“Bills travel through the mail at twice the speed of checks.” – Steven Wright
Many of us see our money go out much faster than it comes in. That’s why it can be tempting to get the bare minimum when it comes to car insurance. The strategy of purchasing cheap comprehensive insurance, or none at all, is a dangerous one. While you pay less in monthly insurance premiums, you may be putting your financial health at risk. There are many reasons not to drive without adequate comprehensive auto insurance.
What is Comprehensive Auto Insurance?
Comprehensive car insurance is often confused for collision insurance. There are some important differences between these two types of coverage. Collision insurance provides coverage when your vehicle collides with another car or object such as a fence or guardrail Collision insurance only covers the cost to repair damages to your vehicle. It does not cover the cost to another person’s vehicle or property. Comprehensive auto insurance provides coverage for your vehicle when there is damage caused by things other than a collision such as a natural disaster, theft, vandalism or falling objects. Comprehensive auto insurance is often an important and overlooked portion of coverage.
Why Purchase Comprehensive Auto Insurance?
- You should expect the unexpected. It is unfortunate but true that life throws us curve balls from time to time and sometimes those curve balls involve our cars. A flood can damage a vehicle beyond repair and a strong dust storm can damage the body of vehicle, costing thousands in repairs. Natural disasters are common in almost all areas of the country. If your vehicle suffers damages due to mother nature, comprehensive insurance can help. There is also the unexpected damage that can be done by other people. Vandals and car thieves are another strong reason to consider comprehensive coverage. If someone spray paints or steals your car, this coverage will help you repair or replace it.
- It may be required. If you don’t own your vehicle outright, your lender may require you to carry comprehensive auto insurance. Finance companies are primarily concerned with protecting their investment. To that end, many lenders will have stringent insurance requirements for borrowers, including comprehensive coverage. Make sure that you are compliant with your lenders’ requirements or they could call your loan due in full or repossess your vehicle.
- You don’t have the funds available to pay to replace or repair your vehicle. If you don’t have the cash funds available to repair or replace your vehicle on your own, you should have appropriate insurance in place. Many people cannot afford to pay for a new vehicle in the event of an unexpected loss but can afford a much smaller monthly insurance premium to protect against such an event.
- Comprehensive insurance can be affordable but don’t pick the cheapest rate for the sake of saving a few dollars. There are many things you can do to make comprehensive coverage more affordable but a word of caution—do not pick the cheapest available insurance simply because it is the least expensive. This can be a dangerous practice and do more harm than good. You need to make sure that any policy you select meets your coverage needs. If you live in an area that floods regularly, make sure flood coverage is part of your policy. Typically, the cheaper your insurance premiums, the less coverage you are receiving. Your policy should at least cover the cost to replace your vehicle in the event it is totaled. It should also meet your individual financial and situational needs.
- Making coverage more affordable. With all of that said, there are ways to make your comprehensive car insurance more affordable.
- Work with an independent insurance agent. An independent agent will be able to quote your needs through multiple companies, and offer you the most competitive rates available. Working with an experienced agent can also help ensure you get the coverage that you need.
- Bundle your policies. Most insurance companies will offer deep discounts for multiple policies. Bundling all of your insurance needs with one company is an effective strategy to bring down the cost for all your policies making everything more affordable.
- Ask for all available discounts. Each insurer will have different discounts that they offer. Some will give military discounts while others may offer student or good driver discounts. When it comes to saving money, it never hurts to ask.
- Be a safe driver. The better your driving record, the less your insurance premiums will be. If you have an accident or moving violation on your driving record, try to keep a clean record moving forward. Your insurance company will reward you with better rates over time.
Whether you are burdened by bills or getting by just fine, comprehensive auto insurance can be a worthwhile investment. Contact our office to discuss your needs and see if this insurance is already part of your policy and if it isn’t, let’s take a look and see if it should be.