If your vehicle is your pride and joy, you most likely take great care of the exterior and interior. But despite your best efforts, damage can occur. But even if you’re not obsessed with your car’s appearance, chances are you still depend on it, and it has a value that you should protect.
Find out how to get the best exterior and interior damage car insurance to protect your investment in your vehicle and how to get it affordably.
For those in need of additional storage for their vehicles, consider the convenient options provided by storage units Scarborough. These spaces offer a temporary solution for safely storing your vehicles, ensuring they remain secure and well-maintained until needed.
Basic Types of Insurance to Protect Your Car
To understand what kind of insurance you need to protect your financial investment in your car, you need to understand the basics.
Liability Insurance Covers Other Parties
Liability insurance won’t provide financial compensation for damage to your car. But that doesn’t mean it’s unnecessary. In fact, it’s the most critical type of coverage to have.
Nearly every state requires drivers to carry liability insurance. Three numbers show the minimum limits mandated. So, for example, you might see something like 25/50/15.
- The first number represents how much coverage is for one person’s injuries.
- The second number represents the total coverage limits for multiple injured individuals.
- The third number is the property damage coverage limit.
Besides being illegal to drive without insurance, forgoing car insurance is an unwise financial move. Without insurance, you’ll be liable for damage you cause in an accident, and you’ll have to pay for it out-of-pocket.
Comprehensive Insurance Covers Your Vehicle From Non-Crash Damage
Comprehensive car insurance covers your vehicle from damage that is not from an accident. So, it will protect against your financial losses following weather damage like hail or flooding, vandalism, and theft. Also, it protects against damage from hitting an animal like a deer.
Comprehensive insurance even covers damage from rodents damaging your wiring or chewing your upholstery. So, if you have rodent damage in your car, keep the rodents away and file a claim. Comprehensive insurance is known as first-party coverage, so it’s for the policyholder’s vehicle and offers protection up to the vehicle’s value.
With first-party coverage, you’ll need to choose a deductible. Some insurance companies offer policies with no deductible, but you’ll pay more for those policies because the insurance company has to carry all the financial risk for your vehicle.
Most of the time, people choose a deductible between $250 and $1,000. Comprehensive insurance is one of the least expensive types of coverage, so some people prefer a lower deductible than they choose for collision coverage.
Collision Coverage Pays for Damage to Your Vehicle Following a Crash
If another party causes an accident, they will most likely be liable for the cost of the damage they do to your vehicle. However, if you cause a car crash, you’ll need collision coverage to get insurance help to fix or replace your car. As with comprehensive coverage, you must choose a collision insurance deductible.
Most people who choose first-party coverage decide to get both comprehensive and collision coverage. The combination of these two is usually referred to as full coverage.
If your vehicle is less than 10 years old and the annual premiums for full coverage are less than 10% of your vehicle’s value, you should carry full coverage. If you don’t meet those parameters, you will need to weigh the cost of the coverage with the risk of paying for vehicle damage or loss out-of-pocket to decide if you want full coverage.
Additional Coverage for Special Circumstances
There are several reasons people need and choose to carry additional insurance coverage besides the basics.
Insurance for Modified Vehicles
Some people choose to modify their vehicles. Sometimes these updates are strictly for looks, and other times they’re for accessibility. Regardless of your reasons for upgrading your vehicle, those changes likely increased the value of your car and would cost more to repair or replace than manufacturers’ parts.
Standard full coverage should cover the cost to get your car back to factory specifications. If you need your policy to cover more than that, you’ll need to get special coverage.
If your modifications cost $1,000 or less, your insurer may cover them without changing your policy. However, if your modifications are more expensive, your insurer probably won’t cover them.
Insurance for Specialty Vehicles
If you have an antique or classic car, you might need a specialty insurance policy for the special needs of that kind of vehicle. While most vehicles depreciate over time, classics and antiques often increase in value. Their parts can be challenging to find and expensive to purchase. Specialty insurers understand these needs and have a variety of insurance policies available.
Personal Effects Coverage for Your Belongings
Personal effects coverage is not a standard insurance policy. Since car insurance doesn’t cover your belongings that are damaged in a crash, personal effects coverage helps bridge a coverage gap.
Home insurance will cover loss of or damage to your belongings, but most home insurance policies have a high deductible that prevents most people from making a claim for items damaged in their car. However, you can choose a lower deductible for personal effects coverage, so it makes more sense to file a claim if you damage your belongings in a crash.
So, whether you have all the nomad gear you could ever need or just a few electronics you travel with, you should consider personal effects coverage.
Car Insurance Costs and How to Save
The average cost for full coverage is around $125, but it varies depending on where you live, your driving history, your provider, and many other factors. But no matter what you’re paying in premiums, there are probably things you can do to spend less.
Compare Car Insurance Quotes
Even though most insurance companies use the same factors to calculate your premiums, they all use slightly different formulas. As people grow old and their life circumstances change, the insurer who was best for you five years ago may not be the best.
When you compare quotes, you can make sure you’re with the best car insurance provider or switch to one that offers you a more competitive rate.
Look for Discounts to Save Money on Car Insurance
Car insurance discounts could add up to 35% or more savings. If you haven’t reviewed the available discounts for a while, it may be time to call your insurance provider and ensure you’re getting all the savings you’re eligible for.
You have many options for the type of coverage you can purchase to give yourself the best coverage for your vehicle, both inside and out. And with a bit of comparison and research, you can get the best price for that coverage.
Melanie Musson writes and researches for the auto insurance comparison site, AutoInsurance.org. She’s passionate about helping others find the best auto insurance for a fair rate to protect their financial stability both now and in the future.