered depending on the type of insurance coverage you have.
The key takeaway is that there is much more to purchasing car insurance coverage than merely deciding who has the best rates. Sometimes a fair rate upfront can lead to a massive headache when you have to use the car insurance. These are some things to consider before deciding on a policy, but your research shouldn’t stop with this list. Reviewing your car insurance coverage annually to ensure it is still adequate is more critical than all of these considerations.
More tips and considerations
Towing: Add towing and go higher than $100 per tow. During the flooded out freeways in Michigan the State Police were charging as high as $500 to get your car out. Towing is not expensive, includes any road services.
GAP Insurance: Gap cover’s the difference the insurance company pays on a total loss and the amount you owe on a loan or the value of the leased vehicle. If it is higher than what the insurance company will pay, you’re covered for the difference.
OEM Parts: Not everyone wants aftermarket parts that mainly come from China. With this option the parts are the Original Equipment Manufactured parts, not the aftermarket parts, reconditioned parts, and recycled parts for repairs from a covered loss.
Diminishing Deductibles: Starts with an automatic $100 credit towards your first At Fault Accident, and increases each year another $100 should you be accident free, up to $500 total deductible credit. Resets back to $100 credit should you use it.
Special Tort Liability: Make sure you have this coverage. In an at fault accident, you can be responsible up to $3,000 in damages to the other persons car that you hit. That is if they have a deductible or they do not carry collision coverage.
Pet Medical: Covers injury or death to your pet. Up to $750 per pet, or $1,500 for more than one pet in an auto accident.
Waiver of Deductible Glass Damage: Waives the glass deductible, for glass replacement. Not including sunroof, and mirrors.
Complete Insurance Services, Keego Harbor specializes in providing personalized insurance coverage that meets the needs of individuals, families, and businesses. You can build your own auto insurance policy and get the best combination of coverage, value and price. Do you need a basic policy or fully loaded coverage? Our local agents are here to answer questions and ready to help you determine the best coverage for your needs.
Want to find out more about auto insurance in Michigan? Call us for a Free no obligation quote and we’ll have you out on the road in no time!