Reviewing Your Auto Insurance Needs: What Type Of Coverage Is Right For You?

Insurance Blog

Many people simply continue to renew the same exact auto insurance policy year after year. The problem with this is that many people's insurance needs will change over the years. Consequently, they may find that they are paying for coverage they don't need or failing to get all of the coverage they do need by choosing to auto-renew their current policy. Thankfully, reviewing your insurance needs and selecting the right type of coverage for you can be a quick and easy process. In fact, by the time you are done reading this, the review process will be complete. All you need to do is complete each of the steps outlined below.

Step 1: Review The Value Of Your Vehicle

When purchasing collision or comprehensive auto insurance, your policy will always be limited by the value of your vehicle. This is because in the event that the cost of repairing your vehicle outweighs the value of your vehicle, the insurance company will simply declare your vehicle a total loss and compensate you for the resale value at the time your accident occurred.

Over the years, the resale value of your vehicle will decrease as a result of depreciation. However, adding new parts or customizing your vehicle in any way may cause a temporary increase in your vehicle's resale value as well. Taking the time to determine how much your vehicle is worth each year will allow you to ensure you are not paying for more coverage than you actually need or can ever collect on.

Step 2: Review The Risks To Your Vehicle

The higher the risk is that your vehicle will be damaged or stolen, the more likely you will be to make use of your car insurance coverage. This is why it is so important for you to carefully review the risks to your vehicle each year before purchasing a new policy.

When reviewing the risks to your vehicle, be sure to take a moment to consider all of the changes in your life over the past year. For instance, did you recently take a job in a new part of town? Did you move to a new apartment that requires you to park on the street each night? Have crime rates in your neighborhood spiked over the last year? Taking the time to ask yourself these types of questions will allow you to determine whether or not you could benefit from purchasing full coverage insurance or if basic liability coverage is enough for you.

Step 3: Review Your Assets

In the event that you are involved in an accident, it is important to ensure you can cover whatever costs are not covered by your insurance company. This includes your deductible and any damages that you do not have coverage for. In order to ensure you are purchasing enough coverage for your needs, you will need to take a moment to look at your assets and determine exactly how much you could pay out-of-pocket in the event of an accident.

Step 4: Review Your Debts

Finally, you will need to take a moment to look at any debts that may be tied to your vehicle. For instance, if your vehicle is currently being financed, you will need to cover this debt even if your vehicle is seriously damaged. In order to avoid a serious financial loss, you will want to ensure that you have chosen an insurance policy that provides coverage for this debt. In most cases, this will mean purchasing a policy that includes liability, collision, and comprehensive coverage.

In Conclusion

By the time you have reached this point, you should know exactly what you need from an insurance policy. However, if you find that you are struggling to complete any of the steps outlined above, taking the time to consult with a reputable insurance broker like one from Nalley Insurance Agency LLC can prove quite valuable in helping you to complete this task.


27 December 2014

Auto Insurance:  Even High Risk Drivers Need It

About ten years ago, my auto insurance was cancelled. This took place after one too many accidents. I was now a high risk, and my provider was not willing to keep me on any longer. Since there was no way that I was going to get behind the wheel without coverage, I started checking out plans with high-risk insurers. Some were not all that great, but others offered benefits that were very close to my old plan. I soon found a provider who would accept my application, and I began to be a little more careful with my driving. If you are having trouble buying auto insurance, let me help. I'll tell you what to look for in a high-risk provider, and how to find the best one in your area. In no time at all, you'll be covered and ready to get back on the road again.