Car Insurance Tips

car insurance tipsHave you ever asked yourself the simple question, do I have the proper car insurance coverage? Every person has different insurance needs, from the amount of coverage to extra add-ons like towing. While most people know the difference between liability and collision coverage, they often don’t really understand the consequences of their own policy choices until a claim is made. Getting properly covered at great rates is what your objective should be and in that order.

Most people go out shopping for auto rates and only look at the cheapest pricing. While the lowest price available is critical to most, the proper coverage that you need, should be your foremost insurance goal. Let’s take a closer look at basic car insurance tips that will help you get the adequate protection needed to fully protect you and your family while also save you some hard earned money.

Types of Auto Insurance Coverage

You should keep in mind when purchasing an automobile policy that your personal assets, in addition to your health, should be at the top of your priority list. Once you have met your coverage objectives. Then you should focus on the cheapest rates for the coverage you need. The primary types of vehicle insurance are:

* Liability: This type of protection will pay for 3rd party injuries to persons and also claims that are death related. Also, liability will compensate the other party involved in an accident for property damage that results from an accident you were involved in. In nearly all states, this type of coverage is mandatory.

* Collision: This protection will pay for repairs to your vehicle as a result of an incident, most often resulting from an auto accident. If you are leasing a car or are financing, you will be required to purchase collision coverage. This is done so the funding company protects the investment risk they have made.

* Comprehensive: This type of coverage will pay for damages resulting from almost anything other than vehicular accidents. Some of the common incidents that comprehensive covers include theft, fire, water damage and animal hits. If your car is worth more than $7,000 and you want total protection from nearly any possible incident, then comprehensive insurance should be strongly considered.

* Uninsured Motorist: This valuable coverage will pay for property damages as well as medical costs if you get into an accident with someone who has no automobile insurance. In recent years, as more and more drivers hit the roads uninsured, this coverage has become increasingly valuable. Although uninsured driver insurance is slightly more expensive, is strongly recommended if you can afford it.

* Important money saving car insurance tips. If you are considering getting collision coverage but are concerned about the added cost, get a higher deductible, which will greatly lower your premium expenses. This cost savings should make the added coverage affordable for most budgets. Typically, you can save more than 10% on your premium with a deductible of $1,000 or more.

Another great tip is to not get overlapping coverage. Some people already have rental car ins provided by their credit card company and unknowingly get double coverage and needlessly pay twice for the same thing. Likewise, some people have a breakdown or towing coverage through services such as triple-A insurance and thus do not need to add this to their policy.
Make sure you only buy the insurance you need and always carefully go over your policy details before purchasing it.

Insurance Options to Consider

Beyond the basic types of car insurance coverage, there are additional options you might want to include in your policy.
Full Tort and Limited Tort: Many people do not know that you can save a little on your insurance cost by giving up the right to sue in court, in the case an incident occurs.

Gap: Have you ever thought of a worse case crash scenario like leaving a car dealership lot after just purchasing a $40,000 SUV and getting into a major auto accident. This is where Gap Insurance comes in handy. Having gap ins will pay the dollar amount difference between the current market value of your vehicle ( often KBB or Kelly Blue Book value), and the net amount owed on the vehicle. If you are considering leasing a new car or are financing an automobile with little or no money down, consider getting Gap insurance added to your plan.

Auto Insurance Discounts

There are so many ways you can save on automobile insurance. The current marketplace is more competitive than ever and consumers today are more savvy shoppers. Many smart people research extensively online before buying auto insurance, and one of the key reasons a policy decision is made are the discounts offered. While many auto insurance discounts are made available through promotions and at company sites, some discounts are not widely promoted, and you need to dig a little deeper to get them. Here are some important auto insurance tips that will get you extra savings.

1. Bundle your cars together.
If you have two or more vehicles that you’re insuring, get them onto one policy and you could save an instant 10% or more. Not all of the major automobile insurers offer the same bundling discounts, so get multiple quotes and see who can save you the most.

2. Get a higher deductible.
As stated earlier, get your deductible up and watch your rates decline. Just make sure you save the deductible amount in the unfortunate event you need to file a claim and payout that large deductible. This quick tip can save you 10%, and that is money you can keep in the bank.

3. Keep your credit score high.
More and more insurers these days are placing a greater emphasis on a person’s credit score when determining risk. If your score has dropped recently, see if you can get it up before buying automobile ins. The higher your credit score is, the lower your premiums will be. Not only will you save a lot on ins coverage with an excellent score, but also get lower auto loans rates if you are financing your vehicle.

4. Shop online for the best rates.
Shopping for car insurance is easier than ever thanks to the ease of online quotes. To get the best rates for your desired coverage, get at the minimum, 10 insurance quotes and apply all the discounts that you qualify for.

So now you are hopefully ready to apply these helpful car insurance tips and save on your next auto insurance policy. Start your comparison shopping today and get your free, no-obligation online quote. You can save up to $500 and find online discounts that could save you even more.

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