Choosing Better Insurance Coverage

Few things are more important than having the right insurance coverage. About ten years ago, I was involved in a near-fatal crash where I experienced traumatic physical and emotional injuries. It was really challenging for me to endure the hospital stay and subsequent physical rehabilitation, but with the help of my medical team and my insurance company, I was able to overcome the challenge and completely recover. This blog is all about the importance of choosing the right insurance plan so that you can get on with your life and enjoy those precious years with your family and your friends.

When Does It Make Sense To Add A Rider If It Raises Your Premium?

Insurance Blog

If you've been seeking ways to cut your car insurance premiums or find new insurance with low premiums, you need to decide now what sort of protection you really need. It's tempting to go with just the legal minimums, but that could bring you more financial pain should something happen to you while you're on the road. Deciding whether to add riders to your auto insurance involves balancing current and future financial needs, as well as your current living and driving situation.

Your Region

The issues present in your neighborhood, city, route to work, and other regions are big factors. If your city tends to have a lot of uninsured drivers, or many drivers with bare-bones insurance that doesn't cover much, getting an uninsured/underinsured accident rider may be to your benefit. While the rider would add to your insurance premiums, it would help cover you should you have to deal with accident damage caused by someone with inadequate coverage. If you live in an area where everyone has adequate insurance, or an area where you don't have to do much driving, the rider might not be as crucial if you truly need to cut insurance costs.

Post-Problem Costs

Another issue is the cost of fixing whatever problem the insurance rider would have covered. Rental reimbursement, for example, can cover costs of renting a car if yours ends up in the shop after an accident. But if you know of cheap rental agencies, or if you know you can take public transportation to and from work for a couple of weeks if needed, then the rental car rider might not be something you need. On the other hand, if your area doesn't have good transit and you need to drive a lot, the rental car rider could be a good addition because the rise in your premium likely won't be as painful as the cost of renting a car.

Your Car's Age

Some riders depend on the age of your car. If you have a new car, for example, a waiver of depreciation could protect you if you have an accident that totals the car soon after buying it. But this rider would not be useful if you have an old car because depreciation wouldn't be as big of an issue.

Talk to an insurance agent, like those found at Green Light Auto Insurance Specialists, about what each rider does and consider the premium and post-problem costs of each. With the right riders, you can keep your insurance premiums at a reasonable level while still having great coverage.


20 July 2016