Sep 04
2008Car insurance is one of those things that you pay but don?t think much about, unless you need it. Nevertheless, do most people know what they bought or whether they got the best price? Absolutely not! You can protect yourself from fast talking agents if you know a little about car insurance and what to look for in a policy.
The minimum coverage required by the states varies, and so do some wording in the no-fault insurance states but the concepts are the same everywhere.
The first part of your policy is the collision and comprehensive coverage, which covers the automobile itself. Collision covers those trees which jump in front of your car and rude drivers who put their cars in the way of yours. Comprehensive includes damage and theft (hail, falling trees and the like).
Liability is the second part of your car insurance policy. This covers the damage done to another driver’s car when you have caused an accident. Liability coverage will be represented in numbers - for instance, 25/50/10. These numbers mean that your policy covers up to 25,000 in costs per person, up to 50,000 per accident and will cover 10,000 in property damage per accident.
Medical payments to others, covers anyone in the accident, regardless of fault. Your policy even covers you if hit while walking. If you have an accident and no health insurance, this part covers you. It also defrays expenses from an accident your health insurance doesn?t cover.
There are additional coverages in the policy such as uninsured/under insured motorists, which pays if someone hits you without any or enough coverage. This also covers a hit and run. Also towing may be added for a nominal sum if you have full coverage, both liability and comprehensive and collision.
You can save a lot of money on car insurance by keeping these rules in mind:
1.Always get several quotes when it’s time to renew your policy. There are several Internet sites that you simply fill out the form once and they would check hundreds of companies. Be sure you always compare like coverage. Check to make sure that all quotes contain exactly the same thing you have.
2.Check for discounts with your homeowners insurance company. Sometimes they offer a discount if you carry both products with them.
3. Ask if there are any available discounts. You may be able to get discounts if you are a young or higher risk driver, such as a young person or student. These discounts may be dependent on keeping up good grades or taking driving courses.
4. Make sure that you really need to cover your car. If you don’t have a loan on the car, you might find it cheaper to just let the comprehensive and collision part of your policy go. Compare the payments you will receive if the car gets totaled against the Kelly blue book value - If this amount is less than two years of your monthly premium, you may want to drop this coverage and use the savings for a newer vehicle. However, don’t be cheap when it comes to liability coverage; it is well worth the cost.
5. Think about getting a beater and using it for commuting and short trips. You can carry full insurance on your good car and carry only liability insurance on the beater. You can save money on your insurance and wear and tear on your good car this way.
