Auto Insurance – What You Need to Know

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No matter what kind of vehicle you drive, you need to have auto insurance to protect yourself, others and your investment. However, there’s more to auto insurance than just finding a cheap rate.

Minimum coverage and larger deductibles – what does that mean to you?
When you buy auto insurance, you’ll need to buy at least the minimum coverage required by law or your lender. However, it is wise to review other options with higher limits of liability. You’ll need to determine what is the best option for you.

Deductibles are important as well if you decide to cover damage to the vehicle. Let’s say you get into an accident that requires $2,500 in car repairs. If you have a deductible of $1,000, you’ll have to pay 40% of these repairs out of pocket. On the other hand, if you have a $250 deductible, you’ll only pay 10% of the cost of the repairs.

You’ll need to take some time to weigh the difference between lower monthly premiums and higher out-of-pocket expenses. It really is your choice.

Be sure to ask about discounts available for you and your family.
Here are a few discounts to ask your insurance agent about:

  • Discounts for safety features and alarm systems on your vehicle.
  • Good driving record discounts for you and your family members.
  • Student discounts for children you may have on your policy.
  • Multi-policy discounts (yes, combining your renter’s or homeowner’s insurance policy with your auto loan policy may save money).

Review, review, review.
While you may feel great about an insurance company or policy, you still need to review your policy every year with your agent. You may qualify for new discounts based on your current circumstances. Whatever the case may be, it’s in your best interest to perform an annual review and reconsider your coverage options.

Learn more about auto insurance available through BancorpSouth Insurance Services.