In most places, you need proof of adequate insurance before you can drive any type of road vehicle. Besides being required by law, having auto insurance protects you financially in the event of a wreck or collision while you’re behind the wheel. It can also be useful if your vehicle is damaged or stolen while parked.
If you cause damage to another person’s vehicle or property, or if you injure someone else while driving, your auto insurance can help pay for part of the resulting responsibility fees. There are risks associated with driving, but with the correct auto insurance, you can be protected from them. Considering that estimates for auto insurance run between $700 and $2,000, the fines for not having one are astronomical.
Additionally, driving without auto insurance can result in serious repercussions, even for first-time offenders. Take, for instance, the penalty for driving without auto insurance in Barrie, which can be anywhere between $5,000 and $25,000.
So, what happens if your current vehicle insurance policy isn’t the correct one for you? Here’s what’s at stake.
Accountability for Costs Beyond Your Insurance’s Policy Limits
Finding the cheapest auto insurance policy possible is a goal of a lot of customers. You have the bare minimum of coverage required to legally drive on public roads, and you’re saving money in the process. Surely you’re making a financial gain. Really, what’s the worst that might happen?
Lack of Adequate Protection
If the price is your sole consideration while shopping for car insurance, you might be making a major mistake. This is because plans that cost less won’t provide enough protection in the event of an accident. If you don’t have enough coverage and get into an accident for which your insurance won’t pay in full, you might end up paying thousands of dollars out of pocket.
Having just collision coverage is another common error that can lead to expensive bills. Collision insurance protects you in the event of a collision with another vehicle or stationary object. However, it won’t pay for anything that happens to your vehicle while it’s parked. If anything were to fall on your parked vehicle, for instance, you would not be compensated by collision insurance. That’s why it’s crucial to have full coverage.
Many individuals grossly underestimate the appropriate level of liability protection they should have. Drivers typically choose the least level of coverage required by law to keep premiums down. What would you do if you were held accountable for hundreds of thousands of dollars, but your provider only offered to compensate you for $60,000?
Insurance coverage minimums vary by jurisdiction. You should carefully examine the level of responsibility you want to prevent any unpleasant surprises down the line.
How to Reduce Insurance Costs Without Skimping on Coverage
Fear of paying too much for insurance is the primary driver of both underinsurance and improper coverage. However, there are several options for cutting costs on insurance without skimping on coverage.
Choose a Higher Deductible
In certain cases, you might be able to reduce your premiums by choosing a higher deductible. The trade-off is that you’ll have to pay this much out of pocket in the event of an accident before your insurance company begins paying for anything else. Pick a deductible that you’re able to afford.
Look at Possible Discounts
Depending on your situation, you could be eligible for a lower premium because of your car’s safety features, your driving record, your mileage, the number of vehicles you cover, your claim history (no claims or few claims), your membership in a certain organization, or any number of other factors.
Finding affordable vehicle insurance that meets your needs might seem like an uphill battle. However, working with a professional can make this subject much less complicated. If you want to be sure you’re receiving exactly what you need, a broker can provide you with the advice you need.
Consult an insurance broker to shop around for coverage and access options that can be hard to come by otherwise. They can work with you one-on-one to find an option that works best for your unique requirement and budget.
In addition, you have someone to turn to in case you have any concerns or questions regarding your coverage. Additionally, having a professional by your side, they can make sure you’re complying with any and all local laws that apply to you. This way, you’ll have peace of mind and stay out of legal trouble.
From time to time, it’s a good idea to go through your policy again and double-check that you have the right coverage. If you’re unsure about anything, don’t hesitate to ask your broker or insurance provider. Remember, being aware of what you have and what you need can save you money in the long run.