car insurance car insurance what you need to know
64If you have a car, hopefully you have car insurance. Car insurance is very important for two reasons:
1. If your car is in an accident and there is property damage or someone is hurt or killed, you can avoid financial disaster by having the correct type and amount of insurance.
2. If someone damages your car, you can be reimbursed for the repairs. I’m not just talking about accident damage. —A lot of us like our rides fixed up with some nice equipment. When was the last time you heard of someone having their car broken into, an expensive stereo system stolen, and then getting enough money to make the repairs to the car and have the stolen property replaced? If you’ve heard a story like that, the owner had the right car insurance.
So, what is the correct type of car insurance? How much do you need? And where do you go to find out? The real question is what needs to be covered and to what extent? This can be broken into two parts: What is required by law and what really protects you and your family?
Obviously, if it is required by law, you will be required to have it. Beyond that you consider your needs and those of your family.
When you purchase any kind of insurance, it should be with the thought of providing yourself with some type of security or benefit. (That, after all, is the point of having insurance.) You don’t want a lot of insurance that will not be of benefit you. (Why pay for something you don’t use?) Just as a quick example: If you have a car that is 15 years old and has no special value; the blue book value is, say, $500.00. You would not want full coverage on this vehicle. You would only want enough insurance to cover medical bills and damage to someone else’s property (in the event you were determined to be at fault in an accident}. And you certainly don’t want an add-on like CUSTOM PARTS AND EQUIPMENT—because with a car like this there is no reason you would have any fancy extras—and these add-ons can be pricey. (You might have this type of insurance to cover that expensive stereo system mentioned above.)
The bottom line when shopping for car insurance is the same as for any other purchase. What is going to give you the most for your money? And of course in this case that decision has to be influenced by the fact that you are insuring yourself and your family against a life changing event. What will happen to your family if you are deemed responsible for a major accident and do not have sufficient coverage? How well will they fare financially, if you are killed in an accident? As far as that goes how will you all manage if you are even temporarily disabled? What will replace your income? Will your spouse be able to maintain the household? Or, retire as planned? Will your children lose their chance to go to college? Did you know you can get coverage that will help replace lost income or provide your family with a death benefit? (You might even be able to get insurance for that state-of-the-art stereo system your teenager had put in his junker.) Did you know you can purchase coverage that will help make up for the other driver’s lack of insurance if he is at fault in an accident with you? We don’t like to spend time thinking about unpleasant issues, but these are just a few of the things you should be counseled on when you are looking for car insurance.
Having a good working relationship with your insurance agent is a must. He will be familiar with the types and amount of coverage you are required to carry. He will be able to advise you about the influence the size of your deductibles will have on the cost of your insurance. He can guide you in setting wise limits and buying add-ons that will protect you against drivers with inadequate insurance. He can guide you through the maze of overlapping and redundant coverages so you can get the protection you need as economically as possible. You should plan to spend time discussing your needs with him. He can help you make car insurance part of your plan for a secure future.
