Auto Insurance Basics: What You Need To Know

The very idea of learning about car insurance will make some people start sweating nervously. Just like everything else, it gets less confusing as you learn more.

TIP! See if your auto policy will cover aftermarket additions before buying any. Often, the company will only cover the value added to the entire car, not the actual cost of the additions.

When shopping for vehicle insurance coverage for your teen, ask your agent to give you a quote, both as a separate policy and also as an addition to your existing policy. It can sometimes be cheaper to purchase a different policy, but this depends on what vehicles are involved.

Avoid letting your insurance coverage lapse to help keep your rates lower. Lapses can easily occur when switching carriers or policies. Use caution and proper timing. Once the insurance company finds out about the gaps, they will raise your rates.

TIP! It is required by most state laws that you have sufficient liability insurance as a driver. It is up to you to find out whether your state has such a law and, if it does, make sure you are in compliance with it.

There are optional protections past legal protections that can further protect you. If you use these options, your premium will increase; however, it may be worth it. Uninsured motorist protection is a means to protect yourself from drivers who do not have insurance.

Switching cars between different family members is not advisable if you want low premiums. By keeping one driver attached to each vehicle, you can keep your costs low.

TIP! To lower car insurance costs, don’t share cars among members of your family. By keeping one driver attached to each vehicle, you can keep your costs low.

When signing up for your auto insurance, remember that only you are covered unless you specifically add others to your policy. Insurance companies rarely pay for accidents that occur when a friend or some other party is behind the wheel of the vehicle. There is an additional coverage you can purchase as part of your policy that will let you loan your car to others if you choose. This option will cost you more though.

Sports Cars

TIP! Reconsider purchasing costly add-ons for your car. Custom rims and a top of the line stereo system are not really necessary for your car.

Sports cars will require you to pay more to insure your vehicle. Insuring a sports car is expensive. Buy a vehicle that is not as popular and high profile. Vehicles with larger engines are more expensive to insure. Sports cars are likely to be stolen more often. Because of this they are more expensive to insure.

Discuss your options with your agent and ask for a list of discounts that are available. Read through every possible discount and see which ones apply to you; after all, you want to save a lot of money.

TIP! Make certain that property damage liability coverage is included in your policy. If you don’t you may find that you are paying out of pocket for the mess you create when you have an accident.

You can pay less for auto insurance if you subscribe to a bundle insurance. If you insure your car and life in a bundle, you can save money. Make sure to compare the cost of combining your home and auto or insuring them separately before making the decision to bundle.

It is a bad idea to buy a teenager a car. Instead, allow them to drive a vehicle your family already has. Adding them as a secondary driver to your current insurance plan is cheaper than giving them their own car insurance policy. If they get good grades in school or remain on the honor roll, they might even qualify you for a discount.

TIP! You can save a lot of money with the right coverage if something happens. The insured will be required to pay a predetermined deductible determined by their insurance provider.

Racking up minor driving offenses and traffic tickets can cost you money when it’s time to pay your car insurance premiums. When they expire, though, your insurance rates will go back down. Make sure you get a new quote after your old infractions expire to take advantage of your lower rates.

Let your insurance agent know if you see a lower rate and are thinking of switching. They will probably cut you a deal so that you continue giving them your business.

Insurance Company

In the unfortunate case of an accident that you have to file an insurance claim for, remember that your insurance company loves documentation. Use your cell phone to take pictures right after an accident occurs to record documentation that can be given to your insurance company. Keep your camera in your glove box if you do not have a camera on your phone.

TIP! Write down a list of each discount your insurance company offers. Go through that list and put a check mark next to any that apply to you.

Consider how much monthly insurance rates will be before purchasing a car. Don’t forget that insurers have a more favorable view of safer cars. Most sports cars are not considered “safer vehicles”. Figure out how much those insurance costs will be and take that into account when choosing which vehicle to buy.

If you own a valuable car, think about getting 100/200/100 coverage. Most states have minimum requirements for liability insurance coverage and it is important that your policy meets or exceeds all required coverage levels.

TIP! If you find a rate from another company that will give you the same coverage at a lower price, check with your current company first. They’ll usually lower your rates to avoid losing your business.

If you are going to change companies, ensure that you have cleared up any money you owe to anyone. There is no reason you should not clean up your driving record, and you can be certain that insurers are going to examine it carefully. Besides being the right thing to do, it can have a positive impact on your insurance premiums.

One of the best things that you can do in order to decrease your auto insurance premium is by having an alarm, tracker or immobilizer installed in your car. Owning a model of car that is frequently the target of thieves, can result in much higher rates. By making your car as secure as possible, you will help ensure lower premiums as the risk of theft, and a big insurance payout, is significantly decreased.

TIP! Documentation is key when you need to file an accident claim. Taking pictures with your cell phone is very helpful in recording any damage done where a claim must be filed.

If you have drivers that do not drive or live with you, take them off of your insurance. If there is someone who never drives your vehicle remove them because your premium will go down. Removing young drivers from your policy can greatly lower your premiums.

Almost anyone can benefit from the tips listed here. Apply these tips to the auto insurance plan you’re interested in. This article should have shed some light on how to get the best coverage possible for a price you can afford.