Choosing The Lowest Insurance Cost Likely Isn’t Your Best Plan
We’re flooded daily with insurance commercials claiming that shopping with them will get you the lowest insurance premiums of any company out there. Saving money on your insurance is important, but the lowest insurance premiums are usually accompanied by the lowest insurance coverage.
Determining what insurance coverages you need is something that only a qualified local insurance agent can help you decide. We care more about you being covered adequately than simply giving you the cheapest premiums.
Do you need the auto insurance coverages below? Discuss with us & we’ll help determine what makes the most sense for your personal needs.
Collision Coverage: protection for your car from damage whether at-fault or not. Premiums weigh heavily on the value of your vehicle.
Comprehensive Coverage: pays for damage to your vehicle from things such as contact with an animal, fire, theft or vandalism.
Medical Payments: Commonly known as MedPay or PIP, this covers medical bills as a direct results of an accident regardless of fault.
Uninsured Motorist: Coverage for being involved with an uninsured driver. Both physical damage (your car) and bodily injury are offered.
Underinsured Motorist: Coverage to help cover a gap from a motorist who has insurance, but not enough to cover the loss.
When deciding on what coverage options to have, take these situations into account:
Scenario 1: You purchase a low cost, low coverage liability policy with only $25,000 in Property Damage. You rear-end a new, two week old Toyota Camry totaling the vehicle. The Camry’s replacement cost is $35,000. You have to pay $10,000 out of pocket.
Scenario 2: You are t-boned by an uninsured motorist and have extensive medical bills in excess of $50,000. You do not have uninsured motorist coverage or personal health insurance and your auto medical payments only cover the first $10,000. You have to take the uninsured driver to court to pay your $40,000 in medical bills, in the meantime, you’re responsible for the $40,000 in bills.
Regardless of whether you’re shopping for a new home, auto, boat or motorcycle insurance policy if you want the lowest insurance premiums you should be aware that you’re usually lowering the amount of insurance coverage you have. Depending on your situation, this may not be a wise decision because it puts your financial future at risk by carrying low limits. As always, reach out to our insurance agency with any questions.
It’s now time to enjoy some amazing fall camping excursions, calm boating on the lake or a motorcycle road trip. Each year we’re asked by many of our customers about the possibility to cancel your insurance policies on your summer toys like motorcycles, RVs, boats and ATVs. While you may not be using these alternative vehicles during the fall and winter months, your vehicles may be damaged and insurance claim would need to be opened. If you cancelled your insurance policy, you may be forced to pay for repairs or replacements out-of-pocket. During the cooler months while your toys are parked events can occur that could get expensive without a valid insurance policy.