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Crucial Tips To Consider When Buying Car Insurance In Today’s Economy

The economy has made it so that drivers have a hard time choosing the right car insurance policy. Most people first consider the bottom line without taking their best interests into consideration. Being involved in an automobile accident can happen to anyone regardless of their age, gender, race, model of car, or even driving experience. Here is some information to consider when choosing a car insurance policy.

 

The first thing to take into consideration is whether or not your car is financed. If you have signed car loan documents stating that you will maintain comprehensive or collision insurance on your vehicle at all times then you must comply with this stipulation or your vehicle could be repossessed.

If you bought your vehicle out right then liability only coverage may be for you. States cannot mandate anything besides no fault and liability insurance coverage for drivers so meeting the minimum coverage can be an asset and a liability.

The next thing to think about is whether or not you would want to repair your car if it has been damaged. If you drive a car that is 15 years old then it probably is not worth the time or the financial investment to purchase a collision or comprehensive car insurance policy. However, if you drive a 1965 classic Ford Mustang that would cost thousands of dollars to restore then having this type of insurance coverage can save you a lot of money in the event of an accident.

Third, consider your personal finances. If you are struggling just to pay your rent and other fixed expenses then a pricier policy might not be wise because you might allow your insurance premiums to lapse in order to keep your head above water. If you have extra money each month, then you might want a car insurance policy that has additional coverage besides a liability only policy.

For example, if you have a lot of friends that borrow your vehicle, then you might want to add additional drivers to your car insurance policy. If a friend or other person takes your car and are involved in an accident then you will have to pay out of pocket for the damages which can cost thousands of dollars. Never just purchase a policy without knowing the coverage amounts that it contains. Insurance agents are great at helping people weigh the pros and cons of several types of insurance policies.