It can often be extremely challenging to navigate the diverse world of auto insurance policies. Many parties argue that full coverage is preferable no matter the scenario while others argue for the opposite spectrum of paying as little as necessary.
According to Edmunds, “When it comes to auto insurance, you want to be adequately covered if you get in an accident, but you don’t want to pay more than you have to. Unfortunately many people are doing just that, simply because they don’t want to spend time shopping for car insurance. It’s not inherently enjoyable, after all, despite how it looks in commercials featuring disgruntled cavemen and joke-cracking spokespeople.” By learning how to differentiate adequate coverage from overkill, saving money while retaining peace of mind can be accomplished.
Assess the current value of your car. A great way to accomplish this is by looking at used car ads for vehicles that have a similar mileage and age. Now compare the value of the car to the compensation you would receive from the insurance policy in the case of an accident. Many people, especially those who have collision insurance as part of their policy, would be surprised to find that they are making a foolhardy investment.
Although such insurance is arguable in the case of a new $40,000 vehicle, the new car argument can also typically be disproved in the case of cheaper new cars which typically sell at around $10,000. Collision insurance can often cost $1,000 a year, a price which can be unreasonable to pay under certain circumstances.
The amount that you drive is also important to evaluate when choosing an insurance policy. Many insurers will agree to reduce the cost of your insurance if you can show that you drive below a certain number of miles per year. The risk of getting into an accident is dependent on how much you drive, which is a variable that many insurance companies are willing to cater to.
Take the time to contact us at Strategic Insurance Agency if you have any questions about picking an auto insurance policy that fits your driving needs.