Insurance is a critical part of car ownership. Finding the right policy is necessary to protect your investment without blowing your budget. There are several things to keep in mind when you are shopping for car insurance, including any requirements set by your state and loan company as well as what you can afford to spend on a plan. Here is what you need to know about picking the right policy for your needs.
Check Your State Laws
Many states have laws regarding the minimum level of auto insurance you must have. Typically, these laws require you to have insurance that covers damage and injuries to other drivers in accidents caused by you. If your state has a minimum car insurance law, failing to purchase at least that level of coverage could lead to your license being suspended and other penalties. Make sure any plan you choose meets your state’s basic requirements.
Look into Your Loan
In some cases, your car loan may specify the level of insurance you need to have. This is especially true if you lease a car and need gap insurance. Failing to meet your loan’s requirements for insurance could leave you in violation of the agreement, which could jeopardize your financing. Although your loan may have a requirement minimum coverage level, don’t use their rules as a guideline for choosing a policy. You may benefit from having better insurance coverage than your loan company requires.
Balance Premiums and Deductibles
People often opt for the lowest premium payment possible when buying car insurance, but a low premium comes with the risk of a high deductible. Consider both the premium and the deductible when selecting an insurance policy. If your deductible is higher than you would be able to pay in the case of a claim, then you might be better served by choosing a policy with a higher premium but lower deductible.
Choosing a policy can be confusing, but Debbie Aragon’s State Farm Agency is here to help you navigate the process and get the right car insurance for your needs. For State Farm Insurance from Debbie Aragon Insurance in Steamboat Springs, CO, call (970) 879-1756.