November 9, 2011

What To Consider When Picking A Family Auto Insurance Plan

Finding a family car insurance policy can be difficult, as families generally need more coverage than individuals to stay protected. Many families also have one or more high-risk drivers, usually teenagers, and high-risk drivers mean higher auto insurance premiums. The good news is that many car insurance companies will offer special discounts and coverage programs to families, and by carefully considering coverage options and comparing insurance rates before buying a policy, families can find great coverage at a relatively low price per-driver.

The first step that drivers should take to find a family car insurance policy is to choose appropriate coverage limits. Family policies should generally have comprehensive and collision coverage along with liability coverage. These basic types of coverage will provide all of the drivers on a policy with sufficient protection to handle the costs of an accident, although families who don't have health insurance or who carpool frequently should also invest in personal injury protection, which pays for the costs of hospitalization and treatment for drivers and passengers after an accident. To choose coverage limits for each of these types of insurance, it's helpful to consider a family's average monthly budget and savings. Limits should provide adequate protection from the significant costs of an accident, ideally with an affordable deductible. Drivers should avoid high-deductible policies for families, since the chances of a claim are significantly higher than they would be for an individual policy.

Depending on the insurance company, add-on coverage can also be helpful for a family policy, but they add on to the total cost of the policy. Add-ons like roadside assistance coverage can be a great option for families and many insurance companies don't charge much for the extra assistance. The best tactic is to consider all of the insurance products that an insurer offers and to calculate whether the cost for coverage over two years outweighs the cost of a potential claim. Towing coverage, for instance, is only a few dollars per month, while towing services could cost hundreds of dollars. Families should evaluate add-on coverage individually to decide whether they're worth the money.

After choosing coverage and coverage limits, families should compare auto insurance policies from several providers to find the best possible deal. It's best to do this online, as most auto insurance companies make it easy to look up rates for different amounts of coverage on their websites. Families should be prepared to provide information on all of the drivers that will be covered under the policy. Shopping around as much as possible before making a purchase helps to keep the cost of a family car insurance policy at a reasonable level.