There are so many options available to drivers when seeking car insurance; it is a small wonder that the task sometimes seems overwhelming. The purpose of this blog is to give you a brief snapshot of the three most common types of coverages and help you decide which you need to purchase for your vehicle’s needs.
Comprehensive insurance often referred to as comp, is precisely that. Typically, this is the most requested coverage by finance companies and banks on leased or dealer purchased vehicles because it provides a good dose of protection. This coverage ensures that your car would be protected from vandalism, natural disasters of most kinds (Storms, floods, earthquakes), and as the driver, you receive baseline protection from any legal liability if you are involved in a wreck. Other unplanned expenses that can be added to your coverage under comprehensive policies can include rental/hotel reimbursement, towing fees reimbursement, roadside assistance, automobile or RV interior goods, and being able to select any repair shop you choose.
With the recent trends towards tiny home living, more and more people are getting on the road as full-time RVers, so the peace of mind that their belongings are covered under a policy similar to what traditional homeowners or renters enjoy. While many RV clubs focus their membership coverages on the repair and maintenance aspects of RV ownership, personal belongings are often an afterthought. This is because fixing an RV engine, powertrain, braking system, or replacing tires tends to be much more costly than the same repairs on a passenger vehicle.
When you and your family are shopping for a camper or motorhome, regardless of how often you will use it, make sure that you consider the financial investment of the items you have inside the unit. Mattresses, cookware, linens, and appliances can all get costly to replace if they are damaged in a collision or vandalism incident.
The other two options are selections of third-party coverages, and drivers can choose from Third Party Property Only and Third Party Fire and Theft. Under the Fire and Theft coverage, accidental damages, intentional damage (vandalism), and storm or flood damage are NOT covered. However, drivers who select this option will have rental reimbursement if their vehicle is stolen. Counseling and funeral expenses are also typically covered by this type of policy, and drivers do have the option of adding some extra coverage such as RV interior goods, business item replacement, and selecting the repair shop of their choice.
Third-Party Property Only is the essential coverage a driver can select for their insurance plan. This very no-frills policy only insures drivers against lawsuits associated with an accident, counseling, and funeral expenses. Damage to the vehicle, loss of the contents inside, and rental/hotel reimbursements are not covered or offered as additional services to these policyholders. This plan may be ideal for drivers who don’t spend much time behind the wheel but want the peace of mind of basic coverage to satisfy their licensing requirements.
Another thing to consider at the time you select your policy is the deductible. Historically, the greater the coverage, the higher the cost. When purchasing coverage, a good rule of thumb is to buy what you would need to recover from an accident or a breakdown that took your vehicle off the road. Look at your monthly expenses in every other area (phone bills, utilities, housing, food, gas/transportation payments), and then choose a deductible you could EASILY afford to come up with if the worst happens. This way, if you do need to claim your policy, you won’t be scrambling to come up with funds so that work can begin to repair or replace your vehicle.
Making the right choice when you purchase your new vehicle is only half of the equation. Finding the right insurance brokerage and the right insurance company to support you in keeping your vehicle on the move is just as vital. While you might wince a bit as you try to figure out how to afford the premiums on your insurance policy, skimping at the purchase price may come back to haunt you later. Shop around for the best rates on the coverages your family needs, and don’t be shy about asking agents if there are any available discounts. Many employers also offer discounts on coverage as a benefit, but these are rarely taken advantage of. Thus, we highly recommend having thorough knowledge before picking up your insurance policy.
