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How y’all doing? Hope everyone had a good September and started this month on the right foot. We start getting some of that cold weather up here. I’m not looking forward to winter but I don’t mind the fall season. Especially when your car decides to break down in the coldest season ever. No matter how much attention you’ve given it during the summer.
When it comes to cars breaking down in the winter, my car broke down on the highway three years ago in the first months of the year while driving my daughter to dance practice. I don’t mind being stranded alone, but having your child in a car that won’t start because the water pump decided to fail at the worst possible time can be stressful. Not that there is such a thing as a good time, but you get the point.
Here’s the error message on my car dashboard:
As a result, I contacted my auto insurance company to see if they could have my car towed to the nearest shop or to my home, depending on the situation. I was surprised to learn that they could send assistance to ensure our safety, but getting my car to a different location will be my responsibility because I was not covered under my policy.
Table of Contents
Understand The Three Fundamental Types Of Auto Insurance
When shopping for auto insurance, make sure you get a little bit of everything that will work for you (pun intended). Choosing the cheapest policy, liability insurance with no extras, isn’t always the best option. Let’s start with an overview of the various types of auto insurance coverage.
Auto Liability Coverage If you are found to be at fault in an accident, auto liability insurance helps cover the costs of the other driver’s property and bodily injuries. If you have liability insurance, your insurer will cover the costs of the driver’s damaged vehicle, excluding your deductible and up to your covered limit.
Medical Coverage If you are injured in a car accident, this insurance will pay your medical and hospital bills up to a specific dollar amount. It also covers any passengers in your vehicle’s medical and hospital bills. If you live in a no-fault state, you must generally purchase a certain amount of medical payments coverage. You are not required if you live in a “fault” state, but you may want to anyway.
Collision And Comprehensive Collision insurance covers damage to your car caused by collisions with objects such as trees, garage doors, or a hit-and-run in a mall parking lot. Comprehensive insurance covers anything that isn’t related to a collision and out of your control such as weather, fire, theft, vandalism and impact with an animal. These types of coverage are optional and available as add-ons unless you took out a loan to buy your new car, in which case it is required.
Three Additional Coverage Add-Ons I Recommend
We can all claim to be safe drivers, so we don’t need full coverage or add-ons to our policies because we don’t think anything bad will happen to us. What if your car simply breaks down and it has nothing to do with an accident?
Roadside Assistance is a must. Whether you have children or not, save yourself the trouble and the mental pain.
That was my situation, stranded for only $8 per year because I was trying to save a few dollars.
Tyre Damage is another thing you’ll have to worry about if you’re always driving on rough surfaces. This is a popular choice among construction workers.
Key Loss If you or any other policyholder has a habit of misplacing their car keys, you may be covered. We all know someone who can’t seem to put their keys in the key holder, or who has no idea where they put their keys when they’re out and about. The cost of replacing the key will be covered under this policy.
Other Add-Ons You Might Want to Consider
Personal Laptop and Mobile add-on entitles you to adequate compensation of a stolen personal laptop and mobile phone left in the vehicle.
Replacing Your Totaled Vehicle If the unthinkable occurs, your vehicle is totaled in an accident. This coverage is not without limitations. Many insurers will only replace your car if it is less than two years old; otherwise, they will only send you a check for the depreciation value.
Employee Parking Guard is self-explanatory. While you’re at work, your car is damaged. This add-on will provide coverage for the repair.
Rental Car Reimbursement is an excellent addition If you use your car to commute to work or run errands on a regular basis.
Raising Your Deductible Will Lower Your Premium
When you don’t know how much car insurance you need, it can be confusing. Paying less in the beginning may end up costing you more in the long run. I’ll recommend two things: increase your Comprehensive and Collision deductibles to at least $1000.
Why?
Take a look at how the premium rises when I select the insurer, Liberty Mutual’s, cheapest coverage for my BMW
With $50 coverage, the annual premium rises to $177.
With $1000 coverage, I saved $60 (33.9 percent), lowering the premium to $117.
Oh, yes! If you’re wondering why I don’t have Collision and Comprehensive coverage on my BMW, it’s because I’ve been WFH for the most part and rarely drive it.
Obtain Quotes From Different Insurance Companies
If you’re looking to save money on your insurance package, don’t waste any time and check out Gabi platform. The best part is it’s FREE. All I had to do was log into Gabi’s portal and link my existing policy. You can also unload your policy if you don’t feel comfortable, then let them look over my existing car insurance policy for the same coverage at a lower rate. They’ll send you an email in less than an hour letting you know whether you can save even more money by comparing the final quote to the original quote, which will be different because your driving history and other information were not factored, or if your current policy is still the best deal.
I was able to save $862 for the same coverage plus some additional perks.
There are some major providers such as Liberty Mutual, State Farm and Geico that they cannot process right away and must wait a maximum of 48 hours. The process is usually automated, and most assessments take only a few minutes.
At The End Of The Day
The complete basic insurance policy is only useful if you live in an area where public transportation is not an issue and you drive less than 7,000 miles per year.
Otherwise, don’t forget about the optional auto insurance coverage. They are reasonably priced and well worth the investment. I strongly advise you to review the insurer’s list of add-ons. Take a look at what fits your needs and keep an eye out for the unexpected possibilities before you decide not to add it to your policy.
**Disclosure: I’m not a licensed insurance consultant nor an agent. Please consult a trusted licensed professional for your specific needs.
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