Auto insurance is large part of being a responsible vehicle owner. However, auto insurance policies seem to be written in the most confusing terms possible. This article can help you to better understand what all of those terms mean. By understanding the terms of the auto insurance world, you will be a more informed consumer.
When shopping for auto insurance, be sure to know the different types of insurance coverages. If you are just getting insurance on one car, there are still many things to consider. In case you hit someone, you can use bodily injury liability to pay for the legal fees.
When getting aftermarket additions, it is important to find out what your car insurance will pay for, should it be stolen. Insurance usually won’t cover the cost of aftermarket parts, but will add to the value of the vehicle.
Make sure to check insurance prices before buying a new vehicle. Your insurance agent can tell you what vehicles have the best premiums. This will help you decide between a used car and a brand new car. You can save on your insurance policy by choosing a model with a very good safety rating.
Many states require that you must have liability insurance if you own a car. As a responsible citizen you will need to determine the insurance coverage required in your state, and make sure you follow the law. If you get into an accident, and you do not have insurance you will suffer financially, but there is also a chance that you can get in legal trouble.
Pay for your car insurance quarterly or bi-annually rather than month-by-month. You can save around 5 dollars a month if you do this. The money wasted here adds up fast. Adding another payment to your monthly bills can create a hassle. If you cannot pay annual payments, you can look into semi-annual payments to keep down the costs.
If you drive a sports car, trade it in for something less sporty. Generally, it costs more to insure a sports car. Purchase a car that is more low-profile. Make sure that you pay attention to engine size, though, as vehicles with larger motors also cost more to insure. Sports cars also cost more for the insurance, because they are stolen more often than other cars.
Comparing the costs of different insurance policies for your car is not the only important factor. You should also examine items in fine print to find your deductible levels and benefit limits, if you should have an accident.
In the event of a crash, you can save yourself a great deal of time and money by properly insuring your car. On top of your insurance premiums, you will have a deductible that needs to be met before the insurance company will cover any of your costs.
You may be able to drop certain optional features from your automobile insurance policy. For instance, if you own an old vehicle which is not very valuable, you may not need to pay for collision insurance. You can save a considerable amount of money by removing collision coverage. Also, look into taking off liability and comprehensive coverage.
Even if you are certain you would like to change automobile insurance companies, it is smart to maintain your current policy until you have secured the next one. Not having auto insurance is a risky game of chance. Accidents can happen at the most unexpected moments, and you want to make sure you are covered no matter what.
Before buying car insurance, request policy rates from several different companies. If you want the best rates, you’ll need to do a little shopping.
Remove family members from your policy that do not operate your vehicles any longer. The more drivers you have on your insurance, the higher the premiums will be. Removing drivers that do not need to be covered by your insurance policy will save you money.
If you are in an accident and need to file a claim, be sure to get plenty of documentation. Use your cell phone to take pictures right after an accident occurs to record documentation that can be given to your insurance company. Think about keeping a camera in the glove compartment in case you need it someday.
If your car is in good shape and you own some assets that you need to protect, your level of liability coverage should be at least 100/200/100. Most states have specified that all drivers carry liability insurance coverage at required minimum levels. Your policy must comply with these requirements.
You may want to pay it all at one time. Certain companies will make you pay a fee if you decide to make monthly payments. A great way to avoid this fee is to start saving now, and when your policy is ready to be renewed, pay it off for the entire year.
Before purchasing a policy with an insurance company, do some research and see what you can find out about their reputation. There is more to think about when you shop for auto insurance than just finding the cheapest rates. As with other things, “you can’t get something for nothing” applies here. Those that quote unbelievably low rates can be the stingiest when delivering on claims and are often hard to deal with.
Many companies offer discounts for seniors, good drivers, or people who complete refresher courses. The discount is normally up to about 10%, which is a pretty decent amount.
Pick a higher deductible to get a low insurance premium. A higher deductible means you will have to cover the cost of minor accidents, but you will still be covered in the event of a total loss or if you cause an accident. If you are sporting a car that is not worth a lot, choose a high deductible.
Many auto insurance policies are filled with difficult to understand words and phrases. If you take the tips in this piece to heart and educate yourself about insurance policies, it will be possible to make smart, reasoned decisions about your coverage. When you break it down, the big words are just a way to say pretty simple things. Learning them will make you an informed customer.