When shopping for a new car insurance policy, the level of coverage you decide on will have a big impact on the rate you will pay. While comprehensive auto insurance may be more expensive than conventional insurance policies, you will receive the highest level of protection and coverage available.
As its name implies, comprehensive auto insurance covers your vehicle no matter what happens. Regular insurance policies only cover incidents of theft or accidents. Comprehensive insurance protects you in the event of vandalism, natural disasters, and more. In fact, with most of these types of policies you don’t even need to identify the person or event that caused the damage to collect on a claim. Most car leases require this type of insurance policy.
Nearly every state has a mandated minimum car insurance coverage level that you must maintain. These minimums usually involve bodily injury liability and property damage liability. Some states also require Personal Injury Protection (PIP), or Medical Payments (MedPay) which covers your own medical expenses as well as any lost wages and other costs may come up if you’re injured in an accident.
While these minimum are a good place to start, if you have assets to protect you will want higher limits. In the event of an accident you could be sued for medical costs, which can easily exceed a policy with low liability limits. If you have assets to protect, consider carrying at least 100/300 limits of bodily injury liability. The extra cost of higher limits will be more than made up for by the extra protection you will receive.
Is Comprehensive Auto Insurance Right For You?
While the level of personal protection provided by these policies is unparalleled, they are not for everyone. If you have an older car, the extra expense of comprehensive auto insurance probably will not be worth it. Why pay hundreds of dollars a year more in premiums when your vehicle is only worth a few thousand?
A comprehensive auto insurance policy will also cost you more than a conventional policy. Comprehensive insurance can run you as much as $40 per month or more over and above the base rate you pay for your regular insurance. If you have a history of insurance claims or a poor driving record, getting comprehensive policy will be especially expensive, so think twice before deciding you need one.
However, if you drive an expensive new car or live in an area where a variety of calamities might befall your automobile, such as hurricanes, floods, or blizzards, then getting comprehensive auto insurance is often a good idea.
One way to hold down the cost of these policies is to increase your deductible. Opting for a $500 or even $1000 deductible could save you hundreds of dollars a year on your insurance rate. However, it will mean more money out of your pocket in the event disaster strikes. If you are the type of person who will sleep better at night knowing that you are fully covered and that very little money will come out of your pocket, then you should opt for a lower deductible and a higher rate.
No matter what level of coverage you decide on, shopping around for a comprehensive auto insurance policy will undoubtedly save you money. Each insurance company evaluates these types of policies differently, so you are likely to get widely varying rate quotes. Remember that in nearly every state there are dozens of carriers looking for your business, so comparing rates among even five or six insurers is still only skimming the surface.
Comparing comprehensive auto insurance rate quotes is quick and easy using this website. Simply enter your zip code up top and you will be instantly connected to the best discount insurers in your area. You can compare rates with just a few mouse clicks. Best of all, there is no obligation when shopping around, so feel free to compare rates from as many companies as you want.