Insurance Coverage for Our Family

Why Your Car Insurance Coverage Might Not Be Adequate Under These 5 Circumstances

3 April 2018

Christian Byrd

Just because you have car insurance, it doesn't mean that you are fully protected from all the damages or injuries your car may cause. You need to analyze your situation to determine whether you need to increase your coverage limits or buy an additional form of coverage. This analysis is even more necessary if you fall under any of these circumstances.

1. Your Car Has a Low Safety Rating

Some cars are inherently dangerous than others. For example, if two cars are involved in the same accident, one of them may experience more body damage than the other one. There are also cases where one car rolls several times and the other remains upright after colliding. Cars with low safety ratings cause more injuries and experience more damages than others; this translates to costlier damages in case of an accident. Therefore, if you have a car with a low safety rating, consider raising your coverage limits.

2. You Drive a Lot

The more you drive, the more you expose yourself to road incidents and accidents. This increases the risk of damaging your car, damaging another person's car or causing injury to you or other road users. In fact, even auto insurance carriers are aware of this fact, which is why those who have higher annual mileages pay more than those who don't drive a lot. Therefore, if you are one of those with high annual mileages, consider upping your coverage.

3. Your Car Is a Thief Magnet

As you know, car insurance not only pays for car damages or injuries, but also for lost (stolen) cars. Again, some cars attract more thieves than others, probably because they are easy to sell or it's easy to get lost with them. If your car is a thief magnet, then you should get comprehensive coverage because that is the only coverage that can replace your car if it's stolen.

4. You Have a Teenage Driver

Teenage drivers cause more accidents than other drivers even taking into account the number of teenage drivers on the road. This is partly due to their inexperience and partly due to their affinity for risks. Therefore, if you have a teenager in your household, you should up your insurance coverage to protect you from the increased risk.

5. You Have an Expensive Car

Lastly, you should also consider increasing your auto insurance coverage and buying comprehensive coverage if you have an expensive car. This is because an expensive car will cost more to repair in case of damage, and it will also cost a lot of money to replace if it's stolen.

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