Always ask the right questions about your auto insurance (part 2)
Always ask the right questions about your auto insurance (part 2)
10 second overview: Taking ten minutes to sit down and truly question your auto insurance coverage could save you thousands of dollars in the long run. If you aren’t 100% sure what you are covered for should the worst happen, take a few moments to ask yourself a few questions. In the second part of this two-part series, SmartCitti’s insurance expert, Mark Chappell, shares tips to help you understand the kind of coverage you might need from your auto insurance. Find out the essential questions you should ask to find out what’s included in your coverage plan and what’s not.
The secret to finding the best auto insurance coverage isn’t just the price you pay or how quickly you can buy it. Truly great auto insurance is always there to fully cover you when you need it most. Claims should be taken care of quickly and without any issues, leaving you free to get on with enjoying your life. Auto insurance coverage like this exists and we can help you find it.
The key is using an insurance company like SmartCitti who can help you find the best deals with a range of bonuses and benefits to suit your unique needs. You also need to ask the right questions and understand all the things you should consider to find a policy option(s) that’s right for you.
The vehicle you own, your personal priorities and your budget all factor into your unique auto insurance needs. Before comparing policies and insurers, evaluate how you use your car and what risks you face to figure out which options make the best sense for you. So, what questions should you ask while looking at and reevaluating your auto insurance coverage?
Take a look…
For many people, owning a car is an investment of sorts and ensuring a decent resale value is very important. So, if you put down a considerable sum into owning a car or getting your car customized to taste, then you’ll probably want the car restored to its original condition if it’s ever damaged in an accident.
Key question: “Do I love my car so much I want it perfectly fixed if its ever in an accident?”
If your car is your pride and joy, you'll probably need to consider the fullest range of insurance—including collision, comprehensive and even glass coverage in case your windshield gets smashed. However, if you drive an old truck or car, or have purchased a car to serve simply as a mode of transportation and want to save on premiums, it may be wise to limit your policy to liability and the most essential repairs.
Do you absolutely need your car every day—for instance, to commute to work or drive the kids to school and other activities? Do you drive just twenty miles a month or do you drive hundreds of miles a week?
Key question: “Do I use my car a lot or just a little?”
SmartCitti Insurance Expert Mark Chappell advises that you make sure your policy reflects how much you use your car. He also stresses that, “If you don’t drive a lot, you may want to opt for mileage-based insurance.”
Did you know that a personal auto insurance policy will not provide coverage if you transport paying passengers through a ride-share service such as Uber, or if you deliver pizzas, drive as a courier delivering parcels, or use your car for any other commercial activities?
Key question: “Do I use my car for paid or other commercial activities?”
Mark Chappell says: “If you use your car not just to get to work, but to also perform tasks for which you get paid, commercial auto insurance is an absolute necessity. Always check with an expert if in doubt.”
Certain types of vehicles such as classic cars and expensive sports cars require special auto insurance coverage. There’s also a new category of vehicles known as ‘safe cars’ which have all the latest safety features and good safety records. Driving one of these will get you discounts on your insurance coverage with the right insurer.
Key question: “Is my vehicle special or is it a standard, average car?“
Insurers collect an immense amount of data to help them accurately analyze how much they should charge for insurance, and they know in precise detail what types of cars, makes and models are more (or less) likely to get into accidents and incur claims.
“An expensive luxury car with an onboard computer may be more likely to be stolen and its bodywork costs will be more than an old, beat-up runaround. So, if you own one of these, your insurance will be priced accordingly,” Mark Chappell says.
If you still owe money on your car finance payments or if you are required to return it in good condition when your lease expires, you’ll likely be required to insure the car for its full value in dollars. You will need to ask an expert about the best type of auto insurance coverage for your own situation.
Key question: “Have I completed my car payments? Do I need to return my car at some point if it is leased?”
Many people drive leased cars or autos which they’re yet to pay off completely, and according to Mark Chappell, there’s also a solution for such cases. “You could look at taking out collision and comprehensive insurance to cover any damage to your car, while supplemental gap insurance will cover the rest.”
Keep in mind that your insurance options and costs will also be affected by your age, gender and driving record. Your credit score can also impact your insurance rates.
Key question: “Do I have a good credit score and driving record?”
“Once you’ve talked things through with an expert like one of SmartCitti’s agents and we’ve looked at your needs and priorities, and understood how insurance options will match them, you’ll be better prepared to make an informed decision about the types and levels of coverage to buy,” Mark Chappell says.
Nearly every state in the United States has a legal requirement that you have to take out minimum liability auto insurance coverage for your car. You must check your state’s mandates and ensure that your insurance coverage complies with that.
Key question: “What legal requirements do I have? Can I afford to be sued if I’m not fully insured?”
Minimum levels of auto insurance coverage which are required by law are often inexpensive.
Mark Chappell advises: “The problem to keep in mind is that if you had a serious auto collision, you could be sued for a huge amount of money. Depending on your assets and financial risk tolerance, to be safe, you’ll probably want to purchase a higher level of liability coverage.”