If you’re like most people, the economy is affecting your finances. More people are looking for ways to reduce their expenses. Are you interested in making a few changes to your North Carolina auto insurance?
Do you need “Full coverage”?
Before we can determine whether you require “Full Insurance”, let’s define what it is. You are likely to hear a variety of definitions of “Full Coverage” if you ask 10 people. Full Coverage is both Comprehensive and Collision coverage. You can also add Towing & Labor Coverage or Rental Reimbursement to your North Carolina coverage. These coverages can be added to your Comprehensive or Collision Insurance.
First, if your lender is financing a vehicle, they will require you to have “Full coverage”. Those of you who do not have financing will need to make some important decisions. These questions will help you decide if you need auto insurance with collision & comprehensive.
- Model Year – Many people keep Full Coverage on cars that are older than 15 years.
- Current Value – Check out a variety of websites that can tell you the value of your car. If your car’s value is below $5,000, consider your NEED for Full Insurance
- Financial Status – Although it may seem counterintuitive, a person with a lower financial status should consider Full Coverage for a vehicle. You should keep Full Coverage if your car’s replacement cost is higher than you can afford in a short time.
These are the most important questions to ask about your NEED for Full Insurance. Each person is different, so it’s important to talk with an agent who can help you make the right decision. For most auto insurance policies, the “Full coverage” portion is approximately 50% of the total premium.
Increase Your Full Coverage Deductibles
Insurance was originally created for Catastrophic Protection when the Theory of Insurance was established. Insurance is now seen as a way for people to simplify their lives. If you adopt a “Catastrophic Viewpoint” regarding your insurance coverages, you will save money.
Comprehensive Deductible
Your Auto insurance policy’s Comprehensive section is more affordable than Collision. A lot of people have a deductible of $50, $100, or $0. You can save money by increasing your deductible from $0 to $250. You can increase your deductible to $250, but most comprehensive claims will only be $500. You could be exempted from coverage if your deductible is $500 or higher.
Collision Deductible
Here you will find some real savings. It amazes me how many people have Collision Deductibles between $100 and $250. Today’s car means that if there are any accidents that require your collision to kick-in, it is likely that the damage will be more than $500. A $500 emergency fund is also an option.
Where to Cut Coverage
You can save significant money on your North Carolina auto insurance if you are honest about the questions you have asked and adjust your Deductibles. Most people will try to reduce their policies to the minimum. This is a mistake that you should avoid! Do not reduce your liability limits. You should always review your Liability Limits. Most people don’t have enough coverage. You don’t want or can afford an accident that is “at fault” and your liability limits are inadequate.
