With everyone trying to save a penny here and a penny there these days, many people are questioning their levels of car insurance ("assurance auto" or "assurance voiture" for our French speaking friends) and wondering if they really need as much as they have. You should ultimately discuss this with your agent, but in the mean time, here is some information you may want to use to evaluate your needed coverage.
While there is no set answer for any policy, there are things you can examine to see if your coverage is adequate or over abundant. Your final answer is going to be determined by several factors. We can look at these items here to give you information about what your policy is all about. You may decide to add or subtract coverage according to what will meet you needs. And when you speak with your agent for more in depth advice, doing your homework here will make it easier for you to have a conversation with him or her about your needs.
If an accident occurred what would you want your liability coverage to be? Most would want their policy to pay for all of the expenses. Let's face it, in the case that you are very rich, and could cover all damages yourself, you probably are not going to worry too much about pinching pennies on your car insurance bill. But for extensive coverage, you need to choose a higher liability level. It's a give and take situation, and one that is completely up to you.
Another thing to look at is how high you want your deductibles to be. If you are willing to pay higher deductibles, your premiums will be lower. And vice versa. Choosing to pay low deductibles at the time of an accident means your insurance payments will be more. It's a matter of personal taste. You may choose to take the lower premium rates and be willing to pay more if an accident does occur. And it is possible to vary your deductibles according to what coverage you are looking at. You may want to have lower ones on glass coverage and higher ones on collision.
Collision and comprehensive are terms that denote two different types of coverage in your policy. We can look at these to see if they are something you should be including.
Some options or additions to your basic policy may or may not be required. One of those is collision coverage. This takes care of any damages incurred when you car hits another car or object. When financing your vehicle it may be required by your bank until the car is completely paid off.
Comprehensive insurance is something you can add to your policy if you wish. It will pay for damages that occur when your car is stolen or damaged from a situation such as a flood or a fire. Most banks do not require this but you may feel better for having it. Again, this is something that may be added, or eliminate it when do not feel it is important to you.
As you can see the level of car insurance you need is a highly personal decision. It cannot be made by anyone else but you. Your agent can advise you but in the end, your needs are the deciding factors. Make these choices confidently with this added information.
