Car insurance tips
Now that you know what actually a car insurance plan is, you can learn some car insurance tips that will help you to put together the right policy for you.
What is your car insurance insuring?
Know your car insurance coverage types even if you’re buying a single insurance policy covering your specific vehicle, learn which components make up the cost of your car insurance.
Bodily injury liability: if your car injures or causes the death of someone, it will be covered as well as the legal cost. Property damage liability: protects the other party, the one that your car damages in an accident. It is required in all except three states. Medical payments: because this pays for injuries to yourself or the occupants of your car this is optional in some states. Uninsured motorist protection: this covers injuries to you or the occupants of your car by hit-and -run drivers, uninsured, or drivers with inadequate insurance. Collision coverage: is deductible; is the amount for the claim you have to pay before the insurance takes effect. The higher premium is equal with the lower deductible. This is legally optional although a leading institution or a leasing company might require collision coverage. Comprehensive (physical damage): comprehensive is a deductible and covers all of your car injuries from theft, vandalism, fire, wind , flood , to other non-accident causes.
Does your vehicle affect your premium?
The answer is yes. If you want a fancy car or sports car, your insurance company may charge you more to protect you while you’re on the steering wheel. Here are some car insurance tips to help you choose.
Insurance premiums are based partially on the price of the vehicle which concerns the replacement cost in case of theft or accident. So if you have put your eyes on a fancy sport car find out that you will pay not too dearly for your insurance car. By insuring a high-performance car you could pay up to two or three times the insurance amount for an ordinary model.
Do you affect your premium?
Actually you do. Even though the factors that affects your premium, on the most you don't have any control, it may have a greatest impact on your insurance costs. Facts like your age or your gender even you’re driving record are the primary checks that an insurance company makes when you’re applying for car insurance. So if you are a single male under the age of twenty five be prepared to pay more than a single women of the same age, because statistics show that young men are mostly involved in accidents. And of course drivers with clean records (no tickets, no accidents) pay the lowest rates.
How to decide how much coverage you need?
You know by now that is dangerous to be under insured but just having too much insurance can be pretty expensive. Here are some car insurance tips to help you sort things out. Not having a car insurance your property can be put at risk in an accident by your own fault. Let's say that the minimum amount of car insurance required in your state in a way is enough but remember that the more assets and income you have the more insurance you need.
Other important things to take into consideration when deciding on the types of coverage you need are things like the neighborhood you live in or the amount and quality of traffic you face most of the time. I’m saying that if your neighborhood has a really high rate of car thefts, a policy to cover something like that would be a really smart thing to have.
Can you reduce your premiums?
You can reduce a little your costs by buying a vehicle that qualifies for a discount or doesn't carry surcharge. Ask the insurance agent what are the costs of the car insurance on the vehicle your interested in, before you make a decision. But, if you don’t want to choose the car by these factors, there still are other ways to reduce your car insurance price aka your premium, just follow these simple car insurance tips:
Most companies give discount to those that drive less than 7500 miles a year. You could try car pooling. Make sure you get all the discounts you’re entitled to. Review the status of all the drivers in your family with your insurance agent. Increase your deductible for collision and comprehensive. Shop around. Study the market place when it's time to renew your car insurance other companies may offer a better rate. Drop collision coverage on older cars. Be a good driver, bad driving is expensive. Have your teenager share the family car instead of one of his one. If your teen makes a honor roll or moves away to college don't forget to tell this to the insurance agent because you may qualify for a discount. If you have a generous coverage on your health insurance, consider cutting off the medical payments of your policy.
I hope these car insurance tips will help you purchase the best insurance package but don't forget the internet, and a lot of the insurance companies offer online discounts or special offers. You can buy or compare rates from multiple providers from the comfort your own home.
