Owning a car means having insurance, no ifs, ands or butts. Not all companies have the same options, they are very different. If you educate yourself about the different options, you may save some money on your policy.
Make sure you keep your license clean. Moving violations and traffic accidents will result in dramatically higher insurance premiums. There are times when you can’t avoid the accident or ticket, so you should check out traffic school to see if this will help clean your record and make your insurance premiums lower.
When purchasing auto insurance for your teenager, consider your options. In some cases, it would be cheaper for you to get a separate plan for your child, than it would be to add him or her to your current one. Depending on the kind of vehicle they will be driving, it may be cheaper to purchase a separate policy for your teen.
Start taking the bus or find a carpool to lower your mileage. Insurance companies appreciate their customers being responsible and driving less miles is one way to show them. Letting your agent know that you frequently use mass transit or ride in carpools, can be a great way to lower your insurance costs.
When shopping for car insurance, you should understand that only the driver on the policy is being insured. If you let a friend use your car and they get into an accident, chances are your insurance will not pay. If you want coverage that will cover any driver of your vehicle, you can get it; however, it will cost a bit more.
Property Damage Liability
When purchasing car insurance, add property damage liability to your policy. This will compensate the other driver for any property damage you cause in the course of an accident. Only three states do not require liability insurance to operate a vehicle. If you are even involved in an accident, property damage liability can protect you from losing a large sum of money.
One of the best tips you can find regarding auto insurance is to keep your driving record clean. Getting in a cat accident will cause your premiums to increase right away. Do what you can to avoid accidents. Drive carefully and avoid taking roads you are not comfortable driving on. If you do not have good night vision, you should not drive after dark.
If you plan to move in the near future, be sure to check the car insurance rates of the location you are considering. The price of insurance will vary depending on where you are.
Choosing proper insurance is the key to saving money should an accident occur. Determining the right deductible is one thing to think about. The deductible is the amount that will be paid out-of-pocket by the driver in case of an accident, and setting a higher deductible is one way to save money on the annual premiums.
Don’t cancel your first auto insurance policy unless you have received your new auto insurance. You do not want to be without car insurance, even if it is just for a couple of days.
You shouldn’t buy new cars for teens. Instead, have your teen share a car with other family members. The cost of adding a new driver to your current insurance plan is cheaper than having to secure a new policy. Some companies offer discounts for students with qualifying grades.
Ask for a list of discounts available, or compile a list on your own based on the discounts offered. Use the list as a checklist to identify which discounts are applicable to you. You may also save a lot by claiming discounts.
You may be confused about how much coverage you need to carry. As a rule of thumb, the more assets that you own, the more liability coverage you should have. Remember, if you are faulted in a serious accident, the medical liability can reach hundreds of thousands of dollars. Many insurance agents recommend doubling the minimum liability coverage mandated by the state. It is very important to make sure you carry enough insurance coverage to protect your savings and other personal assets.
Paying your entire insurance policy upfront is often an available option. A lot of insurance providers charge service fees for policy premiums that are broken up into monthly installments. Save money by paying your entire policy upfront.
It should have a “consumer complaint ratio” statistic for all, or many of the insurance providers in your state. This statistic provides the percentage of an auto insurer’s claims that result in complaints.
You should always check to make sure your traffic record is clear before you change your insurance provider. Before issuing a policy, an auto insurance company will look at your driving history and record, so make sure that you pay all of the fines that you owe. This is not only the thing you should be doing, it can also help save money on insurance costs.
You should raise your deductible if you need to save money on a premium. The size of your deductible has a large influence on the amount of your premium. Be aware, however, that should you get into an accident, you will be in charge of paying for this higher deductible amount before the insurance will take over. For this reason, among others, you should give serious consideration to establishing a fund for emergencies, as you just never know what may happen.
The cost of auto insurance is not fixed. It varies from person to person. This is not just a matter of different circumstances and different cars. Some people can get the same coverage, if not better, for less money. By learning a few simple tricks, you too can save a lot on your auto insurance.