Understanding how insurance works doesn’t have to be painful. However, when you have the proper knowledge, car insurance becomes much less intimidating.
Make sure you shop around before buying your insurance. Even though insurance companies all have access to the same information in your driving record, they use it differently to decide what to charge as an insurance premium. By checking out multiple competitors, you can find the best deal and save yourself a lot of money.
Keep your driving record clean. Your insurance costs can be a lot higher, if you’ve been in accidents or have gotten tickets. If your driving record is poor, consider taking a safe driving course to improve your driving and help avoid future accidents and citations. It can reduce your premiums over time.
Know the limits of your insurance coverage before you install valuable aftermarket parts on your automobile. It is most common for the insurance company not to want to cover the individual parts, but will likely cover the value of the total vehicle.
Many people mistakenly believe that insurance premiums do not begin to decrease until a young driver reaches the age of 25. The reality is that premiums steadily decrease once a driver hits 18, so long as he doesn’t have any accidents.
The type of car or truck you purchase is going to play a big role in how much money you pay for insurance every month. If you can’t be seen without a Lexus or a BMW, you’ll pay high premiums. Go with something modest and safe if you really want to save the most money.
Many of the accessories that you add to your car are unnecessary and costly, so think twice before you buy them. Though they may be a nice luxury, fancy stereo systems and heated seats are unnecessary. If your car should happen to be stolen or totaled, those cost of those additional items will not be covered.
It is better to pay your insurance in one lump sum each year rather than paying monthly installments. Car insurance companies can tack on anywhere from $3-$5 on average a monthly bill. This can be expensive over time. You also do not need another monthly bill. The fewer payments, the better.
The auto insurance you purchase should include property damage liability. This will take care of any damages that your car causes in an accident. In most of the United States, property damage liability is required by law. Property damage liability can save you major bucks in an accident.
The cost of car insurance is only one aspect of many that you need to consider. Know about what limitations you may face; what are the deductibles, what’s the level of coverage and what kind of limitations you’ll face, are a few good questions to ask.
If you plan on moving soon, look into how your new home will affect your insurance rates. A geographical factor that determines the cost of your insurance is crime rate.
Never cancel your existing policy without first getting coverage in effect with another company. 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.
Bundling your insurance needs can give you big discounts. This means you should try and purchase all your different types of insurance together. To ensure you get sufficient coverage and still pay low premiums, you might be better off with two separate policies.
Do not jump for the first lower rate you discover, though; check with your current insurers before changing companies. In many cases, they will be willing to decrease your rate in order to compete with lower prices.
In the unfortunate case of an accident that you have to file an insurance claim for, remember that your insurance company loves documentation. You can use your cell phone to record the time and place of any collision and the damage resulting from it. It can be a good idea to always carry a camera with you in the car, just in case.
There should be a “consumer complaint ratio” for many insurance companies in your state. These statistics compare the number of complaints issued by consumers against particular carriers.
If you feel that an imperfect driving record is unfairly affecting your auto insurance rate, then there may be a way to get that rate lowered. For example, some companies will reduce your rate if you successfully complete a driving course following a ticket or accident. Companies like Progressive offer temporary chips to monitor your daily driving habits and if they are consistently responsible, they will lower your rate.
These tips apply to almost everyone, including you! Use these tips when you are considering purchasing auto insurance. Your goal of course, is to obtain the best coverage possible at the best price possible.