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These days people take out more and more insurance. They insure their homes and cars. They insure personal possessions and take out warranties on new appliances and products. It’s fascinating how similar insurance is to gambling: everyone pays into a pot, but only certain people receive the money. The amount paid in depends on the likelihood of you having to take it out.
As with so many things today, we get what we pay for. When it comes to insurance, the temptation may be to pay the bare minimum and hope we never need to make a claim. None of us can see the future, however. Our budget may also influence the decision. We will now look at the potential benefits of paying more for our car insurance.
Protection If The Other Party Is Underinsured
It’s bad enough being involved in a crash without having money worries as a result. Think of the potential loss of earnings if you were unable to work, and the medical or car repair costs. Some people take out underinsured motorist coverage in case the other party was not fully insured. If the other party was underinsured, they may be unable to cover the full damages to your car, or the injuries to your person. Uninsured motorist attorneys also work on peoples’ behalf by dealing with the insurance companies to seek full compensation.
Breakdown Cover May Be Needed
If a vehicle is involved in a collision it may be undriveable. When people take out car insurance they may have the option to choose built-in breakdown cover. Other people may get this separately from a third party company. It can be a case of shopping around and choosing the best deal.
A breakdown cover usually involves cars being either repaired by the roadside or taken to a garage. Some cover includes a visit to a person’s home if the engine won’t start. People may opt to be taken to their destination if the car is out of action, or to be given a courtesy car. Some policies even provide overnight accommodation if this is needed. If someone has a crash but does not have breakdown cover, they may have to pay a car garage to take the car away. This may be more costly than if they had taken out breakdown cover with their car insurance. They may now have no way to get to their destination, and no transport until the car is fixed.
Legal Coverage May Be Valuable
Some car insurance policies give the option for legal assistance to be included. This may apply if there was a dispute over the incident and legal fees would be required while the case is resolved. When this is included in the policy, it may be cheaper than them having to choose a lawyer elsewhere. The process of receiving legal help is much smoother if it’s all included in the policy. The points of contact will be all with the same insurance company.
There May Be Personal Injury Payouts
Once again this would be an optional extra. Some policies say that if permanent injury (eg loss of limbs) occurred through a vehicle accident, a financial payout would be made under the car insurance. This would be up to a predetermined maximum figure. This option provides another layer of peace of mind. If a person was rendered unable to work following an accident, there would be a reduction in their money worries.
Lower Excess Levels May Pay Off
Car insurance usually involves compulsory and voluntary excess levels. If there is a $50 compulsory excess on a policy, this will always have to be paid by the insured in the event of a claim. This means if an insurance claim totaled $300 the insured would receive $250.
If someone opts for a higher excess level, their insurance premium will be smaller. This is because they will have to pay more in the event of a claim. Anyone who selects a lower excess level will have to pay a higher insurance premium. As we have said, insurance is like gambling. If a claim did occur, the person would have to pay less excess.
Sometimes an insurance company will deem that the crash was not your fault, and decide to waive the excess. It is clearly wise to shop around for the best insurance deal. Assess your response to risk, and don’t cut corners if additional benefits may be advisable.
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