Have Good Car Insurance? How To Make It Better

Having good car insurance is one of the most effective ways to protect yourself from the potential liability of a serious automobile accident - where you are at fault. Moreover, if you can afford the insurance premiums, then extended coverage comprehensive collision automobile policies, otherwise referred to as full coverage car insurance policies, can provide you with even additional liability protection. Fortunately, there are ways to get better car insurance coverage:

Step One - Review Your Present Car Insurance Policy

First, you should sit down and review their current car insurance policy. Identify the areas where you think you may need higher policy limits or better coverage.

Step Two - Extend Your Current Car Insurance Coverage

If you're concerned that you may not have enough car insurance coverage, you can contact your insurance company and requested a quote to extend the policy limits of your present policy. For example, typical bodily injury or hospitalization expense limits, for most standard full coverage insurance policies, are generally within the $50,000-$100,000 range. However, if someone is seriously injured during an accident, these amounts are easily reached, and exceeded, very quickly - by hospitalization bills, doctor’s bills and/or surgery bills.

Therefore, you might consider asking your car insurance company to raise those limits to $250,000 or more. Of course, higher policy limits will result in higher premium rates. However, if your policy limits do not cover the expenses of an injured person, then you may be personally liable for the amount that is not. So, paying higher car insurance premiums now may save you from a huge financial burden in the future.

Likewise, you can raise the policy limits in most other areas of your coverage as well. For example: property damage, death and dismemberment and overall personal liability limits can usually all be raised. For every increase in coverage that you make, expect a corresponding premium rate increase.

Step Three – Try an Umbrella Liability Policy

Another way to improve your car insurance, and to protect yourself from liability, is to not to change your car insurance coverage at all - but, rather purchase an “umbrella” liability insurance policy. Umbrella liability insurance policies often offer very high policy limits on personal liability. It is not uncommon for liability policy limits to exceed $1 million on umbrella liability policies. The way an umbrella policy works is fairly simple; the policy insures against most types of personal liability - including a liability caused by an at-fault motor vehicle accident.

If you have homeowners insurance, your insurer may offer an umbrella liability policy to you at very attractive rates. However, regardless if you're a homeowner or not umbrella liability policies are generally much cheaper than very high-end full coverage automobile policies. That is to say, that it will usually be cheaper to get an umbrella liability policy than it will be to raise the limits on your full coverage car insurance. But, you should shop around for the best rates to make sure.
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