A lot of people waste money on premiums for car insurance that they don’t actually need. However, it may be difficult to determine if you are paying for unnecessary car insurance since many insurers are good at adding coverage that is not needed. Unnecessary car insurance usually takes the form of added coverage that doesn’t serve your personal needs.
This coverage can be completely unnecessary or duplicate other policy coverages that are already included in your primary policy. It’s important to be aware of coverage details and not be afraid to ask your insurance agent questions.
A good way to see if you’re paying for unnecessary car insurance is to get quotes from other companies and compare them to the policy you have now. This can usually make it easy to spot unnecessary coverage. However, the most common types of unnecessary car insurance coverage include a short list that should be considered when you obtain a policy in the first place or replace an existing policy, including rental car insurance options, collision coverage and personal injury protection.
This coverage can be completely unnecessary or duplicate other policy coverages that are already included in your primary policy. It’s important to be aware of coverage details and not be afraid to ask your insurance agent questions.
A good way to see if you’re paying for unnecessary car insurance is to get quotes from other companies and compare them to the policy you have now. This can usually make it easy to spot unnecessary coverage. However, the most common types of unnecessary car insurance coverage include a short list that should be considered when you obtain a policy in the first place or replace an existing policy, including rental car insurance options, collision coverage and personal injury protection.
- Rental car insurance - If you rarely drive rental cars it will be cheaper to buy rental car insurance coverage directly from the rental car company. Those who regularly rent cars can save money with it.
- Personal Injury Protection - If you have health insurance or qualify for a program such as Medicare or Veterans Administration Healthcare you may not need this because it covers medical costs in case of an accident. If you have regular passengers, Personal Injury Protection can be a good idea because it covers their medical costs.
- Collision Insurance - If you’re driving a new car or a valuable late model vehicle you really may like this coverage because it covers repairs to your vehicle. If you’re driving an old piece of junk, that you could replace for a few thousand dollars collision insurance can be a waste of money.
- Funeral or Accidental Death Insurance - If you have life insurance this coverage is a waste of money because the life insurance policy will cover that cost. A life insurance policy will provide far more coverage for a better price.
- Roadside Assistance - If you belong to the American Auto Association (AAA or the Auto Club) or a similar organization this is a duplication of services. Roadside assistance usually simply pays for towing. AAA will pay for that and some basic roadside mechanical work as well. If you don’t have AAA, it can be a deal but remember cars don’t break down that often these days. You might be better off simply with your credit card to pay for roadside assistance.
These are the most common kinds of unnecessary car insurance but they’re hardly the only ones. Read your policy carefully and if you don’t see some of the coverages question it. Car insurance companies are constantly inventing new kinds of coverage in an attempt to increase premiums. Make sure you are not paying for unnecessary car insurance.
A good way to see if you’re paying for unnecessary car insurance is get quotes from other companies and compare them to the policy you have now. This can make it easy to spot unnecessary coverage.
A good way to see if you’re paying for unnecessary car insurance is get quotes from other companies and compare them to the policy you have now. This can make it easy to spot unnecessary coverage.
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