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Auto insurance is something everyone has to have. Most states have made it a legal requirement. The high costs of insurance are a problem, though. They’re a problem as they convince people to take cheaper policies which don’t give them everything they need. Before settling on the cheapest policy you can find, make sure you have the right amount of cover.

Rental Car

If your car is off the road for any reason, it can leave you struggling to get to work, your kids’ soccer practice, and any other commitments you’ve made. With some insurance policies, you’re automatically given a rental car if your car has been taken off the road. It makes for a more costly policy, but it can save you lots of hassle.

Exclusions

Nearly every auto insurance policy has at least one exclusion. Check your policy for exclusions before taking it out. If your car is damaged or scrapped and your insurers find you broke one of their exclusions you won’t get a cent. Common exclusions include making modifications to the car, wear and tear, and rust.

A good car insurance policy has a minimal number of exclusions. If you’re someone who enjoys tinkering with their car, policies which prevent modifications have no value to you. It’s always best to pay more to remove these exclusions than to restrict your motoring habits.

Automatic Renewals

Opt for a policy which doesn’t automatically renew itself at the end of your term. Even if they offer you something like a price freeze, it’s usually best to have this taken out of your agreement. Upon the expiration of every auto insurance plan, you should review it and see if it’s still good enough to suit your needs.

And prices change rapidly in the insurance industry. At the end of every term, you should check if you can find a better, and cheaper, policy elsewhere.

Comprehensive Cover

Make sure you take out a plan with comprehensive cover. This will cover you in practically any scenario. Lesser policies usually only cover any damage you do to other people and their cars. Moreover, not taking out comprehensive cover isn’t always a good way to save money.

In recent years, third party only (the lowest insurance level) cover has increased exponentially. This is because insurers know young drivers, who are a high risk group, tend to opt for this policy. To offset the risk, they’ve increased the prices. The differences in price are, therefore, marginal at best.

Uninsured Motorist Coverage

Uninsured (or underinsured) motorist coverage is a part of your auto insurance policy which protects you if you’re involved in an accident with someone who either has no insurance or who has a minimal level of insurance. If you don’t have this coverage, you might not have your expenses covered because you claim from the other driver’s insurance company. And if they don’t have comprehensive coverage they don’t have to pay you a cent. Inevitably, this will leave you with the bill.

Victoria Heckstall writes on a variety of auto topics. She highly recommends towbar wiring by Car Towbars and towbars by Car Towbars.