3 Things to Remember When Buying Car Insurance

You know you’re a safe driver; you obey the speed limit, traffic signals, and are vigilant about road conditions. In an ideal world, you’d need very little more to get away without paying any car insurance at all, because you wouldn’t have to worry about accidents. That’s why they’re called ‘accidents’, however — because you can’t always avoid them. So make sure when you are getting cover for your vehicle, you remember to give yourself every advantage.

There Are Accidents…and Then, There Are Accidents

Some policies insure your car against all kinds of mishaps: everything from lightning striking a tree, which then falls on your car, to severe weather damage or vandalism. Some policies, on the other hand, cover your vehicle only in the event of an actual road mishap. Depending on the age of your car, its condition, how long you think you’ll be keeping the vehicle before trading it in or selling it, you may want a greater or lesser amount of cover on the car under different circumstances. Be sure to ask your broker about the differences in price and what you’ll get for your premium; if you can’t absorb a big repair bill because of an act of Nature, a slightly higher premium will be a small trade-off for peace of mind.

Expensive Toys on Board

You may love your GPS system, or your MP3 player, or your tablet…but so might a thief. Keep in mind that only certain parts and equipment actually on or in a car are insured under the car’s cover — anything else that’s not part of the auto itself needs to be protected under separate personal-belongings policies. Sometimes it’s more devastating to have your car damaged by burglars taking what’s IN it than it is to have the car itself stolen. Don’t risk that kind of damage to your car or lose your toys; lock them up securely where they can’t be seen in the car, or take them out of the car whenever you leave it.

Are You a Gambler?

No, your insurance rates aren’t affected by whether you love the casino or not — but in a very real way, insurance can be a gamble. Sometimes, we foolishly think that we either don’t need insurance at all (“that always happens to someone else”) or we’re genuinely on a tight budget and can’t afford anything more than minimal cover. In the first case, you could be playing with fire. In the second instance, you’re at least making the effort to get good cover against the unexpected — but your budget could still take a hit if your cover is such that it runs out before paying all the expenses you incur.

Overall, it’s best to get the most cover you can with your budget; certainly, you might never need it — in fact, insurance is one of the few things you’ll buy and hope you never need. If and when you do, of course, it’s priceless beyond the worth of the premiums you pay. Shop carefully; get car insurance quotes from many companies and brokers so that you can compare what you’re offered for the outlay.

Whatever It Takes…

In the truly rare event that your budget won’t stretch far enough for decent cover, consider asking friends or relatives for temporary help until you can swing the full payments yourself. This might sound extreme, but the consequences of not having adequate insurance (or any at all) are far worse: you could not only end up bankrupt but in trouble with the law. Inadequate insurance can have repercussions that linger for years, affecting your employment, your financial stability, and even your reputation. In short — it’s a gamble not worth taking. Do what it takes to avoid such hazards…with good insurance.

 

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Attribution: Pava

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