People seldom like to consider worst-case scenarios. As you might imagine, this is especially problematic when it comes to choosing an insurance plan. While people are usually focused on trying to keep their premiums low, it doesn’t always need to be expensive to get more from your insurer. Paying a bit more monthly for the extra protection could be what saves you down the road.
Upgrade your write-off payout to an agreed value
Many drivers with substandard insurance opt by default for a market value settlement in the case of their vehicle getting totalled. Essentially, if there’s an accident, the insurer will estimate how much the car would have been worth on the resale market directly prior to the incident and pay the claimant off as such.
The problem with this is that the apparent “market value” tends to be much lower than it would cost to buy a replacement. By upgrading to agreed value coverage, you have more say in how much you’ll be compensated in the event of an accident. The premiums will go up proportionately with how much extra you would want paid your way. If you depend on a vehicle for your livelihood, ensuring that you’ll have enough money to buy a replacement will keep an accident from costing you even more.
Roadside assistance will keep a bad day from being a lot worse
In the end, whether your car is new or old, there is always a chance for something bad to go wrong while you’re out on the road. A blown tire or malfunction can bring a car to a winding halt. While this is never going to be pleasant, you can save yourself a vast amount of stress with a roadside assistance add-on.
Without that coverage, pickup trucks and the like will be available, but you can expect to be charged hundreds for dollars for might only be a few minutes’ worth of assistance. At only a few dollars extra per month, you’ll thank yourself when you really need it.
Upgrading your liability coverage can multiply your protection at a relatively low cost
In the event that you hurt someone else or damage property while driving, liability coverage is there to protect you financially, paying off whatever bills are sent your way. Again, because people like to underrate the possibility of something bad happening, they underestimate just how much an accident could cost them.
For instance, if a low-rung insurance plan offers $25,000 in protection, anything a claimant is charged above that will come directly out of pocket. By contrast, paying a few extra dollars a month will effectively multiply your liability coverage, helping to ensure you’ll have the money you need to pay a settlement.
A rate lock is insurance for your insurance
For an additional charge, a rate lock will essentially protect you from hikes in your premiums for a set number of years. Any insurance discounts allotted by good driving will be rescinded in the case of an accident, but you won’t be subject to other prices changes for so long as the rate lock is in effect. In this regard, it is kind of like having an insurance guarantee on your insurance policy.
Increasing your credit score will have a positive effect on your insurance rates
While it can seem unfair, your credit score will factor into an insurer’s appraisal of you. Your credit-based insurance score is factored in as part of your risk assessment. Essentially, insurance companies will reward customers who are proven to be dependable. Improving your credit score can be done by paying outstanding bills and being as up-to-date as possible with your payments.
If you have managed to significantly improve your score in the time since filling out a policy, you may want to review the new score with your insurance representative. You may be able to cut a sharper deal on the premiums you’re paying.