Choosing The Right Car Insurance Coverage For Your Needs: 3 Questions To Answer Before Buying A Policy

Simply having a basic car insurance policy may not be enough to ensure you are covered in a variety of situations. That is why it is important to take the time to assess your personal insurance needs before committing to a policy. Taking the time to answer the three questions below can help you to accomplish this task.

Question #1: Does Your Policy Offer Enough Coverage For A Serious Accident?

Being involved in a serious accident can easily result in significant property damage and personal injury bills. If you choose to purchase a policy that offers a minimal amount of coverage in these areas, you could be held personally liable for any costs that exceed the benefits provided by your policy. The best way to prevent this is by choosing a policy that offers adequate coverage for all the possibilities that can occur. 

Question #2: Can You Afford To Replace Or Repair Your Car If Necessary?

There are a variety of situations in which you could find yourself needing to cover the cost of any damages that happen to your vehicle as the result of an accident. For example, if you are involved in a single-car accident, are found legally at fault for causing an accident, or if you are involved in a hit and run accident, you will not be able to file a claim against the other driver's insurance policy. In these situations, you will need to pay to either replace or repair your vehicle unless your car insurance policy offers the required coverage. If you do not feel confident in your ability to cover these out-of-pocket expenses, you will want to make sure that your policy includes collision coverage, as well as uninsured motorist coverage.

Question #3: Are There Currently Any Liens Against Your Vehicle?

In the event that your vehicle is seriously damaged, you will still be responsible for paying off any liens against your car even if you are no longer able to drive it. For this reason, it is vital to ensure your car insurance provides the proper coverage to cover these liens regardless of the circumstances that lead to the vehicle being totaled. This means purchasing an auto insurance policy that includes both collision and comprehensive coverage options.

A Final Thought

While answering these three questions can help to point you in the right direction when purchasing an auto insurance policy, there are a wide variety of factors that can potentially impact your insurance needs. In order to truly evaluate your insurance needs and make sure you are getting the best available policy, it is a good idea to work with an auto insurance agent in your area.