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Auto insurance protects you against financial loss if you have an accident.

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A standard policy insures the home itself and the things you keep in it.

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Typical homeowners policies exclude flood damage. Get coverage now.

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Earthquake claims are best covered with a standalone policy.

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Here are some great questions to ask when buying auto insurance written by Kate Forgach.  As an independent agent, we are here to answer these questions and guide you to find the best insurance plan for your personal situation. 

There ought to be required reading in school to prepare us for buying auto insurance. We need training for reading insanely confusing policy details, imagining worst-case scenarios for ourselves and our loved ones, and weighing the cost of this future doom against a monthly premium payment.

Instead, we find ourselves shopping for insurance with no idea of what we're about to do. No wonder people hate it. No wonder people throw up their hands in frustration and just shell out as much as cash they can afford, and never review the policy again. In what other arena do we seriously consider our own destruction and possible death?

So here's a guide to help you decide if you still need full-coverage auto insurance, along with a tips on reviewing your current policy. This is not pass/fail. Don't let fear overwhelm your better judgment. In real life, the penalty for ignorance hits you in the wallet. Insurance is a product. You can shop frugally for it just like anything else. 1. Do you drive a car?

You must have minimum insurance coverage as required by your state. Full coverage auto insurance generally refers to a policy that includes comprehensive and collision insurance, in addition to the state minimum.

2. Have you paid off your car loan?

You should know up front that, unless you have paid off your car loan, you won't be able to drop full coverage. You may play with the deductible to make this more affordable, but you do need full coverage until you've paid off your car loan

3. Do you already have auto insurance?

After the purchase price, auto insurance can be the most expensive aspect of owning your car.. Adjusting your policy can lead to substantial savings and more affordable auto insurance. It's absolutely worth reviewing your policy and comparison shopping every year.

4. What is your car worth to you?

Comprehensive insurance covers you if your car is stolen and not recovered, or damaged by anything other than a car accident (e.g. fire, flood or act of God). This will pay for your car to be fixed or replaced for the amount your insurance determines to be the car's actual cash value, minus your deductible. For a general estimate of your car's worth, consult the Kelley Blue Book.

5. What is your car worth to the insurance company?

Get out your calculator and do the math on the last question. Look up your car's value in the Kelley Blue Book. Subtract your deductible. Don't forget to also subtract the amount of your car loan. This is what you will receive if your car is totaled.

6. What is your car worth to someone else?

Before you decide to write off comprehensive coverage based on the results of your math, consider the 10 most commonly stolen cars in the United States are more than a decade old. So even if you drive an older car and can't replace the car yourself, you might want to keep your comprehensive insurance.

7. Are you a careful driver?

Collision coverage pays for repair or replacement (minus your deductible) in the case of a crash. Some people think, "I drive like granny and will never crash, so why bother?" The idea is to pocket the money you'd otherwise send to insurance. However, when you are hit by the teenager who mistakes the gas for the break, you may reconsider the wisdom of this. Are you really driving a junker?

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Let Cliff Cottam Insurance help you with all your insurance needs.  Simply contact us at (800) 807- 6871 for a free consultation today!
Posted 1:28 PM

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