how to choose auto and home insurance

You have options when it comes to your car insurance policy how to choose auto and home insurance. And trying to nail down the right coverage limits can be a bit like trying to pinpoint the number of jellybeans in a jar. We'll help you eliminate some of the guesswork by asking a few crucial questions. Consider the following financial factors before you set your coverage limits. The higher you set your coverage limits and the lower you set your deductibles, the less you'll pay out of pocket after an accident or claim.

" If you're a homeowner with plenty of financial assets, it might be worthwhile to increase your liability coverage limits above the legal minimums. If you cause an accident and your liability limits are too low to cover the expenses, the other party might go after your assets in court. Higher limits can help you protect your assets. can help you protect those things you've worked so hard to attain. There are a few coverage elements to consider if you finance your car.

The limits of these coverages are equal to the value of the car, so the only thing you'll need to decide on is your deductible. Loan/lease gap coverage can also come in handy. If your car is totaled and your insurance settlement is less than what you still owe, you could be stuck paying down a car you can no longer drive. helps bridge that divide between your car's worth and what you still owe. If you have reliable health insurance, you may not want to add to your policy. But in some cases, your health coverage may not pay for accident-related medical expenses.

Check the specifics of your health insurance plan before determining how much medical coverage to add to your policy. Consider your driving record. If you're a cautious driver with hardly a blip on your record, you might opt for a higher deductible and a lower rate. On the flip side, if you're not quite as careful as you could be, you may want to consider higher limits because of the extra protection it provides.

But older cars may benefit less, since post-accident repairs could barely exceed your deductible (meaning you'd be shouldering most of the cost anyway). If you work from home and take your car to the grocery store once a week, you might settle for minimum coverage requirements (and look into a low-mileage discount). But if you commute to work through dense, urban traffic, you may want your policy to account for that through added protection and higher coverage limits. Generally, the more time spent in the car, the more hazards you could face.

So living in a city packed with people could be good reason to up your collision limits. And as of 2013, 7 of the National Insurance Crime Bureau's top 10 hot spots for car theft had populations above 200,000. If you live in one of these hot spots or a major metro area, comprehensive might be worth a second look. Judge your car's vulnerability.

If you have $10 million in your third-favorite checking account, you may be able to afford unforeseen and exorbitant expenses after a car accident. In that case, opting for lower limits just means you're willing to assume more of the risk each time you get behind the wheel. If, like most people, you don't have that kind of emergency fund on standby, paying slightly higher premiums for higher coverage limits can offer a great amount of financial protection in case you're in an accident. No matter how skilled you are behind the wheel (and we don't doubt it), accidents can and do happen. Through auto coverage limits, you can tailor your policy to protect your financial assets and provide you with much-needed peace of mind. Obviously, you can't list every insurance scenario (on anything shorter than an Egyptian scroll) to determine the perfect amount of coverage.


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