Car insurance isn't cheap. For many people, insurance can be a significant portion of their monthly vehicle ownership costs, so it's natural to look for ways to reduce your premiums. Unfortunately, cheaper premiums often mean less coverage, making you more financially vulnerable after an accident and leaving you with higher out-of-pocket costs.
However, not all insurance upgrades are pricey. People often overlook some of the best deals in automotive insurance because they either don't know about them or think they cost too much. Check out these three surprisingly cheap insurance upgrades if you're looking for ways to improve your insurance coverage without breaking the bank.
1. Lower Comprehensive Deductible
Your comprehensive coverage takes care of vehicle damage that occurs outside of collisions. Common examples of comprehensive claims include hail, fire, fallen trees, theft, and so on. These events can range from relatively minor to catastrophic, so their costs can vary significantly. If your comprehensive deductible is very high, you may have almost no coverage for small events.
While most people know that lowering their collision deductible can be pricey, few realize that comprehensive deductibles are often relatively cheap. If you're looking to protect yourself against the unforeseen, a much lower comprehensive deductible is worth considering, even if you have a high collision deductible.
2. Glass Coverage
Glass damage is almost unavoidable if you do any significant amount of travel in your car. However, repairing damage to a windshield is relatively cheap. If you have a $250 or even $100 deductible on your comprehensive coverage, you may end up paying as much as half (or more!) of the repair costs out of pocket.
Glass coverage is a typically very cheap insurance upgrade that reduces or eliminates your deductible when making a glass claim. This inexpensive upgrade is worthwhile since you're far more likely to make glass claims than other coverage claims. Reducing or eliminating your deductible ensures you pay as little as possible for these repairs.
3. New Car Replacement Coverage
Replacement coverage generally only applies to cars bought new from the dealership, and your car will need to meet certain requirements to qualify. This coverage protects you early in your car's life when it may lose substantial value relative to its original purchase price. New car replacement coverage makes up the difference, so you receive the purchase price as a settlement instead of a depreciated value.
This coverage rarely gets used since it only applies if your car becomes a total write-off early in its life, but the low cost hides its true value. If the worst does occur, this coverage can save you thousands and ensure you can get back into a brand-new vehicle.
Reach out to an auto insurance agency to learn more.