Understanding insurance coverages and which ones you should have can be tricky. Even if you read all the definitions and feel confident knowing which coverages you need, it’s not always easy to decide how much coverage you need. Every individual’s needs may be different, but there are a few general guidelines that can help you make the most informed decision when purchasing a new policy.
First, lets talk about liability coverages. Regardless of your circumstances, you should look to get the highest liability limit(s) that you can afford. The reasons for this are (1) Liability claims against you can become very costly if you are responsible for medical damages suffered by others, and (2) the increased price of higher liability can be surprisingly affordable! You may be able to increase your liability coverage by hundreds of thousands of dollars for a relatively small increase in price—sometimes (literally!) just a few dollars more on your premium.
Next, there are coverages that protect your belongings. In auto insurance, for example, these would be Collision and Comprehensive coverage. If you’re financing or leasing a vehicle, these will be required. If you own your vehicle outright, these are optional. Whether or not these coverages are right for you will depend on the value of your vehicle and your personal financial situation. If you’re driving an older car that’s not worth much, you may consider not having these coverages, but if your car is worth more than you could bear to lose, Collision and Comprehensive coverage could be invaluable to you in the event of an at-fault accident. Remember: Liability covers losses to others; Collision and Comprehensive coverage is for your vehicle.
By shopping with Woop, you’ll not only benefit from a team of licensed agents evaluating your current insurance needs, but we’ll also use our extensive network of carriers to make sure you get the cheapest insurance available with coverages customized specifically for you.