When you have to buy a product or service – i.e. something that you know is important, but at the same time isn’t exactly the first item on your ‘must have’ list – there’s a natural tendency to only get the bare minimum. As the old saying goes, money doesn’t grow on trees, and because of that, earnings are a precious commodity that requires financial savvy to get the most out of every dollar.
But when it comes to auto insurance – as with so many other things in life – you really do get what you pay for.
In order to drive legally, just about every state requires that you purchase auto insurance. Each state has a minimum amount of coverage that motorists are obligated to buy, the proceeds of which go toward costs that stem from being involved in an accident while driving, like if there’s property damage, repair expenses to fix the vehicle or vehicles involved in a crash, as well as for medical expenses should there be an injury.
As you can imagine, these expenses can cost thousands, if not tens of thousands of dollars. But with an auto insurance policy in place, the only thing you’ll have to come up with is the deductible, which is the portion of coverage that the owner is responsible for before coverage picks up the difference.
This is all well and good, but when you only buy the minimum amount of coverage that your state requires, it’s a roll of the dice when it comes to determining whether the amount that’s in place is going to be sufficient. For example, should you be deemed responsible for the accident, not only will your insurance policy have to cover any repair or medical expenses, but also those of the other person or persons involved. And once your policy’s limits are exhausted, you’ll have to pay for the difference out of pocket, which can result in financial ruin, draining all or a substantial portion of the savings you’ve worked years to build.
Comprehensive coverage is best
Not only is it a smart move to have more liability and collision coverage than your state’s minimum, but you should also consider investing in a comprehensive policy. There’s an almost unlimited number of scenarios that can happen on the roads, in parking lots or at your home, each of which can cost a substantial amount of money to fix. As its name entails, comprehensive auto insurance provides for those scenarios that collision and liability don’t cover, such as theft, a broken windshield, flooding, fire and earthquakes.
These may not seem like events that you’re likely to experience, but you’d be surprised how common they are. For example, when it comes to flooding, every state in the country has dealt with it in the last five years, according to the Federal Emergency Management Agency. It’s also the No. 1 natural disaster in the United States.
Even vehicle fires are common. In fact, according to the National Fire Protection Association, there’s a vehicle fire every 96 seconds in the U.S. alone, stemming from an accident, electrical glitch or defective fuel system.
Just about every policy is different in terms of what comprehensive covers, so it’s a good idea to talk to your provider to get some of the specifics before securing coverage. Rodent damage, for example, is something that not every comprehensive policy includes, so if infestation has ever been an issue where you live, be sure to ask about this scenario.
For more information on comprehensive and how to get a policy that’s both affordable and sufficient, speak with RC4 Insurance Agency, LLC today.
Article from Selective Insurance Company
