Drivers have options when it’s time to shop for new Car Insurance In Santa Cruz, and selecting the right coverage limit can be difficult. By answering a few important questions, customers can reduce the guesswork and increase their chances of finding the right policy.
What’s the Driver’s Financial Status?
The customer should consider various financial factors before setting a coverage limit. The higher the coverage limit and the lower the deductible, the less the driver pays out of pocket for a claim. Those with substantial assets may consider increasing their liability coverage above the state minimum. If a person causes an accident and their policy won’t cover the damages, the other driver can file a lawsuit. When drivers lease or finance a car, the lender may require them to have collision and comprehensive coverage, which is equal to the vehicle’s value. Finally, lease/loan gap coverage may be beneficial in cases where the insurance settlement is less than the vehicle’s value.
Another important consideration is the policyholder’s driving record. Cautious drivers with clean records can safely opt for higher deductibles and lower monthly rates. However, those who aren’t as careful should consider higher limits for additional protection. When a person doesn’t drive much, they may be able to get away with minimum coverage, but those who commute through heavy traffic may need higher coverage limits. Typically, the more time a person spends in the car, the more hazards they face.
Most minor accidents happen in densely populated urban areas, and those who live in cities should consider upping their coverage limits. Parking is an important consideration as well; cars in home garages are better protected than those parked on crowded streets, where they’re more vulnerable to damage, vandalism, and theft.
When a person has a significant financial cushion, they may be able to pay high expenses after an auto accident. In such cases, a lower deductible means that the driver is able to assume more risk. However, most people don’t have emergency funds, and paying a higher premium for more coverage can offer the financial protection they need.
No matter a person’s skill behind the wheel, accidents may happen. With Car Insurance In Santa Cruz, customers can tailor their policies to protect their assets and gain additional peace of mind. Call Coast Auto Insurance or visit the website for more information.