When you first start hunting for car insurance, you might feel overwhelmed by all the options. On one hand, you want to save money. After all, you already have enough expenses because of your vehicle. On the flip side, you definitely want the best insurance coverage so that you can sleep at night knowing that you’re protected in the worst case scenario.
You need to find the right balance between getting adequate coverage for your needs – and saving money so you don’t break the bank. This can be hard to do when an insurance agent is trying to sell you on the virtues of car insurance extras.
Before you decide to accept add-ons to your policy, it’s important to think about whether or not you really need the bells and whistles. Here are five car insurance extras you probably don’t need:
1. Emergency assistance
You may already be covered with CAA or another company. You might be able to save money by cutting this option out of your plan. You can start off by researching the prices of external roadside assistance plans. You don’t have to go with your insurance company for everything.
2. Disappearing deductible
The disappearing deductible premium helps you save an extra $100 off your deductible every year that you go with a perfect driving record. The obvious catch is that you have to pay for this feature. Is the cost worth it? Not always.
Rather than sign up for a disappearing deductible, consider building an emergency fund so you can cover the full deductible every time. Prioritize so that you don’t need a disappearing deductible.
3. New car replacement
As the name of this additional feature suggests, you have your new car replaced properly if you were to get into an accident. This is definitely an insurance extra that you can cut out to save a few bucks. Everything with this add-on depends on the type of car you decide to drive and how comfortable you are with your driving.
The basic concept with accident forgiveness is that you hope to be forgiven for your first at-fault accident with your new insurance provider. This means that your premiums won’t go up after the first accident. While the idea is beneficial, the policy doesn’t always hold up. As always, there are fine print and limitations to accident forgiveness. You can cut this out if you’re confident in your driving abilities and your driving record.
5. Funeral or accidental death insurance
You could already be covered under your life insurance policy. You don’t have to spend the extra money on this extra car insurance feature.
Trying to decide on a car insurance plan is stressful enough. Don’t let someone scare you into getting car insurance extras you don’t need. Cut out the add-ons if you want to save money on your insurance policy while still remaining covered. Review your policy so that you know exactly what you’re paying for. You may find other features that you can live without.