Car Insurance Tips: Understand Your Coverage

While driving can be a great deal of fun, shopping for car insurance is most assuredly not. Nobody rushes out the door in the morning anxiously awaiting the moment when they can start shopping for the best car insurance policy. Even though shopping for car insurance is not fun, however, it is important, and it is vital for everyone who drives a vehicle to have adequate protection in place.

When it comes to car insurance, many of us simply look for the lowest premium we can fund, but it is important to consider not only price but coverage as well. After all, the whole purpose of car insurance is to ensure that your assets are protected in case of an accident, and the accident scene is not the place to find out that the coverage you purchased is not adequate.

It is important to look carefully at the minimum coverage mandated by law and determine if that minimum coverage is really adequate in the real world. It is important to look around at the value of the vehicles around you and make sure that the liability coverage on the policy will cover the cost of the majority of those vehicles. If your neighborhood is crawling with Rolls Royces and Jaguars, you may want to consider upping that liability coverage to a more realistic level.

It is also important to determine exactly what is and is not covered by that insurance policy. Many drivers do not look at the exclusions and limitations of their policy until after an accident has taken place, but the time to do so is at the beginning. It is important to carefully read the fine print in order to determine exactly what is and is not covered.

For instance, travelers will want to determine whether or not the policy covers damage done to rental cars. Many policies automatically extend coverage to any car the insured person drives, whether that car is owned by another individual or a rental car fleet. This knowledge can help the traveler save a bundle by declining the coverage offered by the rental car company.

Drivers will also want to make sure that their policy covers other licensed drivers who may drive their car from time to time. If there is any question on this subject it is important to clear it up before anyone else is allowed to drive the car. And of course no policy will cover damage done by an unlicensed or uninsured driver.

Those drivers who plan to use their car for business will also want to make sure that the car insurance company is aware of that use. Some insurers will charge extra if the vehicle is used for delivery or other business purposes, while others may provide no coverage for business use at all. It is important to read the fine print and ask the agent if necessary.

When it comes to insurance the exclusions can make all the difference. It is vital for every insurance shopper to focus not just on what is covered but what may not be covered as well. Knowing which actions are not covered by insurance will help drivers and car owners tailor their activities to provide the most protection at the least possible cost.

By: Daniel Bell

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