Making the Most of Car Insurance

Make your auto insurance really work for you

You must have car insurance to drive legally in most states, but insurance is more than just the law. It's a smart way to protect yourself from expense of an accident you can't pay for. Make sure you have the right combination of coverages to meet your needs.

Liability and property damage takes care of the other driver's medical costs (and court costs and awards if you're sued) and fixes their vehicle if you're found to be at fault. Medical payments coverage pays the expenses of people in your vehicle, regardless of fault. Uninsured motorist insurance pays medical bills for the people in your vehicle if the other party found liable is uninsured or underinsured. Comprehensive (or other than collision) and collision coverage pay to repair or replace your vehicle.

You can make your vehicle insurance work to protect you and assets you've worked so hard to build. Take the following steps and soon you'll be making the most of your car insurance.

1. See state requirements and recommended coverages from auto insurance providers.

2. Find out if it's worthwhile to keep your full coverage through car insurance companies.

3. Consider an umbrella policy from a car insurance company.

 

Figure out whether the state minimum coverage is enough vehicle insurance

With the costs of autos skyrocketing, when you're responsible for totaling a vehicle, you'll have to pay if your insurance is insufficient. Some states have a minimum property damage coverage of $10,000, which won't cover most of the cars on the road. Liability coverage for some states begin as low as $10,000 per person and $20,000 per accident; with medical costs climbing, you could be liable for someone else's medical bills for life.
Try: Find out the insurance requirements in your state at Hometown Quotes. Then compare that figure to the information on Allstate's Bumper to Bumper Basics. This website walks you through a step by step process to determine the coverage that's right for you based on your unique needs.

Weigh the benefits of keeping "full coverage" automobile insurance on your older vehicle

Depending on the age and value of your vehicles, you may consider dropping your comprehensive and collision coverage. Insurance companies advise customers to consider whether this "full coverage" insurance is really worth paying for. To find out if it's worthwhile, consider the worth of your vehicle based on an "actual cash value," the premium and how much you'd receive for a loss after reduction of the deductible.
Try: Find out approximately what your vehicle is worth at Kelley Blue Book's website. Another option for determining vehicle values is the NADA Guide, which is also available online.

Compare car insurance quotes including an umbrella policy

Depending on the insurance company, some companies include home or boat insurance along with the car insurance policy, which can lower your costs. Check with car insurance providers to see how these umbrella policies can work for you. Umbrellas aren't just for the rich any more; protect yourself and your assets with affordable additional liability coverage of an umbrella.
Try: Take the mini quiz online from GEICO to determine whether you should consider a umbrella policy. Then, look at insurance rates in your area for umbrella policies from RLI.

 

• When comparing car insurance rates, make sure that the car insurance companies haven't compromised coverage to give you a better rate.

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