So when is it smart to lower or increase auto insurance coverage? Most insurance companies prefer you to carry a higher deductible. Why? Even though it costs you less, it’s more money that you have to come out of your pocket with when you need to file a loss, and the less the insurance company has to pay to cover it. So it is smart to raise your auto insurance deductibles? The answer depends on your financial situation. If you can afford to cover more money if a loss happens, then it could be a smart decision.
What about towing insurance and rental car insurance. It’s always a smart decision to add these smaller coverages. Towing allows you get reimbursed if you break down and need to be towed to a service station to get the repairs made. It’s usually a couple bucks a month and it could easily save you a $75 tow ticket. Rental car coverage is another necessity when your vehicle is in the shop due to a covered claim. On average it cost about $20 a day to rent a small compact car, compared to $5 per month or so for rental car coverage.
It’s always smart to make sure your aware of all your auto insurance coverage.