What Is Minimum Coverage And Do I Need More?

Minimum auto insurance coverage, in most cases, is not enough to ensure that you are completely protected from the financial and legal responsibilities that may result if you were ever to be involved in a car accident. Here are some facts about minimum car insurance coverage and whether it is enough for you.

What Does Minimum Coverage Include?

Minimum coverage is just that-the minimum. The amount of coverage you need to be legally insured as a driver. It covers you for a very specific amount of liability for any damage you may cause to others’ property, or for any medical expenses and lost wages that may incur as a result of an accident in which you are at fault. It does not provide you with any coverage for your own property or medical expenses for you and your passengers. In many cases the minimum amount of liability insurance may also not be enough if you are involved in a serious accident, and you will be personally responsible for the amount it costs beyond your coverage.

What Should My Minimum Coverage Really Be?

If you want to keep yourself protected as a driver, but still do not want to pay the high premiums, what types of coverage should you have? In general, it is smart to be sure you have both collision coverage, which will pay for repairs to your vehicle, and comprehensive coverage, which will protect you from natural disasters, theft, or vandalism in addition to your minimum liability coverage. This will protect you from out of pocket expenses for repairs to your own vehicle and any medical expenses you may incur. To keep your insurance expenses under control, choose the highest deductible you can afford.

The purpose of any type of insurance is to protect you from the expenses of unforeseen and unavoidable life events. Choosing coverage that provides the right protection is important, and finding a balance between protection and cost is the best way to do this.

Top Mistakes When Choosing Auto Insurance Coverage

You don’t need to be an expert to choose the right auto insurance policy, but you should be aware of some of the basics that will ensure you get the best rate for which you qualify and are protected appropriately. Here are a few of the most common mistakes made when choosing auto insurance, and the ways in which they can affect you.

Choosing Coverage That Is Too Low

Each state has a minimum requirement for liability coverage. In order to quote the lowest possible rates, some insurance companies will always quote at the state minimum. While this will ensure it is legal to drive your car, the minimum liability limit might not be enough to cover you properly in the event of an at-fault accident, especially if you own a home or condo.

When you request an auto insurance quote, be sure the liability limits are high enough to thoroughly protect you and your assets. If a serious accident occurs and your policy limits are quickly reached, you could find yourself in court facing a lawsuit for the rest of the damages, you can even have a lien placed on your home.

It’s better to be protected correctly in the first place. Sometimes an increase in coverage is only a matter of a few cents to a dollar.

Missing Out On Discounts

The number of discounts offered by most insurance companies today can be a long list. But it’s the major ones that you should pay the most attention to. The discount for having more than one policy with an insurer is often quite a large one. If you own a home, try to have your homeowner’s and auto insurance with the same company. It just makes sense, financially and for the sake of simplicity. You will not only get a discount on the auto policy, but on the homeowner’s premium as well.

Believe it or not insurance companies do offer new discounts from time to time to help their costumers save money on their insurance premiums. It is always important to ask your current insurance agent or insurance representative about any discounts that you might be missing out on.

Skipping Affordable Extra Coverage

Most auto insurance policies have an option for roadside assistance. Some may include it automatically, while others require a small extra premium. This coverage will give you protection in case of a mechanical breakdown, locking your keys in the car, or other situations in which you require help. The yearly cost of adding this coverage is far less than the cost of having your car towed, so it just makes sense to add it, but many people don’t realize it is even available.

Even if you have AAA it is still something that you may want to consider having. If you are in a bind and need to call AAA they might not be able to get to you for a few hours but the roadside assistance that your insurance company offers may be able to send someone out to you a lot sooner.

Small mistakes can cost you a lot of money, and have even more serious consequences. Avoiding them is simple if you are aware of them when you select an auto policy.  We are always more than happy to review your insurance coverage with our customers (new or old) and potential new customers.

Do You Need An Insurance Agent?

It seems that many insurance companies today no longer sell their policies through agents anymore, they sell insurance directly thru the company either online or over the phone.  It might seem that having an agent to help you purchase auto insurance is a thing of the past, but don’t discount the insurance agent just yet.  There are some very good reasons to consider using an insurance agent to buy care, home, renter’s, condo and motorcycle insurance.

 

Agents Know Their Products

 

Many of the customer service representatives who handle the phones at large insurance company call centers know the basics of the insurance policies, enough to help you select and purchase one.  But insurance agents, especially those who have been around for a while, understand a lot more about coverage and policy limits.  They can share with you a wealth of knowledge that will ensure you not only get the right policy, but the best rate and a good understanding of what you are paying for.  An agent will help you select the best possible coverage limits to fit your needs and what you need to protect.

 

Agents Are On Your Side

 

If the day comes when you need to file a claim, it’s always good to have someone who is truly on your side.  Especially in a complicated claim, your agent can walk you through the process and be there to answer all your questions.  An agent is also there to step in when there are disagreements with the adjuster or other involved parties at the insurance company.  Because your agent knows all about the policy and how the claims process works – and knows you, they will be able to go over any claims issues with you and your adjuster.

 

At this day and age I am sure almost everyone has had a bad experience with an automated phone system.  When you are calling to report an insurance claim one of the last things you want to deal with is getting lost in an automated phone system.  When you have an agent you can call your agent directly to report the claim and the agent can handle things for you from there.  You will talk to someone who you’re familiar with to report the claim and you won’t have to press a bunch of numbers on your phone before you can speak to an actual person.  

 

Agents Keep Your Policy Accurate

 

A good agent will take the time to review your policy with you and make sure that everything is accurate and you are still carrying the coverage you need.  An agent knows when changes in your life might affect your insurance coverage needs, such as a marriage, change in job or a child getting their driver’s license.  Large insurance company call centers can’t always provide that level of personal attention and if you have to call back there is a good chance you will end up talking with someone else and have to go over everything all over again.

 

Are Agents More Expensive?

 

There is a general view that an insurance policy purchased through an agent will cost more than one purchased directly.  That isn’t necessarily true.  The best rate for you may well be one from an agency, so don’t discount quotes from agents when you are shopping for car insurance.  You might get the best rate along with the service only an agent can provide.  And for some people paying a little more to receive personal service is more than worth having to pay a little extra, especially when there is a claim that needs to be filed or when you have important changes to make to your coverage. 

 

 

You might not feel that you need an agent for your insurance, but there are certainly some very good reasons to take the time to meet with a one and see if it turns out to be right for you. 

 

Here at the Daigneau Insurance Agency we are always willing to make time for our customers and potential customers whether it’s to make a payment over the phone, add a car to their policy, file a claim, change an address or they just have some questions (even the “what if”) questions.