The Five Most Expensive Options You’ll Find In Car Insurance Quotes

When you compare car insurance quotes to get the best price for coverage, you might want to consider some of the more expensive components making up that quote. Standard auto insurance quotes include a number of non-essential car insurance options and many of them can be quite expensive. If you know what is required and what is an optional add-on, you can effectively decrease car insurance costs.

Be sure you have what’s required

Car insurance requirements are regulated by individual states so the necessary coverage options vary somewhat from state to state. Most car insurance quotes have the same standard elements. The primary common element in all state car insurance requirements is liability coverage, in the form of bodily injury and property damage. These two types of protection cover you in the event of an accident deemed to be your fault. They pay out the cost of repairing property damage and treating any bodily harm you cause to

others, up to the maximum payout per person in the accident and up to a maximum total payout. States specify the minimum number for both components of bodily injury and for property damage.

Sadly, bodily injury liability is the single most expensive portion of any car insurance plan and it’s something you can’t avoid having. However, you can avoid the mistake of under insuring yourself with this option. Most car insurance companies and agents won’t tell you this, but you will actually be charged a lower rate for getting higher levels of bodily injury liability coverage. It’s a way to protect your insurer from legal claims down the road and it illustrates your willingness to be a more responsible driver – something insurance companies will reward you for with lower premium prices and more discounts over time.

Options to look closely at

The next two most common components are typical in car insurance quotes, but not usually required – collision and uninsured/underinsured motorist (UM/UIM) coverage. Collision coverage applies to repairing your vehicle if it is damaged in a collision with another car, a stationary object or if you damage your car in a rollover accident. Collision is generally set at a limit equal to the current market value of your car and comes with a deductible. On a valid collision claim, insurers only pay for repair costs above the deductible amount.

UI/UIM coverage provides a safety net for accidents when the other driver is at fault but lacks sufficient insurance to pay for your property damage or personal injury costs.

Some states require drivers to carry UI/UIM coverage and will set required levels of this coverage. Many lenders and leasing companies will require a driver with a car loan or lease to carry collision coverage.

Some next level options

Many policies and car insurance quotes will also include comprehensive coverage and medical payments or personal injury protection (PIP) coverage. Comprehensive is an addition that covers damage to your vehicle and any personal property inside it that isn’t the result of a collision, such as fire, a flood, theft, vandalism, falling and flying objects, severe weather conditions or even damage caused by animals. Like collision, comprehensive is set at limits equal to the value of your car and comes with a deductible

Medical payments coverage is exactly what it sounds like, and it can cover deductibles and co-pays for your medical insurance as well as other collision-related medical expenses. PIP coverage is like medical payments but will typically cover additional costs such as long-term disability, lost wages and services, or even funeral expenses in the event of a fatality. These two options are often referred to as no fault insurance as they will pay regardless of who causes an accident. Some no-fault states require drivers to carry one or the other of these options on car insurance policies.

Costly and unnecessary? A bad combination.

Unsurprisingly, a few of these options coverage types fall on the list of some of the most expensive and unnecessary insurance options. Topping the list is collision. Add to this the notion of taking a low deductible, and you may find yourself paying far more than is reasonable.

Specifically in the case of collision and comprehensive coverage, both of which are reasonable, non-essential additions, your deductible is a very important consideration. Most policies offer between $200 and several thousand dollars in deductibles for each, and if you push for a lower deductible these options will get more expensive.

Unless you’re contractually bound to, you don’t have to get collision and comprehensive coverage. If your car is worth less than $5,000, you are going to pay that much in premiums in a few years, making either of these two items expensive and unnecessary options for car insurance coverage.

Medical clauses are perhaps the next most expensive options relative to how useful they are for most car insurance purchasers. If you already have health insurance – which will soon be legally mandated – it may not be worth paying what can cost up to $100 more extra each month as a way to manage your co-pay and deductible costs with your health insurance plan. If your health insurance has a very high deductible level or your state requires you to carry this option, it may make sense. Otherwise, look closely what what your health insurance will cover and try not to pay for redundant coverage.

One final policy option that is routinely slipped into a car insurance quote that can be very expensive is coverage for what is referred to as non-policy drivers. This most often applies if you want to include a child or spouse in your coverage for a vehicle. It’s especially expensive because when parents add children, they shoulder the cost of their youths’ high level of risk.

While you should routinely get competitive car insurance quotes, be sure to read and compare every quote more carefully, to be sure you only pay for the coverage options you need.

Jeffrey Davidson brings more more than 25 years of experience to his role as a writer with Reply!. He has worked in market research, public relations, consulting, writing, marking and sales in the car insurance industry. See his article on what goes into a car insurance quote.

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