5 Reasons Why Investing In Good Auto Insurance Always Pays Off

The most recent statistics show that approximately 42,915 people died in car accidents in the United States in 2021. This represents a considerable increase of 10.5 percent when compared with 2020. Furthermore, 4.8 million people suffered serious injuries.

These statistics alone show why it is so important to choose quality car insurance that will cover the costs associated with a crash. Not only do insurance policies cover incidents like this but they can help in situations such as theft or vandalism.

However, with so many different insurance policies to select from, it can often be difficult to know where to begin. A lot of people simply end up going for the cheapest policy they can find, without considering what the policy covers or the representation of the insurance provider.

With that in mind, continue reading to discover the different reasons why investing in a good auto insurance plan always pays off.

Is it better to go for experience or cheap auto insurance?

It is important to realize that cheap auto insurance does not necessarily equate to poor quality insurance. There are some excellent yet cheap commercial auto insurance policies out there.

What you need to do is get into the nitty-gritty of the policy. Find out when you are covered, what the exclusions are, how much excess you need to pay, and the company’s track record for paying out. These are the sorts of factors that are going to influence how good an insurance policy is.

Never let price be your determining factor. Instead, dig deep into the quality of the policy first, and you can then narrow down your final selections based on price. This is the best approach to take.

How much does the average household pay?

Statistics show that the average auto insurance premium is $148 per month or $1,711 per year.

There are a number of different things that can drive the cost of your policy up, though. For example, all of the following could drive your premium to a higher rate:

●     Adding a teenage driver to your policy

●     A DUI conviction

●     A lapse in coverage

●     If you are at fault for a car crash

●     A speeding ticket

●     If your credit score decreases from good to poor

Why it is important to invest in good car insurance

Now you know more about the price of car insurance and why it is important to delve deeper into the specifics of the policy, let’s reveal why investing in good car insurance will always pay off.

1.   You never know when you could be involved in a car crash or be the victim of car theft

There is only one place to begin, and this is with the fact that you simply never know what is around the corner. You could end up in a car crash because someone was using their mobile phone and crashed into you. This is unfortunate. It’s not your fault. But there is nothing you can do about it.

This is why it is imperative to make sure that you choose a good car insurance policy so that you are covered for those moments that are out of your control. You will be able to raise a claim and benefit from a simple payout process so that you can end up back on the road quickly and efficiently. If you have a poor quality policy, you may have to go through a whole host of obstacles to get the money that is rightly yours.

2.   The best car insurance plans offer a protected no-claims discount

If you make a claim on your insurance plan, your premiums will go up. That’s the way it works. It can seem very unfair, especially if you were not to blame for what happened. However, the best insurance companies offer a way around this.

They will provide you with a protected no-claims discount. This means that even if you make a claim, your no-claims status will be protected. So, when you go to renew your car insurance, you are not going to be met with a sharp increase purely because you have made a claim. Instead, you can keep your no-claims status alive.

You will find that you typically have to pay a small amount to add no-claims protection to your auto insurance. However, it is definitely worth it.

3.   You will get a courtesy car if your vehicle is out of action

If you are involved in an accident or someone has stolen your vehicle, not only is it worrying but it is very inconvenient. This is especially the case for commercial vehicles, which are used on a daily basis for business purposes.

The best insurance providers look to ease the burden as much as possible. If your vehicle is out of action for any reason relating to your policy, the insurance provider will give you an alternative vehicle so that you can keep mobile while you are without your own car.

Depending on the insurance provider you choose, there are a number of different ways that this can be added to your policy. For example, it can be included as a standard or you can have the option of adding it, so make sure you always check out the terms and conditions.

In a lot of cases, you may only get a courtesy vehicle if your car is currently in the garage receiving repair services.

Some companies will also limit your use of a courtesy car to a certain number of days, for instance, up to 28 days. Again, this is something that differs from provider to provider.

You should also find out whether a ‘total loss courtesy car’ is included. This means you are provided with a courtesy car if your vehicle has been damaged beyond economical repair or stolen.

4.   The best insurance policies offer 24-hour service

Another reason why it pays to invest in good auto insurance is that help will always be available to you. The best auto insurance providers offer an emergency helpline as a standard. After all, you never know when you might need assistance.

You can also expect other contact options from the best providers, such as email support and live chat.

5.   Expect extra benefits and features with a good auto insurance plan

Finally, the best car insurance policies go above and beyond to make sure you experience value for money.

Some ‘nice to have’ features that may be included are:

●     Breakdown cover

●     Legal assistance for recovering out-of-pocket expenses and personal injury claims

●     Hotel expenses

●     Accident transport from the scene

●     Cover for satellite navigation and stereo equipment

●     New car replacement if your vehicle is damaged beyond repair or stolen and not recovered (check how much you get, for example, this is typically 60% of the list price with most providers)

Balancing your premiums, excess, and policy features

When taking out a car insurance plan, it is all about balance. A lot of people will look at add as many features as possible and they will increase their excess so that their premiums are still affordable. While this may seem good on the surface, you can find yourself in a bit of a pickle if you need to make a claim.

If the time comes to claim and you cannot afford to pay the excess, you are going to find yourself in a bit of a deadlock, with no means to get the ball rolling. Remember, you must pay the excess for the insurance provider to pay the rest of the money required.

On the flip side, other people look for the cheapest policies, i.e. the lowest premiums and the lowest possible excess. However, you need to be mindful that you are not missing out on essential features when doing this.

There is no point in having a car insurance policy in place if it does not cover all of the things you need. You may only be paying a small amount every month, but you’re essentially wasting money if the insurance provider is not going to pay out in most situations.

Choosing a good auto insurance plan will always pay off

As you can see, it certainly pays to take the time to find an auto insurance policy that is right for you and gives you confidence.

The last thing you want is to find yourself in a situation where you need to make a claim and there is no help available to you and the insurer is doing everything in their power to avoid paying out.

This is why it makes sense to take the time and effort to find the perfect auto insurance policy for you so that you do not run into issues and hurdles later down the line.

Author bio (if needed):

Kerry Leigh Harrison has over 11+ years of experience as a content writer. She graduated from university with a First Class Hons Degree in Multimedia Journalism. In her spare time, she enjoys attending sports and music events.