If you are like most people, the economy has taken a toll on your finances.  The fact is more and more people are trying to find ways to cut expenses.  Would you like to know a few simple changes you can make to your North Carolina Auto Insurance?

Do You Need “Full Coverage”?

In order to determine whether or not you need “Full Coverage”, first we must define what “Full Coverage” is.  If you ask 10 different people, you are likely to get a number of variations as to what “Full Coverage” means.  For our purposes, “Full Coverage” means having both Comprehensive and Collision Coverage.  In North Carolina, you can add additional coverages like Towing & Labor Coverage and Rental Reimbursement.  I view these are “extras” that work in addition to your “Full Coverage”.

To start with, if you are currently financing a vehicle, your lender requires you to maintain “Full Coverage”.  For those of you that do not have financing, you have some decisions to make.  Here are some questions that will help you determine if you NEED “Full Coverage” Auto Insurance:

  • Model Year – I often see people maintain Full Coverage on automobiles that are 15 years old, or older.
  • Current Value – Do some checking, there are a number of sites that will tell what your car is worth, if your car is valued below $5,000, you should think about your NEED for Full Coverage
  • Financial Status – This may seem counter-intuitive, but a person with a lower Financial Status should consider keeping Full Coverage on a vehicle.  The theory is that if the replacement cost of your car is more than you could come up with in a short period of time, you should maintain Full Coverage.

These are the major questions you should ask yourself with regard to your NEED for Full Coverage.  Of course, each individual has their own needs, so please consult a knowledgeable agent to help you with this decision.  The facts are, for most auto insurance policies, the “Full Coverage” portion of you policy is about 50{66506b27ca8f5234034d808fc0aabc14bc16ceb45d71027974b073b60f711cfe} of the total premium.

Raise Your Full Coverage Deductibles

When the Theory of Insurance was first established, insurance was meant for Catastrophic Protection.  Today, most people look at insurance as a way to make their lives easier.  You will save money on all insurance premiums if you can adopt a “Catastrophic Viewpoint” with regard to your insurance coverages.

Comprehensive Deductible

The Comprehensive portion of your Full Coverage is less expensive compared to Collision.  Many people carry deductible of $0, $50, and $100.  If you want to save money, consider increasing your deductible to $250.  Of course, you can go higher, but most comprehensive claims will be $500 or less.  There is a good possibility that if you go to a deductible of $500 or greater, you could deductible yourself out of a coverage.

Collision Deductible

This is where you can really see some savings.  Again, I am amazed at the number of people I see that carry Collision Deductibles of $100 & $250.  With the car of today, if you are in an accident that requires your collision to kick in, there is a great chance that the total damage will exceed $500.  In addition, $500 is an amount that most people could come up with in the case of an emergency.

Know Where To Cut Coverage

If you will take an honest look at the questions posed above and alter your Deductibles a little, you can see some meaningful savings with your North Carolina Auto Insurance. Unfortunately, most people just try and slash their policies down to the bare minimum.  I urge you to avoid this!  Never cut your liability limits.  If anything, you should review your Liability Limits to make sure that you have enough coverage (most people don’t).  The last thing you want, or can afford, is an “at-fault” accident where your liability limits are not sufficient.

About The Author:  Jack Wingate is a Professional Insurance Advisor and Founder of ALLCHOICE Insurance in Greensboro, NC. For more information about Jack Wingate, ALLCHOICE Insurance, or North Carolina Auto Insurance please visit http://www.allchoiceinsurance.com

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