So, what does the best car insurance look like? The best car insurance companies balance their rates with the amount of coverage they offer, so their customers don’t pay more than they have to and are covered when they need to make a claim. The best car insurance companies work with you to figure out how much car insurance you need and explain your policy to you. When you need to file a claim, the best auto insurance companies walk you through the process, keep you informed, and work with you to resolve any issues you have. The best auto insurers will help you understand how car insurance works and make you feel like you’ve gotten the best value for your money when you insure your vehicle. The best car insurance companies will also offer you auto insurance discounts for things like having multiple policies or a good driving record. Finally, the best car insurance companies have great customer service, keep their customers updated on the status of their claims, and make sure the customer is satisfied with the way the claim is resolved.
Gap insurance is insurance that may be required if you lease or finance a car. Gap insurance covers the difference between what your car is worth and what you owe on your auto loan should your car be a total loss in an incident. For example, let’s say you have a car loan with a balance of $20,000, but your car is only worth $15,000. If it’s totaled in an accident, your insurance will only pay out $15,000 and you will owe $5,000 to settle your loan. If you have gap insurance, that policy will pay the $5,000 to settle your loan balance.
Texas is one of four states that have seen the highest increase in auto insurance premiums over the last seven years, according to Consumer Reports. While part of that jump is due to increased repair costs for the added technology in new cars, extreme weather also plays a role, with Hurricane Harvey a recent glaring example. Over half a million vehicles flooded in Texas during that storm, significantly raising insurers’ annual losses for 2017, and in turn causing around an 8% jump in premiums this year. Add the fact that Texas is No. 1 in the nation for hail damage losses, and its position at the top of the rate hike leaderboard is no surprise.
You’ll notice that none of that liability coverage pays for your car or injuries, nor for any injuries your passengers sustain if you cause a wreck. This is why many people — particularly those whose car isn’t yet paid off — want “full coverage” car insurance. This isn’t actually a type of coverage, but instead typically refers to policies that include liability coverage, plus comprehensive and collision coverages.
You can also save on car insurance by choosing the lowest amount of coverage you can get while still making sure that you’re meeting your state’s legal requirements for insurance and giving yourself the coverage you need if you’re in an accident. For example, let’s say you choose to get the legal minimum for liability coverage, which we’ll say is $30,000 for this example. If you are at fault for an accident that hurts someone, resulting in $100,000 in medical costs for them, you will be on the hook for the $70,000 difference between your insurance coverage and the harm you caused. You can be sued and lose assets, like your home or retirement savings, if this happens – so make sure you have enough insurance to keep your assets in the event of an accident where you are at fault.
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