When is it Worth Paying More for Car Insurance?

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With all of the insurance company commercials on TV, most consumers are told to shop around for the lowest car insurance rates available. While everyone likes to save money, there are some instances when scrimping on your car insurance is far from the best route to take. Sometimes, paying more can actually provide you with some benefits as a vehicle owner.

When You Have Health Problems

If you have serious health problems, paying more for a premium auto insurance policy may indeed be a very good idea. In some cases, drivers who have health problems can’t be sure that they will always be at their best behind the wheel. If your health problems could cause you to lose control of the vehicle, having a good insurance policy could be in your best financial interests. This way, your policy will cover most of the out-of-pocket costs that come with repairing or replacing your car after a wreck.

If You Drive an Expensive Car

If you drive a more expensive vehicle, you may want to get a better insurance policy. This is especially true if you borrow money through an loan to pay for the vehicle. When you buy an expensive vehicle, it may be extremely difficult to pay to replace the car or repair it. When an expensive car is damaged, it can sometimes be difficult to secure the necessary parts to fix it.

Many expensive cars also have to be repaired by specific mechanics and you can’t simply take it to your local repair shop to have it fixed. Because of this, having a good insurance policy that will help you pay for these potentially expensive repairs is a good idea. Otherwise, you might end up having to pay a lot of money out of your own pocket to make the repairs or at worst replace the car. If you’ve splashed the cash on the car, you might as well make sure it’s fully insured against all eventualities.

When Driving in Another Country

If you plan on driving your own vehicle in another country, getting a premium auto insurance policy is probably in your best interest. Many regular auto insurance policies do not cover driver’s who drive their vehicles in other countries. For example, if you live in the United States, you won’t be able to take your car down to Mexico and get full coverage.

There are insurance policies that will cover you while driving in other countries. Some policies provide coverage, regardless of where you drive your vehicle. Without this type of policy, you are taking a big risk by driving your car in another country. If you wrecked your car, you might be forced to pay the entire amount to replace the car out of your own pocket.

If you still owe money on an auto loan and this happens, you’ll be stuck paying for a car that you can no longer drive. When you’re making loan payments on a car that you don’t have, it can be extremely difficult to afford another auto loan payment. You might not even be able to qualify for another auto loan even if you could afford to make the payments.

This leaves you in a situation where it can be very difficult to get another car to drive. In this situation, you should review the terms of your auto insurance policy before you travel to another country. If your policy doesn’t cover driving in other countries, consider adding that coverage to your policy or getting a completely new insurance policy so that you’ll be covered.

Additional Coverage

Paying more for an auto insurance policy can also give you some additional coverage options. For instance, your policy could provide rental car reimbursement or roadside assistance. Having these extra coverage options can provide some financial peace of mind while driving your car.

Contributed by Andy at FinanceChoices.co.uk, a comparison website for consumers in the UK.

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