Understanding The Importance Of Motorcycle Insurance

4 Guidelines To Follow When Purchasing Car Insurance

by Raymond Gibson

Car insurance is an essential purchase for any driver or vehicle owner. When purchasing car insurance, there are quite a few things that you need to consider when selecting your coverage options. To make sure you're properly protected, it's important to follow a few guidelines when purchasing your car insurance policy.  

1. Choose a Deductible That You Can Afford

Picking the deductible for your car insurance policy is one of the trickier parts of buying car insurance. Opting for a higher deductible can help you save money on your car insurance premium, but when it's time to use your car insurance, you need to make sure that your deductible is an amount that you can comfortably afford to pay. Make sure to carefully weigh the savings of a higher deductible, and consider putting these savings into a separate account so that you have enough for the deductible when it's time to use your car insurance. 

2. Confirm That You're Covered for Any Business Activities That Use Your Vehicle 

If you use your car for your business, you need to make sure that your insurance policy reflects this business use. This includes "side hustles" like delivering food or groceries. In cases where your car doesn't have a rider or policy for business-related driving, you won't be covered if something happens when you're using your car for business activities. Tell your insurance agent what kind of business you conduct with your vehicle, and they'll confirm that your policy includes the proper coverage. 

3. Pick Your Coverage Wisely

Many drivers make the mistake of only purchasing the minimum amount of required coverage for their state. However, this can have huge financial consequences if you cause an accident or collide with an animal. Even a minor car accident can cost thousands of dollars to repair. Unless you have a vehicle with an extremely low value, adding collision and comprehensive insurance will make sure that you're adequately protected. 

You should also revisit your limits for property damage and medical expenses. The standard amounts for these aren't usually sufficient to provide adequate coverage. 

4. Be Picky When Selecting Add-Ons

There are several add-ons that you can add to your insurance policy like towing coverage, rental coverage, or roadside assistance. While these add-ons aren't necessarily an unwise addition, you should weigh the cost of adding them to your insurance versus paying for them with a third-party company. Or, if you have access to another car, you may be able to comfortably forgo rental coverage. 

Contact a local auto insurance service to learn more.