If you think you do not deserve what you are currently paying for your auto insurance coverage, you need to do something about it. If you are a good driver who had always maintained a sterling driving record, never had any accidents or insurance claims in the past, or enrolled yourself on a defensive driving program, you deserve nothing less but affordable rates. Although it is unclear that your insurance company is probably making money out of you, it is best to review your coverage policies first and to determine if they are what you need. The high insurance costs could be the result of unnecessary policies in your account that you may not be aware of.
Before making any decisions, it is prudent that you have understood the insurance terms and policies regarding the insurance coverage offered by your insurer.
Comprehensive and collision coverage: do you really need it?
There are special cases whom you need this type of coverage. If you are a good policyholder, which means you pay your insurance dues on time, your insurance provider will appreciate for doing that. Also, if you have previously arranged your payment to be automatically debited from your bank account, you might want to review what specific policies you are paying for. This will only take a little of your time and possibly save you hundreds of dollars on your succeeding payments.
Comprehensive coverage is advisable for people who purchased new vehicles or those vehicles considered as classic ones. Both of which would need a total protection that can only be offered by comprehensive auto insurance. This will usually span between 3 to 5 years and after which, it is up to you to downgrade the policy in favor of a cheaper one. Unfortunately, some people are paying the same premiums for many years without even thinking the money they spend on it.
Because of the nature of comprehensive or collision coverage, it is only natural that they are extremely pricey. This is because you are protected in case you had an accident to the full value of your vehicle regardless of who is the cause of the accident.
But then again, you have to remember that your vehicle will depreciate and change its worth year after year. To calculate, in less than 10 years it is no longer prudent to keep paying for $25,000 worth of insurance coverage because it is no longer necessary. In fact, many insurance experts will advise you to pick lower insurance coverage and save the money away. You can either use it to purchase a new vehicle or as a down payment for your new vehicle in the event of total loss.
It is time to drop your comprehensive coverage if what you are currently paying for your insurance premium is 10 times more than the actual worth of your vehicle. You can choose to go to basic liability coverage, which will protect you from property and injury liabilities.
Another important issue that needs to be cleared out is the rental car insurance. So, do you really need it? According to some experts, if you are driving a vehicle outside the US or Canada, rental car insurance is highly encouraged. Otherwise, if you are driving your own vehicle, which presumably has enough coverage, purchasing for rental insurance is no longer required.
