A car insurance coverage is an undertaking that has to match one's circumstances and needs. The insured is advised to periodically adjust the insurance coverage to match his needs.
There are four ways that can be used to assess which Insurance coverage to select for one's car.
1) RATES
Rate is the amount the insured pays as premium to the insurer for risk covered. Rates have to determine the type of coverage an insurer goes for. The driver's age, the state in which he lives, his gender and his car type determine the rate of deductibles, type of Coverage, and liability limits. These rates help the driver on which Insurance Coverage to choose. The higher the premium, the lower the deductibles and vise versa. So good assessment of rates helps the insured to choose the coverage for his car.
2) CAR TYPE
The type of car one drives is a factor to be considered in assessing Insurance Coverage. Infact, it determines the type of coverage one can go for. The driver has to know whether his car is old or new. If the car is old and worth less than 10 times the annual premium, the Insurance Information Institute advises that the driver can choose only the comprehensive and collision coverages and also go for lower rate limits.
But if the car is brand-new, the driver has to go for more Coverage to protect his investment. Apart from liability, comprehensive and collision coverages, that the leaser and lender may demand, the driver has to add Gap Coverage to protect his underwater loans. He has to add new car replacement Coverage and even repairs provision Coverage. So the type of car determines the type of Coverage.
3) FAMILY SITUATION
This aspect can also determine Insurance Coverage. If as a parent, there are teenagers in the family just starting to drive, such needs to be covered too. Sending children off to college with cars, getting married, getting divorced etc has an impact on the Insurance Coverage. How many people drive the car presently, where will the car be packed in college. All these can determine the rates and the coverage types to be undertaken.
4) DISCOUNT
A discount is a reduction in the amount to be paid, so that the insured pays a lesser sum. Like the car type, the rates and the family situation, discount in car insurance can determine the type of coverage the insured goes for. The insured who recently bought a home and a car can benefit from a discount. This can be done if he jointly insures the home and the car in a Coverage. Also if the car has security preconditions like airbags to quench fire and anti lock brakes to protect theft, these might attract a discount and help the insured save money. Even safe driving ratings, frequent early Insurance Coverage renewals etc can attract a discount.
Dear reader, to better protect yourself, your family members, your passengers and your car, go for periodic insurance assessment and adjust following your present needs and situation. Think of the rates, think of your type of car, think of your family situation, think of the discount and choose the right Insurance Coverage. Your local agent is wiling to help you.
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INSURANCE