How to Choose the Perfect Auto Insurance Plan
Auto insurance is something that you need as soon as you get your first car. Without it, you can’t drive legally or even register your vehicle. With that in mind, what should you consider when choosing the best insurance plan to fit your needs and budget?
How Old Is Your Car?
If you have an older plan, a basic policy that has liability and bodily injury coverage should be sufficient. You don’t want collision or comprehensive insurance because replacing the car will cost more than it is worth, and the insurance company won’t cover your claim. However, if you have a newer car or have a loan, you will want as much coverage as you can get.
What’s Your Driving Record Like?
If you have a perfect driving record, you should look for a policy that gives you a no-claims discount. You should also be able to get a cheap policy from a nationally known company such as Allstate or State Farm. However, if you have a checkered driving record or have gotten a DUI in the past, you should look toward discount or niche companies to get the coverage your need at a price you can afford.
Can You Afford a Large Deductible?
The higher your deductible, the less you will pay each month in premium. The deductible is the amount that you pay before your policy kicks in. If you have a deductible of $2,000, you will pay $2,000 before your insurance company pays for anything. While a low monthly premium may seem nice, you have to consider whether you could afford to foot most of the bill if you got into an accident or otherwise needed to file a claim.
Is Your Car a Classic or Part of a Collection?
Those who own a classic car may need a specialized policy to cover anything that could impact its value. With collectible cars, their value depends on them being in pristine and as close to original condition as possible. A single scratch could drop its value significantly as well as lead to costly repairs assuming that they can be made. Therefore, you want to make sure that you are insured mostly against depreciation should anything happen as you probably don’t actually drive the car.
As there are a large variety of auto plans available, there should be no problem finding one that fits your needs and budget. You can go online to create a policy you like or talk to a local agent today to craft a policy that will cover you no matter what happens to your vehicle.
