Is Your Car Insurance Coverage Enough or Too Much?

Many folks don’t worry too much about their car insurance coverage beyond their initial car insurance quote and their monthly premium. They don’t really give it a second though until there’s a rate increase or until they’re involved in a car accident and they discover that the coverage they have isn’t enough.

On the other hand, some folks may worry that they have too much coverage, that they’re paying too much for their car insurance. These are the folks that constantly get online car insurance quotes, and who grumble whenever that bill shows up.

Here are some factors to look at when deciding if you have enough or too much coverage:

  • How much do you drive? If you don’t drive very many miles in a year, you’re less likely to get into an auto accident. Some policies are designed for people, for example, that drive less than 5,000 miles in a year.
  • Do you have roadside protection? Roadside protection helps you out in the event that your vehicle breaks down. Many people love having roadside protection, because it means that they’ll never be overcharged by a tow truck. On the other hand, many people can do without it.
  • What are your deductibles? You can usually safe a few bucks on your premiums by raising your deductibles. The main thing to think about is whether you can afford to do this. If you can pay $1,000 out of pocket for personal injuries in an accident, then you’re OK with a higher deductible.
  • GAP insurance. If you have GAP insurance through your lender, you may be able to raise your vehicle accident deductible to match whatever your GAP will cover.
  • Is your car paid off? If it is, you might consider dropping collision coverage, especially if your car is older and doesn’t have much in the way of cash value.

Make sure you’re getting all of the discounts you’re entitled to, as well. Talk to your insurance agent about a new car insurance quote to make sure you have the coverage you want and that you can get it for a price that’s in your budget.

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