What you should know before buying auto insurance

Make sure your car insurance coverage reflects your individual needs and budget.  The following are questions you need to ask and know when shopping for car insurance in Lake Charles, Louisiana.

1. What type of car do you drive?
2. Is your car financed or leased?
3. How much do you drive?
4. Who else drives your car?
5. Where do you live—and park your car?
6. Do you use your car for work?
7. Is vehicle appearance important to you?
8. What are your legal liability insurance obligations?

 
The car or truck you own, your priorities, and your finances factor into your distinctive car insurance needs.  Before evaluating insurers and policies, consider how you use your car and the risks you face to understand the options that make sense for you.
 
1. What type of car do you drive?
Insurers have compiled data on every model of vehicle and know the precise details of which brands, makes, and models are likely to encounter frequent claims.  The powerful sports car is more likely to be stolen and is more expensive to repair than a mid-sized sedan, and your insurance premiums will be levied accordingly.  Certain models of cars, such as modified motorcycles, trucks and classic cars require additional or specialty insurance.  While discounts are offered for newer cars with high safety ratings and features. 
 
2. Is your car financed or leased?
If you have financed or leased your car, the lending and leasing institution usually requires you to carry insurance for the vehicle's full value and may require you to purchase gap insurance.  Gap insurance is specialty insurance that covers the difference between the market value of the vehicle and what you owe on the vehicle.  Comprehensive/Collision insurance will cover up to the market value of damage to your vehicle in the unfortunate event of incident or accident, where specialty (or supplemental) gap insurance covers anything above market value.
 
3. How many miles do you drive?
Do you drive to and from work, pick up children from school and after school activities?  Are your accumulated miles driven 100 miles a month or closer to 500 plus miles a month?  Your insurance policy should reflect how often you drive your vehicle.   If you drive infrequently, you might qualify for a lower cost mileage-based insurance.
 
4. Additional car drivers?
In most cases, your insurance policy covers an occasional driver. However, if someone in your household drives your car more than occasionally, they should be added to your policy.
 
5. Do you use your vehicle for work?
If you are paid to perform duties that require you to drive after arriving at work, chances are you need a commercial vehicle insurance policy.  For example, if your full-time or side business is as an uber driver or pizza delivery, personal insurance does not cover commercial activities.
 
 
6. Is vehicle appearance important to you?
If your chosen vehicle is something you take pride in and appearance is important, you will likely wish to restore it to pre-accident condition.  In this case, full coverage auto insurance that includes comprehensive and collision is the correct choice.   However, if you purchased a cash car and view your vehicle mean-to-an-end you could consider starting a savings account to bank the additional premiums you could save by purchasing liability only.  Keep in mind liability only covers the other vehicle or incident up to policy limits; your vehicle repairs will be out of your pocket. 
 
7. Where does your vehicle reside?
Where you keep your vehicle impacts your insurance premiums and it factors into the coverage you choose.  If your parking space is on an urban street, you face a more considerable risk of vandalism, theft, or accident, and comprehensive collision might be a better choice for you.  Your address and parking play a large role in premiums.
 
8. What is your state legal obligation
Every state has a legal insurance requirement, and the legal policy limit varies from state to state.
To maintain your license and drive a vehicle, you must carry your state's minimum liability insurance.  But, If you choose to carry only your state's minimum liability, you run the risk of litigation for the difference between the accident's value, including medical bills, against your personal assets.

Many Louisiana residents find that carrying a higher level of coverage is worth the minimal difference in premiums to protect their personal assets.  Once you have answered the questions above, you should better understand your car insurance requirements; then, all you need is an agent's assistance to find the coverage you need at the best price. Are you looking for car insurance in Lake Charles, Louisiana?  Call the team at Kelly Lee Insurance; their firm represents over insurance carriers across the United States. 

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