Car insurance and cars go together.
If you drive a car you are going to need automobile insurance.
Although you need not me an expert in the field of car insurance
there are some things you should know, and preferable not learn them
as a result of having an accident and/or having to file an insurance
claim.
When it comes to your budget, car insurance isn’t the most
exciting thing to try to figure out, but you do want to spend your
money wisely.
First of all, a great many people probably don’t carry enough
liability insurance; especially today with the costs of litigation
as high as it is. Be careful about squeezing your auto insurance
budget so tight that you carry a minimum deductible and too little
liability.
If you’re worried about coughing up the $500.00 deductible, what
will it be like if you have to cough up $500,000 because of a
liability suit against you?
Consider carrying a higher deductible. Put your deductible amount
into a basic savings account then leave it alone. Then use the
savings you gain from carrying a higher deductible to raise your
liability coverage.
Determining these numbers is best done by you and your insurance
agent since everyone’s ability to assume risk and net worth are
different.
When it comes to your liability, don’t just evaluate your total
liability per accident.
You need to take a look at this as it pertains to your per person
amounts as well. This can be a bit confusing, but for example, if
you had a basic policy that pays up to $300,000 in total liability,
but $100,000 per person; and you are at fault with one of the
individuals for $200,000, then you would be on the hook for half of
the $100,000.
You may want to make sure your agent writes the policy so that
the per accident and per person are the same. In other words, you’ll
have $300,000 in coverage not matter how it is divided up.
Another area to take a look at in order to get the most and best
from your car insurance dollar is your personal injury protection.
If you already have health insurance that you carry, check to see
what or if the coverage would be for you and your family in the case
of an accident. There’s no need to pay twice for the same coverage
if there is overlap.
Next: Get The Most From
Your Auto Insurance - part 2
