3 Things to think about when buying car insurance

Buying a car can be a fun, but also intimidating experience.  While there are seemingly endless amounts of choices, how do you know which one is right for you and your family?  One of the first things people think about is cost.  How much will this vehicle cost me each month.  Insurance Coverage is something that many people overlook when budgeting for a car.  Many people will go to the internet just to get any old policy.  But what do you really need? Here are three tips on how to craft a car insurance policy that keeps you and your new car COVERED.

1) What is your deductible? Higher isn't always better.   -- This seems like common sense, but it is the most overlooked part of many people's car insurance policy.  Many online insurance companies automatically give you $1000 deductible (some even pre-fill $2500) to make it seem like their rates are the cheapest.  But this is a trick.  Yes, a large deductible can save you a few bucks on your monthly bill, but usually the savings are a couple hundred bucks at best.  You might regret having such a high deductible when you have an accident, especially one where your car is not totaled.   Imagine being in a parking lot and a shopping cart comes full speed into your door. **SMACK**.  A damaged aluminum door might cost you almost $1500 to replace.  It doesn't take much damage for the repair costs on a vehicle to add up.  While you may enjoy the extra $20 a month you are saving by having a high deductible, the out of pocket costs can be substantial when a claim rolls around.  A much lower deductible, such as $500, can sometimes be a very minor cost increase that will save you big in the event of a claim.  This is why it is important to place your insurance in the hands of a trained Independent Insurance Agent, like Fearrin Insurance, Lon Brown Insurance or Key Henson Jackson.  A trained Independent Agent can help you make the right decisions on your car insurance and, because they represent MANY different companies, they can shop the market to find the terms most favorable to you!

2) Make sure you have Uninsured/Underinsured Motorist coverage. -- You are driving along, minding your own business, when out of nowhere **WHAM** you get hit by another vehicle.  The other driver gets out of the car and tells you he HAD insure but that it is no longer in force.  Well what do YOU do?  If you have Uninsured/Underinsured Motorist coverage, you can sleep easy when a situation like this arises.  More and more people these days are driving around with either no coverage or state minimum limits.  State minimum limits, in the event of a totaled vehicle or significant injury, might not be enough to cover the damage to your car and injuries to you and the other passengers riding with you.  It is best to play it safe and add UM/UIM coverage to your policy.  Even ifOD you own you vehicle and only have liability coverage, having UM/UIM on your policy is a necessity.  Don't let the carelessness of another driver become YOUR responsibility.  Adding UM/UIM coverage to your auto insurance adds only a few bucks a month to your policy.  Make sure you talk to an Independent Insurance Agent, like the ones at Brown Insurance, Fearrin Insurance or Key Henson Jackson, to be certain that your car insurance policy protects you against this unfortunate situation.

3) Seek 100/300/100 liability limits. -- We touched on this a little bit on Tip #2, but this is so important it deserves its own section.  State Minimum Liability Limits are rarely enough to insulate you in the event of a major collision that is deemed to be your fault.  A damaged front end can run you $10,000 easily.  That is why we recommend increased liability limits, and usually start at 100/300/100.  This means that for any accident, the insurance company will pay up to $100,000 per person for injury and $300,000 total for injuries.  It may also pay up to $100,000 for property damage.  So that's how we get 100/300/100.  State minimum limits can be as low as 25/50/10 in Indiana.  A trip to the ER for a broken leg plus physical therapy can cost in excess of $30,000...if you only have state minimum limits, you will be paying $5000 out of your own pocket.  You can pay a little more now or ALOT more later, please choose your liability limits wisely.  This is why seeing an Independent Insurance Agent, such as Fearrin Insurance, Lon Brown Insurance or Key Henson Jackson, is a great idea.  Their licensed insurance agents can help you make the right call when it comes to the liability portion of your car insurance. 

None of this should be construed as formal advice.  This is simply information to be aware of when making decisions related to your car insurance.  Here's to driving off into the sunset, protected and secure!