Over the last decade, car insurance has become commoditized for the consumer by the major auto insurers. Instead of providing valuable information on how to minimize your financial risk that results from an accident, insurers have inundated us with clever Television commercials showing the quickest way to buy the cheapest insurance. It’s almost as if the advertisements encourage the consumer to buy fast and cheap no matter the consequence in the long term. Instead of offering coverage information, they offer bottom-line pricing which can leave Cedar Hill residents paying too much for car insurance.
The personal auto policy is a package deal that includes first-party and third- party coverage. First-party coverage protects you and your vehicle while third-party coverage protects other people and their property. Typically, all insurers offer coverages that are considered redundant because they provide coverage for what another part of the policy will pay benefits for:
- Uninsured Motorist Property Damage – This coverage, although valuable, is actually redundant to your Comprehensive and Collision coverage. If your car is damaged by an uninsured or underinsured person, this coverage will pay to repair or replace your vehicle just as your comprehensive or collision coverage would. Why pay for the additional coverage when it is unlikely you will ever use it?
- Uninsured Motorist Bodily Injury – Very often, Cedar Hill residents will purchase this coverage to protect themselves if they are injured in an accident caused by an uninsured or underinsured driver. Certainly, in many cases, this coverage would seem to be beneficial to the consumer, but most Cedar Hill residents already carry comprehensive health insurance (mandated by the ACA) or Medicare, which will also pay for injuries sustained in a car accident; no matter who is at fault. Why have both?
Generally, all auto insurers offer add-on coverages for their customers. This is coverage that is not required by Texas’ Department of Insurance and may or may not be beneficial to the consumer:
- Rental Reimbursement – Most insureds do not realize that this coverage is only available for rental expenses if the insured is in an at-fault accident. Depending on the insurer you select, it can be expensive. The typical additional premium for a $30 per day limit will cost an additional $60 per year per car on the policy. Why would a policyholder pay the additional premium for rental reimbursement when they own multiple vehicles and have never been in an at-fault accident?
- Roadside Assistance – Believe it or not, many consumers purchase roadside assistance coverage when they already have a membership in an auto club. Although the premium for roadside assistance is minimal, San Jose drivers need not buy two forms of coverage that will pay for the same thing.
Multiple Policy Purchase
One of the most prevalent reasons that Cedar Hill residents pay too much for car insurance is by neglecting to take advantage of the multi-policy discount that almost every insurance company offers. This discount is always significant and not taking advantage of it will leave you paying more for your car, home, or renter’s insurance than you should be paying. If your auto insurer does not offer homeowner’s or renter’s insurance, go somewhere else where they do offer it. In most cases, the multi-policy discount can be as high as 25%; that’s a lot of money to leave on the table.
If you are an automobile owner in Cedar Hill, Texas, you could save yourself a great deal of money over time by learning about the different types of automobile insurance coverage options, and making informed decisions when you make a purchase. Ask your agent or broker questions that can result in saving you money and stop letting the insurance companies decide what is best for you and your family.
Contact us today for all your auto insurance needs.