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| Auto Insurance -- When You Really Don't Need A Great Policy |
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| Written by Chinecherem Anyalewachi |
| Friday, 15 August 2008 16:40 |
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It does make sense to get the most extensive auto insurance coverage in most cases. However, in some situations, it's sheer waste of money... Auto insurance is one policy where the law makes it mandatory that you have one even when it might NOT serve your interests best. If you find yourself in such a situation, all you need is the barest minimum. This may sound wrong to most people but let me show you a case and ways to do this without running into big trouble... Comprehensive and collision coverage are great for an auto insurance policy. However, for an old car that's NOT a classic, they are NOT advisable. Why? Because your reimbursement is based on Kelly's Blue Book (Whatever that is). It's a convention that helps insurance companies determine what you should get when you make a claim. And do you know what? It's practically zero for old cars. This means then that getting the most extensive coverage for your old car won't do you any good. Yes, I know we've NOT talked about the liability part of your policy. I've got it covered. You can get a lot more for less this way... An umbrella policy is the perfect product for you. It's a lot cheaper but gives far superior coverage. With your auto liability coverage you'll still be very vulnerable to crazy liability claims. And you know, these attorneys can actually go after your assets if your insurance coverage can't pay up. It could cost a 35-year old man in an area like New York City around $300 extra to raise his auto bodily injury liability coverage from $25,000/$50,000 to $100,000/$300,000. However, with an umbrella policy, he'll spend less than that to get $1 million worth of coverage. Furthermore, he could make it $2 million by just paying only about $75 more. And I almost didn't tell you that it will cover all liability claims against you and NOT just those related to your vehicle. That said, you must still get at least the minimum required by law. And since you just want to keep the law, look for the cheapest offers. That way, you'll only pay for what you need -- Staying law abiding. Just make sure you do NOT need to file claims for your vehicle before going with this option. To cut down your cost on auto insurance, you'll do well to get and compare quotes from five or more reputable quotes sites. This exercise will take just about five minutes per site. However, it could save you hundreds in premium dollars. About the Author: If you want to find low cost auto insurance visit: Affordable auto insurance quotes in minutes and Affordable auto insurance quotes -- Quick and easy. Chimpuriche Chihunrumnanya writes on insurance. Kindly provided by LJ-Marketing.dk You are welcome to use this article on your own website, if you include the link just before this text. |
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