Just a few years ago you purchased a car that was brand new, but as the years have gone by and the mileage has increased, you may find your N.C. auto insurance policy may need to be adjusted. When you drove out of the car lot, you most likely took out full auto coverage, either by choice or required, depending on whether there was a lien on the car. This full auto protection was necessary then, but is it now or are you paying for some coverages you no longer need? Saving money as your car ages is indeed possible if you are aware of some key tips.
N.C. Auto Insurance Coverage Options…Mandated or Optional?
First of all, let’s talk about N.C. auto insurance and what is optional coverage and what is mandated. The State of North Carolina requires that if you own/operate a vehicle you are required to carry liability insurance. Liability insurance includes protection for bodily injury (BI) and property damage (PD) to others as a result of your negligence in the operation of your car. There are minimum required limits of liability, so, it is wise to discuss how much is enough. Carefully evaluating this with your local N.C. independent insurance agent can help determine how much liability coverage you may need depending on your particular situation and budget.
Collision and Comprehensive Coverage are insurance coverage(s) that are usually optional; however, if you do have a lien on your car, this coverage is typically mandated until the car is paid off. Collision coverage provides protection for your car should there be a collision; while comprehensive coverage is protection for your car resulting from losses such as vandalism, fire, theft, broken windshield(s), or hitting an animal. Both coverage options are subject to varying deductibles which can range from zero to $1000. The higher the deductible, (the amount you elect to pay out of pocket due to a covered loss), the lower your insurance premium.
Saving Money Doesn’t Have to Be Difficult
Now that your car has some age on it, ask yourself how you can save the most money while still affording the necessary protection you need and deserve. As discussed, you MUST maintain Bodily Injury and Property Damage (Liability) Insurance; however, if your car is now paid off, could you drop the Comprehensive and Collision coverage? It may be wise to discuss this with your local N.C. independent insurance agent to determine whether you could afford to repair or replace your car (out of pocket) should you be involved in an accident that is your fault.
OR…if this isn’t an option, perhaps you can save money by increasing your deductible amount. Let’s assume you have $100 deductible currently and wish to increase that to $1000. Obtain a quote from your independent insurance agent to see how much money you can save.
Some Factors to Consider Regarding Comprehensive and Collison Coverage and Saving Money
Before electing to cancel this type of coverage, you may need to consider a few factors. First of all, if your car is 10 years old or older, Comprehensive and Collision coverage may cost you more in premiums than a claim payout should there be a covered loss. So, consider the following and feel free to discuss with your independent insurance agent:
- Age of Car
- Replacement Value
- Actual Cash Value
- Resale Value
- Condition of Car
- Kelley Blue Book Value
Determining how much your vehicle is worth, in case of a total loss, is something to consider before you decide to keep this coverage on your N.C. auto insurance policy.
Before canceling this type of coverage determine whether the cost of the insurance premium coming from Comprehensive and Collision is more than 10% of your car’s value. If so, then the claim payment, following a covered loss, would be less than the amount you pay for those coverage options.
Call Twin City Insurance TODAY to Find Ways to Save Money
Our job at Twin City Insurance is to provide the best auto protection to meet your specific needs and budget. We can assist you with any questions or issues you have pertaining to ways you can save money by adjusting your N.C. auto insurance policy. A few simple changes can make a difference in your insurance premium so call us TODAY at 828-464-2643.