If you own a car or if you are planning on buying one than you need to look at the different kinds of car insurance that are out there. Don’t just go for the cheapest because you think you are going to save money. In the long run it just might turn out to be the opposite. An excellent tool for checking out car insurance is the Internet. Do your research because you just might find insurance that fits your needs without burning a hole in your wallet.
Maybe the first thing to look at is the auto liability insurance that is practically mandatory in most places. This can vary depending upon how much you are willing to pay. Unfortunately many look at how much deductible they have to pay themselves. While it is human nature to want to pay as little as possible having a $500 or $600 deductible and a minimum on the coverage suddenly seems to be utterly useless when faced with a lawsuit which is about a half a million dollars. Try to carry as much of the deductible as you can so that you can afford a higher liability coverage. Shop around since different insurance companies have different packages. Don’t forget that every company wants you as a customer and you can talk to them and put together a deal which suits you. It is unrealistic to think that an eventual accident is going to be limited in cost to something which you can afford. If you factor in medical bills and a possible lawsuit than you more likely to be looking at a $500,000 bill instead of $300,000.
Something else to look at is what exactly does the liability coverage pay out for each person injured in an accident if it comes down to it being your fault. Suppose you have a coverage that totals $300,000 and then get hit with a $200,000 lawsuit you may suddenly find that your coverage does not cover it all. What you need is an insurance that will cover an accident and bodily injury with the same amount.
Check out if your insurance company handles different types of insurance. You can always lower your premium if you have your house and car insured at the same company. Likewise if you have a second car insured by the same company. The technical term is Umbrella policy.
Something that would be good to have in your insurance is the cost of a rental car while your claim is being handled. If your car has to be towed and can be repaired than you are looking at least a week of being without transportation. So many people are used to having a car that being without is incredibly stressful. Another thing to look into is how the insurance company regards having the car fixed and you pay the difference?
Don’t forget the fine print when checking out a policy. Do this before you sign any papers and ask the insurance agent to go through the different steps involved in a claims process. This way you do not get ambushed with bad news in the middle of a lawsuit.