Cheap Auto Insurance: Should You Trade Down Your Ride?

Usually, the Opting for Cheap Insurance ?type of car you drive is one of the last things to cross your mind when you shop for auto insurance. But what you drive often plays a huge part in the price you’re quoted when you run your details through a vehicle insurance comparison tool. Why? Because some cars are far more costly to insure than others.

All of this begs the question: is it economically sound to own a car that costs a small fortune to insure? The answer to that question depends entirely on you and your financial situation. To help you decide, here are a few questions to ask yourself when you shop for auto insurance:

• Is what I drive important enough for me to have to pay higher insurance premiums for it?
• How important is it to me to save money on auto insurance?
• Will cutting down on my monthly insurance premiums help out my overall financial health?

Depending on what your answer is to any of the questions above, you might arrive at the conclusion that trading down for a vehicle that’s much cheaper to insure is the smartest thing to do. However, if you’re in a position to be able to pay significantly higher premiums with minimal pain to your pocket, there’s no reason to sacrifice your dream car. Regardless of which route you take, be sure to use a vehicle insurance comparison tool to ensure you never pay more than you should for car insurance.

How to Understand Texas Insurance

Understand Texas Insurance You want to understand just exactly what your Texas home and auto insurance covers, but you also know that the policies will be written in fairly technical and legal language. What you can do is take the brief description page you were given for each policy and use it as a guide to find the most important parts of the policy.

Which parts are most important will depend on which insurance policy you are examining. If it’s your home insurance, you want to look for the following:

 

  • Exactly what is covered. Does your homeowners policy include unattached buildings or structures such as garages, barns, tool sheds, or similar structures? Some do; some don’t, and knowing this will help you determine if you need to consider getting a “rider” (additional coverage) for those things.
  • The coverage amounts. Again, this varies from policy to policy, but generally you are covered for the replacement value of your home should it be completely destroyed, as well as certain amounts for damage repairs or replacements.
  • If medical coverage is included, and the amounts of that. For some Texas residents, choosing medical coverage on home insurance policies is an option.
  • The amount of your deductible.

If you are examining your auto insurance policy, you want to examine these parts:

 

  • Liability: the amounts that will be paid for repairs to other vehicles involved, and the deductible amount.
  • Comprehensive and Collision: the amounts that will be paid for repairs on your vehicle. Comprehensive can also cover damage to your car that occurred for reasons other than an accident.