What to Look For in Auto Insurance Coverage

Price is important when buying auto insurance, but there are other factors to consider, as well.

Whether you’re buying your first policy or you’ve been buying auto insurance for many years, if you’re only looking at the bottom line (cost of your monthly premium) and not reviewing your whole policy, you may be missing out on some important cost savings or benefits offered by some carriers, such as those mentioned below:

Discounts.  Believe it or not, some carriers like rewarding good driving habits and saving their customers money.  There are a wide range of discounts available from different carriers—everything from Good Grade Discounts for student drivers to discounts for mature drivers who take an improved driving course.  You can even save some money if your car has certain safety features. One of the most common (and popular) is the bundled policy savings you can receive if you purchase your home and auto insurance from the same carrier.  

Rental expense.  Auto insurance is meant to protect you financially from the unexpected.  If you have an accident and need to use a rental car, some policies will cover some or all of the costs for the loaner while your vehicle is being repaired.

Ability to drop comp and collision. Your car loses value as it ages, so there may come a point where you decide to drop certain coverage.  For example, if your car is 10 years old and it has a few dents or dings, or it’s worth only a few thousand dollars, you might want to drop the comp and collision coverage.  The repairs from any future scrapes may cost more than the car is worth.

Coverage for work use.  If you work in sales or are a delivery driver, you may be using your own vehicle. Make sure your personal policy includes this coverage—otherwise you might need a separate business car insurance policy.

As always, not all carriers offer the above discounts or benefits. It’s important that you review your policy with your agent so you know what you may be entitled to. You can always contact us if you have questions about your coverage.

How do you choose your auto insurance? We’d love to hear from you in the comments below!