Talking About Insurance Coverage

Five Factors To Help You Determine The Amount Of Auto Insurance Coverage To Buy

18 May 2016 by Jar Ross

How do you know how much auto insurance coverage you need? What do you do if you want your insurance to cover as many risks as possible? You can do all those by evaluating these five factors:

The Cost of Repairing Your Car

Collision coverage covers damage to your car after hitting something, be it a tree, another car or even a road sign. Collision coverage is optional, but it's wise to purchase it if:

• You have a new car – new cars are relatively more expensive to repair than older ones, so you need the insurance to take care of the repair costs.
• You have an expensive car – If you have an expensive model, it follows that its repair and spare parts costs will be relatively more expensive than cheaper models. In such a situation, collision coverage may be worth buying.

Your Level of Risk

Comprehensive coverage is designed to cover all other damages that aren't the result of an accident. Such damages may stem from fire, theft, and vandalism. Therefore, evaluate your level of risk of such incidents and decide whether you need the coverage. For example, you may need comprehensive coverage if you don't have a safe parking place and theft or vandalism incidences are rife in your area. The coverage will come to your rescue if your car is vandalized.

You Own a Pet 

If you own a pet, you need a type of coverage that standard comprehensive or collision coverage may not offer. If you have a pet, you should consider buying pet coverage to cover the pet's medical bills in case they are injured in an accident. Note that most forms of pet coverage are designed for specific animals, mostly cats and dogs, so you need to have that in mind while buying coverage.

You Have Customized Your Car

If you have customized your car, then your standard coverage may not pay for repairs if the modified parts get damaged or the car is stolen. This is because car modification raises the value of a car, making it more attractive to thieves. The parts used in the modification are also relatively expensive, which presents an increased risk your regular car insurer may not cover with your standard premiums. In such a case, consider buying customized car insurance.

You Drive a Lot to Rural Locations

If you frequently drive to rural locations, think about the risk of being stranded and having no one to help you. Consider buying coverage for rental car reimbursement and emergency road service. Rental car reimbursement covers the cost of renting a car while yours is being fixed, while emergency road service will pay for towing, which can be pretty expensive if you are stranded in the middle of nowhere.

Contact a company like Oliveira Gilbert C Insurance Agency Inc to learn more.

Share