Even though it’s better to err on the side of caution, it’s definitely best to get it right. This is especially true if you want to enjoy low price auto insurance. You can’t afford to duplicate coverage or buy coverage types that won’t really do you any good and then expect to still enjoy low rates. Here’s something for you to think about…
Does it make sense to have comprehensive and collision coverage types on an old car? Don’t forget that if you file claims your insurer will NOT look at how much you’ve contributed in premiums to decide how much they’d compensate you. They look at what is referred to as the Kelly Blue Book value for your car at that point in time.
Believe me, if that book says your car is worth zero dollars, you’d get nothing irrespective of how long and faithfully you’ve paid your premiums.
Therefore, if yours is an old car, check and see what your Kelly Blue Book value is at the moment. If it’s very low, then omit these coverage types. And, if you already have it for an existing car, it does make sense to drop them once they do NOT give you the right level of return on your investment (Yes, insurance is a form of investment that you make in order to protect your other investments).
If you’re really committed to getting a very cheap motor car insurance quote then you must look out for these types of unnecessary coverage types and omit them from your policy.
And, don’t be careless. Review your policy from time to time. Life is NOT static. You might have outgrown a particular coverage type. Can you believe that some folks forgot to remove cars that they’ve NOT used for up to six months from their policy?
Remember how hard you work to earn each dollar. You simply can’t fritter them away like that. Having said that, make you always have adequate coverage. And that means having enough coverage to ensure you do NOT have avoidable regrets.
