It’s really quite simple - it’s to protect your bacon!  You purpose of your auto insurance policy is to protect you from financial loss so that you are not financially devastated by an accident. 

This means the more types of coverage you buy with your car insurance the more protected you should be.  Sounds pretty simple right?  Well not really.  You need to understand the coverages you are purchasing and to make sure you don’t over insure and that the coverage you purchased is what you really wanted.

There are three quick tests to make sure you have the coverage you need is to do these three simple insurance tests.  If your policy passes these three quick tests you’ve got the right coverage.

• Test #1 - Is your coverage duplicated.  Try to insure for the same risk as few times as possible.  Overlapping coverage is inefficient and costs you money.  The way the car insurance industry works it is sometimes difficult not to duplicate coverage but in many cases you can eliminate the duplicate coverage. 
  
• Double coverage often occurs with collision and comprehensive coverage.  People buy uninsured and underinsured motorist property damage insurance but really you don’t need to because your collision will cover damages done to your car by the uninsured driver and if your worried about an uninsured driver hitting your house, well that’s what your home insurance comes in.
  
• Test #2 - Do you have the broadest coverage available? For example if you are buying insurance that covers your car if it should become wrecked search for coverage that covers your wrecked car no matter what, rather than buying one coverage for an auto accident, one coverage for fire, and one coverage for theft.  You might not be able to combine everything with one coverage but you should be able to do coverage such as fire and theft. 
  
• Test #3 - Are your dollar values consistent through out your policy?
  For each coverage you purchase you will be asked what your vehicle is worth.  Make sure you keep the dollar value the same for each coverage.  For example if you value your car at $5000.00 on your accident coverage, you shouldn’t value your car insurance at $8000.00 on theft.  Most car insurance companies won’t allow it, and if you find one that does and an accident occurs you are only going to get the lowest value you stated but you’ll have paid higher rates. 
• Compare Insurance Coverage

If you passed the three question test you’re an excellent auto insurance shopper.  If you haven’t now is the time to make corrections and shop for new insurance coverage.  No matter what you are insuring - motorcycle, car, truck, RV, or motor home you can find affordable insurance.  So are you ready to save money and get an insurance quote and Low Cost Insurance today?