Car insurance check up time

Well, it's that time of year again. Car Insurance renewal time. And with that renewal notice comes the shopping around. I do it every year to make sure that a) I'm getting the best coverage for my needs and b) that I'm getting the best coverage at the best price. I call it my annual financial check up. I also do it with my home owners since I usually try to keep them together. Most companies will offer you a discount if you have more than one policy with them. So do you compare rates on a yearly or semi annual basis? How do you know that you have the correct coverage for you? And more importantly are you getting the best rates? Do you know what questions to ask when shopping around? Do you know what answers to give? Let me give you the crash course that I tend to give my customers. This is not meant to be all inclusive and is not a substitute for getting your insurance questions answered by a licensed agent in your state.

First of all, full coverage doesn't necessarily mean fully insured. Full coverage to most insurance companies means that your car is fully coverage against collision or damage. Full coverage does not necessarily extend to uninsured motorist coverage, rental, medical or towing. If you are asking for full coverage, make sure that you ask if it includes these additional items and then decide if you really need them. I don't need towing, it's included with my car loan so I decline it. Also ask how they determine the value of your vehicle. Which blue book value to they use? Do you know the blue book value of your vehicle? If you car is more than 7 years old and you do not have a loan on it, you should look into if it is economical to have full coverage on your car. I cannot tell you how many people will come in and put full coverage on a 10 year old plus vehicle, with a $500 deductible, pay $800 a year and then get mad when they have that vehicle totaled out and only get $500 out of the claim. Full coverage is blue book value less your deductible or the cost to repair the vehicle. On older vehicles, most insurance companies will total it out instead of repairing it. Just check the values and weigh your options.

Secondly less coverage does not always mean a lower price. Non standard insurance companies are designed for high or higher risk drivers. People with not so perfect driving records or credit. So if your state minimum is all they write in the limits of liability, ask yourself if you are involved in an accident, heaven forbid, and it's a bad one, will those state limits cover all the parties involved? Chances are no. Make sure that you are carrying limits that are high enough to protect you.

Most importantly, find an agent in your area that you can ask these questions of and get the proper advice from. Insurance is a tricky business and it's up to you to be informed.