If you're in the market for car insurance, it can be very easy to get confused by all of the options out there. Most car insurance plans have a variety of different types of coverage and levels of protection. If you have a family, you'll likely want insurance that not only meets your legal responsibilities, but also protects you and your children in the event of an accident.
An experienced and knowledgeable insurance agent or broker can provide helpful car insurance recommendations. However, it can also be useful if you do your own research. Think about your family, specific needs and available resources. Then you'll be in a better position to evaluate different car insurance recommendations and choose the plan that's best for you.
Here are a few factors you'll want to consider:
- Liability coverage. All car insurance recommendations will include liability coverage. Liability covers any responsibility you may have for damages or injuries that another party may suffer. If you cause an accident, liability coverage steps in to pay for any damages.The government sets minimum amounts of liability coverage that each person must own. However, it usually makes sense to have more than the minimum, especially if you have a family. If you only have the minimum, you'll have to pay any other damages out-of-pocket. You could be exposed to lawsuits, which could put your family in a precarious financial position. It's better to be cautious and have a sufficient amount of liability coverage.
- Collision/Comprehensive. This type of coverage pays for damages to your vehicle. If you cause an accident, liability coverage will pay for damages to the other party's vehicle, but it won't cover your car. That could be a big problem, especially if you need your vehicle to get to work or to shuttle kids to school.By carrying collision, you can be sure that you won't be stuck without a vehicle in the event of an accident. Comprehensive an enhanced form of collision insurance that covers other non-accident damages, like car theft or damages from hitting a deer or other animal.
- Uninsured motorist. If another party causes an accident, their insurance company usually covers damages to your car and any medical bills that you may have. However, that's not possible if the driver doesn't have insurance. In that case, you may be faced with substantial out-of-pocket expenses.Uninsured motorist coverage pays for those expenses in the event that the liable party doesn't have insurance. Adding uninsured motorist coverage to your policy can be a great way to make sure that your car gets repaired and that your family gets the medical care that they need.
- Deductibles. If you have kids, you likely face a ton of expenses on a regular basis, from food to school items to daycare costs. Keeping and sticking to a budget is critical. One of the ways to manage the cost of insurance is to raise the deductible that you have to pay before insurance kicks in.However, while having a high deductible will bring down your premium payment, it could also put you in a bad spot if you're ever in an accident. You'll have to pay that high deductible before you receive any payment from the insurance company. Think about your savings and cash situation. If you keep a lot of cash on-hand, it may make sense to have a high deductible. If not, it's probably worth it to pay the higher premium and avoid the risk.
Talk to an agent about your situation. They can make car insurance recommendations to meet your needs and budget.