Risks of Having the Wrong Car Insurance Coverage
In most places, you need proof of insurance (or evidence of financial liability) before you can get behind the wheel of your car. The consequences of driving without adequate car insurance coverage, even on a first offense, can be significant.
Take the fines for driving without car insurance in Edmonton as an example: they can range anywhere from $3,000 to $10,000. Failure to pay that amount may result in one to six months in jail. Compared to the price of car insurance, this is a substantial amount.
Car insurance is essential to ensuring that you are taken care of if you be involved in an accident or collision while operating your vehicle. It might also help you if your car is vandalized or stolen while parked. Auto insurance can also help cover the costs of certain liability expenses should you cause damage to someone else’s car, their property, or cause injuries while behind the wheel of your own vehicle. With the right car insurance, you may have protection for some or all exposures you face on the road.
So, what if the car insurance coverage that you have right now isn’t right for you? Here’s what the risk is.
Responsibility if Your Insurance Coverage Falls Short
Many people will try to find the least expensive car insurance coverage, which can seem like a good idea at first. You have your base minimum coverage which allows you to operate your vehicle on public roads and you’re cutting costs. Surely, you’re saving money. What could go wrong?
Insufficient coverage
Unfortunately, if the only thing that you look at when you’re trying to find auto insurance is the price tag, you might be making a big mistake. This is because cheaper policies tend not to include coverage for everything that you need and will fall short if you get in an accident. If you have the wrong car insurance coverage and you get into an accident that your insurance won’t completely reimburse you for, you might be left on the hook for thousands of dollars.
Another mistake many people make resulting in costly expenses is choosing to only have collision coverage. Collision coverage covers you for accidents with other vehicles or objects. However, it will not reimburse you for damages or losses due to incidents when your car is stationary. For example, if something fell on your car when it was parked, your collision coverage will not help you. This is why having comprehensive coverage is essential.
Liability
Finally, many people severely underestimate the liability limit they might need. Mandates for car insurance will require a certain amount of coverage, and drivers often opt or the bare minimum to keep costs lower. What if you were found liable for hundreds of thousands of dollars, but your provider will only reimburse you for $50,000?
Some provinces have lower liability requirements than others. It is important that you truly consider the amount of liability that you want to avoid being in hot water later down the road.
Keep your insurance affordable without sacrificing coverage?
The main cause of underinsurance or having the wrong insurance coverage is a fear of paying too much. However, there are many ways you can save on your insurance without sacrificing any necessary coverage.
Choose a higher deductible
By opting for a higher deductible you may be able to save when it comes to your rates. The trade-off is that if you are involved in an accident you will be responsible for paying out this amount before your provider steps in to cover the rest. Ensure that the deductible you choose is realistic.
Investigate discounts
There are a variety of discounts available on the general market, including safety features of your car, good driving record, low mileage, multiple cars insured, claims-free or low claims, group plans, and more.
Compare Quotes
Work with an insurance broker to compare quotes and find plans that may not be available on the general market An insurance broker can also help work one-on-one with you to find you
It can be overwhelming trying to find car insurance that has the right amount of coverage and fits within your budget. The best method of ensuring that you get the right amount of insurance for a price that works for you is to work with an insurance broker. A broker will be able to provide you with all the insight you need to ensure that you’re getting what you need. It will also guarantee a personal touch throughout the process so you’ll never have to worry if your insurance is enough.
When you work with an expert, car insurance doesn’t have to be confusing. Get in touch with a broker and discover how easy finding affordable coverage can be.
