When shopping for an insurance policy, make sure that you are asking the right questions. The wrong time to find out that you do not have the coverages that you thought you had, is after you have had a loss.
While price is important, it is not typically the only consideration. Having the right coverages first and then finding an affordable price, is the usually the best approach. Remember that your insurance is supposed to transfer your risk to the insurance company. In other words, instead of you having to rely on your own personal resources, following a covered loss, the insurance company assumes that risk. Some very important questions that you should ask yourself, before shopping for auto insurance are:
- If your vehicle was stolen, would it be important to be able to fix it, if it was found, or help pay for another if it is not recovered? If it is important, you should be carrying comprehensive coverage.
- If you were involved in an accident, that may or may not be your fault, would it be important for you to be able to repair or replace your vehicle? If it is, you should be carrying collision coverage.
- What liability limits do you really need? Do you own anything of value? Do you have a job? If so, in the state of Nevada, a lien can be placed against anything of value (your equity position) and if you are employed, up to 25% of your wages can be garnished in order to settle a judgement. Minimum limits are not appropriate for everyone.
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