subject: Car insurance policy: Tailor it well [print this page] Car insurance policy: Tailor it well
With your hands on the steering wheel of your favorite car as you drive on smooth roads, the feeling you get is wonderful. However, before you start daydreaming, look at all the practical aspects that go into your fantasy drive. Among the most important is your car insurance policy. Having your car insured does not just make you better secured but also covers your car against damages of various kinds.
There are several car insurance coverages to choose from. How you assess them is what is more crucial. Car insurance policy coverage is designed taking into consideration with various factors such as the Liability policy, which covers any damage that occurs to the other driver if you are found at fault in an accident. A Collision policy is the coverage for damage caused to your car due to a collision. A Comprehensive coverage is a broader one and covers loss or damage caused to the car apart from collision, such as, fire, theft, riot, windstorm, hail, glass breakage etc. Several other coverages need to be studied suiting your preferences.
Your car insurance policy could also be a combination of two or more coverages. Consider the following for determining your auto insurance needs
a. State Laws Forty seven states require you to purchase liability insurance. This coverage looks to compensate for bodily injury and property damage caused to another driver. About fifteen states require you to get enrolled with PIP (Personal Injury Protection) policy. Michigan, New York, and New Jersey are among them. Every State has different regulated minimum liabilities. Ohio auto insurance laws for example require you to purchase a minimum coverage of $12,500 as bodily injury liability, per person/per accident and $7,500 for Property Damage Liability while Arizona laws require different amounts.
b. The age and model of the car If your car is manufactured with a gap of more than a decade, it sure needs more of maintenance and is more susceptible to breakdowns, due to absence of modern safety features. The spare parts may seem unavailable and will impact your policy premiums as well.
c. Value of your car It makes sense to buy a comprehensive and collision policy coverages for a newer car, than for one which has already seen a long period of wear and tear. Make sure you are aware of the current market value of your car and select coverages accordingly.
d. Distance traveled or nature of your work - If you travel through highways often and especially during the night, you need a better coverage. Including towing and labor on your car insurance policy is a practical option to preempt mid way breakdowns.
e. Previous driving record This is of utmost importance. A clean record, free of any violations or court cases, will reward you with a better premium policy.
f. Neighborhood and climate If your neighborhood is a rough one, where you also park your car on the streets, you are more susceptible to thefts and vandalism and thus attract higher premium. Climatic changes like snowy regions require rework on engine and tires and hilly regions have cars going through ample deterioration.
g. Deductibles and other factors It is advisable to select a deductible which you can pay comfortably at a short notice. A higher deductible does mean lower premiums but this is the amount that will go first from your pocket when you make a claim, so try and strike a comfortable balance. Check for other technical clauses before selecting the car insurance policy. Remember, just choosing the cheapest premium might not be as cost effective in the long run as insuring with a company that honors your claim reliably and promptly.
Follow these simple and practical guidelines and it should become easy for you to select the right coverages to get a comprehensive car insurance policy that is cost effective and gives you peace of mind.
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