Which Car Insurance Coverage Do You Really Need?

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There are lots of costs that come with running a car, with fuel and maintenance expenses potentially leaving a noticeable dent in your budget on a regular basis.

Insurance is one of these essentials, but because it’s usually only purchased annually, you might forget about it until the last minute.

If your renewal date is looming and you don’t know what type of cover, package or provider is suited to your needs, read on for a rundown of the options and caveats to consider.

Getting the right cover doesn’t have to be costly

The temptation to go for the most basic car insurance package in order to save a few bucks is strong, but a low price doesn’t mean you’ll be getting good value for money.

In fact, at a time when you can find cheap car insurance through comparison sites like Cheap Insurance, there is no longer a need to compromise.

By seeking out quotes from a cavalcade of insurance companies, you will be able to match your budget with a policy that provides plenty of protection against worst case scenarios that involve your vehicle.

Understanding liability

Most states have a minimum insurance requirement for drivers, and this usually means that if you are involved in an accident then you’ll have enough cover to account for the costs of other parties involved.

Even if you consider yourself to be a safe driver, there’s no way you can control how everyone else on the road behaves. This means that minimum insurance won’t protect you if someone else is responsible for an accident you’re involved in, and they don’t have insurance at all.

So, while you don’t theoretically ‘need’ anything more than straightforward, low level liability cover as part of your car insurance package, this won’t serve you well if the situation is more complex.

Instead, you should choose a package that is at the upper limit of your budget and get as much cover as is affordable. Being protected against things like vehicle theft, vandalism, collisions with uninsured drivers, fire, and everything in between may come at a price, but this will still be cheaper than the alternative.

Appreciating the value of your vehicle

Another reason to embrace car insurance, rather than only seeing it as a financial burden, is that it is useful for preserving access to your car.

A car is worth more than just the sticker price, particularly if you need it for your daily commute, to run errands, or to visit friends and family.

Unless you’ve got lots of cash set aside, an automotive accident can leave you carless indefinitely. Insurance steps in to solve this, helping you get back behind the wheel and maintaining your normal routine as a result.

So, ask yourself if you can afford to live without car insurance, because of the disruption that an out-of-action vehicle will cause? The answer is almost certainly ‘no.’

Choosing a quality insurer

The last point to consider when deciding on a car insurance package is which insurer you should go with.

We already discussed the impact that comparison tools have on broadening your options, but it also pays to do your own research to check that prospective providers are worthy of your custom.

This is where paying more for a package that comes from a reputable, respected insurer, rather than choosing one from the bottom of the barrel, will once again work in your favor.

You want an insurer that will be there for you when disaster strikes, providing support and advice, not one that will leave you out in the cold when you need them most.

Hopefully, you now feel a little more confident about finding the right car insurance, and you are willing to see this as an essential investment in your financial stability, rather than a necessary frustration of owning a car in the modern age.

 

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About the Author: Brian Novak