1. Collision Insurance – proud owners of old cars don’t need this
If you are the proud owner of an older model car more than 7 years old, it's only worth a couple of thousands of dollars. Work out the math yourself - the insurance company won't pay you any more than the value of your car, so if the value is the same or less than your deductible, you won't get any money. The minimum policy required by law is enough in your case.
2. If You Have a Car Loan, You Need Gap Insurance
If you have a loan for your car, you should also consider gap insurance. Here is why, you take out a loan for $30,000 and drove home a shiny new car. But when your car is totaled and the insurance company offers to pay you $27,000 for the car, the bank is going to still want the $30,000 you owe, so you need to plug the gap –hence gap insurance.
3. No protection against hurricanes
This can happen to you sooner than you think. In the recent aftermath, many owners who lived in coastal towns and encountered major hurricanes who caused major damage to their home. Sadly hurricane insurance is not part of your homeowner's policy, and you might hear something like this about your car damage because of the hurricane. All you will get to hear from the agent is that you ought to have read your policy. But that’s not as easy as it sounds, right? Watch out for the technical term it’s called anti-concurrent language.
4. The language in the car insurance policy
Ever tried to read your insurance policy? The higher your level of education or the more your financial-savvy knack, the worse you will feel. That’s because these policies are written in an extremely complicated way. New laws are in place in most states to make insurance companies write their policies in plain English. Just the way you talk to your wife, plain speak and not greek or latin which goes over your head.