In the current economy, many people are looking for ways to temporarily lower insurance costs. When you have to make a choice between making the house or car payment and paying for insurance, you may have a difficult decision. Instead of letting your coverage lapse, look for ways to lower the cost and still retain insurance protection.
First, the easiest way to reduce your insurance cost is to raise your deductible. When you first purchased your protection, you may have asked for low deductibles to reduce the out-of-pocket expense when you are involved in an accident or a disaster strikes. By raising the deductible, your premium will be cheaper while you retain the same amount of coverage.
Another way to lower the cost is to combine policies with the same company. When you bundle your protection with the same insurance provider, they will probably offer a multiple policy discount. If you already have homeowners insurance, auto insurance and life insurance, save money by combining these policies.
A third way to temporarily lower the cost of insurance is to shop around for a new provider. Even if you have been with the same company for a long time, you may be able to find a cheaper rate. Insurance companies are in competition with each other and they may offer different incentives. Take a few minutes to compare quotes and you may be surprised by how much money you can save.
Finally, make sure you make your payments on time. This will not only save you money on late fees, but having good credit will also get you lower insurance premiums. Don’t cancel your insurance all together; just find a way to lower the cost until you are financially stable once again.
Property damage coverage is a requirement in the United States. All drivers must have at least $5,000 worth of property damage coverage per accident, if not significantly more. This type of coverage provides protection for repair expenses to damage done to another person’s property, but not to your own. Most states actually require significantly more than the federal level of required coverage.
Why You Need More
It is important to know that this type of protection is often necessary at a higher rate beyond these state and federal requirements. It benefits you to have more protection. If the vehicle or other property damaged is at a significantly higher value than the amount of insurance protection you have, you, as the driver, are financially responsible for covering the remaining difference. More so, this could leave you in a poor financial situation if you do not have the funds to cover a large accident.
How to Buy It
To buy property damage coverage, consider what your needs are specifically. The amount of coverage you get depends on your state’s requirements and your desired level of protection. To reduce costs, consider the following:
- Packages that bundle property damage insurance with liability coverage may save you money compared to buying them separately.
- Ask your agent for recommendations on how much to purchase based on previous claims for vehicles like your own.
- Know that this insurance does not cover your vehicle in any way. It covers the other person’s property. This means that having comprehensive coverage, or another form of insurance, is a good idea if you want to protect your investment.
Do take the time to compare your options. The costs of property damage insurance range significantly from one company to the next. However, when comparing policies, make sure to compare the same type of policies to each other. Look at the difference in coverage options, discounts, and deductibles you may need to pay.
Ultimately, you need to have property damage coverage if you are a driver or a vehicle owner. Not doing so could put your financial future on the line and even jeopardize your driving privileges. To avoid this, purchase a policy that provides adequate coverage for potential accidents and damage to property. Whether it is another car or someone’s other property, the costs can rise sharply beyond a basic policy or state-limit policy. Look for the policy right for you instead.