How do I choose the correct car insurance?
There are numerous things to remember when purchasing your car insurance. “The Golden Rules” include the following:
- Never drop a type of coverage unless you actually know what you are giving up.
- Never eliminate a coverage unless you know exactly how much money you are going to save by doing so.
- You are better off erring on the side of being a little over-insured as compared to being grossly under-insured.
- Do not purchase more insurance coverage than you can reasonably afford.
- If there is any aspect of the insurance you do not understand, ask your agent to explain it in plain terms to you. As you know, the wording of auto insurance policies are often in difficult to understand “legalese” even in the simplified policies. Do not hesitate to ask your agent if you have any questions. In the alternative, call your lawyer who will explain the meaning of the terms. Your agent or lawyer will tell you if you are fully protected.
- Purchase as much “uninsured” and “underinsured” motorist coverage as you can possibly afford. These two coverages are traditionally very inexpensive compared to your liability insurance. They protect you against people who don’t have enough insurance or have no insurance, and there are a huge number of people who currently cannot afford insurance. Accordingly, you are protecting yourself from those people who are out on the roads without any insurance and may run into you.
- Always choose the “full tort” option unless you can’t afford insurance otherwise.
