Have you ever tried on a piece of clothing that claimed to be “One Size Fits All”? It didn’t really fit right did it? In most cases, anything designed to fit everyone usually only fits a small amount of people and people are left feeling unsatisfied.
This is just as true about auto insurance as it is for clothing. That’s why it comes with a variety of options and endorsements that make it easier for you to get the coverage that makes sense for you and your unique situation.
Let’s look at those options and see why you may (or may not) want to consider them.
A lot of people mistakenly assume that their mandatory coverage (Third Party Liability and Accident Benefits coverages) protects their car or truck from most accidents, but the reality is that it only covers damage you do to someone else’s vehicle. If you’re at fault, damage to your vehicle is only covered if you have chosen to add Collision coverage (which is optional) to your policy. It’s highly recommended for most drivers, but there are cases where it might make sense for you not to have it.
The biggest factor in making this determination is your vehicle’s value. If you’re driving an expensive vehicle with a high resale value, then it’s a huge risk to go without Collision coverage. But if you’re driving an old used car that is worth less than your annual premium and/or deductible, then it doesn’t make financial sense to pay for Collision coverage.
You should consider Collision coverage if:
- You drive a vehicle with good resale value
- You don’t want to have to pay to fix damage to your vehicle or for a new vehicle without help from insurance
- You want to take advantage of AMA’s Insurance’s Complete Protection discount by adding both it and Comprehensive coverage to your policy
You might not want Collision coverage if:
- Collision coverage costs more than it does to replace your vehicle
- You can only afford to pay the minimum mandatory coverage
A lot of things can happen to your car when you’re not driving it. It can be stolen, vandalized, catch on fire, get damaged by severe weather, etc. While Collision covers damages that occur in accidents with another object, like another vehicle or a pole, Comprehensive coverage protects your car in other situations, like if its damaged by hail or flood.
Comprehensive has relatively low premiums, which is another good reason to consider adding it to your policy. But, once again, you should take the value of your car into account. If your annual premiums are higher than the vehicle’s resale value, you may want to save your money (maybe even for a newer car).
You should consider Comprehensive coverage if:
- You live or work in an area where your car is consistently parked out in the open or exposed to the elements
- Your vehicle has a good resale value
- You want to take advantage of AMA Insurance’s Complete Protection discount by adding both it and Collision coverage to your policy
You might not want Comprehensive coverage if:
- You believe your circumstances keep your vehicle reasonably safe from theft, vandalism and other kinds of unexpected damage
- Comprehensive coverage costs more than it does to replace your vehicle
- You can only afford to pay for the minimum mandatory coverage
It’s important to know what insurance endorsements are and how they can impact your insurance. An endorsement is an amendment to an insurance policy that changes the coverage to address your unique circumstances.
A good example of an auto insurance endorsement everyone should consider is the Family Protection Endorsement (SEF 44), which provides coverage to you and your family if injured by an uninsured or underinsured driver.
Talk to your AMA Insurance Advisor about what other endorsements may be right for you.
As a driver, you can make choices that will lower the cost of your premiums and save you money on your car insurance.
Here are just a few of the discounts/savings you could be getting:
- Winter Tires Discount
- Safe Driving Rate
- Loyalty Discount (Save on your insurance just for being with the same insurance company for the past four years — even if it isn’t with us!)
- Multi-policy Discount – combine your car and home insurance to save
- And more
It’s Up to You
Of course, at the end of the day, you have to make the choices that are right for you! Now you have some of the tools you need to choose the right combination of coverages and endorsements to meet your specific needs.