Tips To Help You Make Decisions About Auto Insurance

Greg James
October 20, 2012

If you drive a car, you must have up-to-date insurance. But, not all insurance plans are created equal; there are many different options to consider. If you take the time to learn about the subject, you may be able to get better coverage for less money.

Try to pay your car insurance on an annual basis rather than monthly. If you pay it by month you are paying around five bucks more. Five dollars a month adds up! With everything else you pay, this can become a strain. Less payments means more money.

You should understand that when you buy auto insurance, the basic policy only covers the driver who is named in the policy. Often times, what can happen is this; a person will allow someone else to drive their car. If an accident occurs, the insurance company won't pay the claim. Although it will cost extra, you can elect for coverage which will permit other drivers to operate your vehicle.

You might want to think about moving to another state or city to find a cheaper insurance plan. It's because premium amounts differ from city to city, as well as state to state. Insurance can be significantly less expensive in some cities and states than others.

Your chosen vehicle will strongly affect the size of your monthly insurance payment. If you like expensive things, your insurance will be expensive. If your goal is to keep your auto insurance costs low, pick something safe and reliable that is sold at a modest price.

Always do research on the reputation of a car insurance company before signing on with them. Your car insurance comparisons should look at more than just the cost. If the premiums being offered by an insurance company seem too good to be true, they probably are. Companies that offer suspiciously cheap rates can be a nightmare to deal with if you ever need to make a claim.

You need to understand all there is to know about the types of coverage an insurance company offers. The company you are considering should be able to cover all the options. Your car insurance should ideally cover collision, comprehensive and medical issues that might arise from an accident. You will also need to be insured against uninsured drivers and from other types of damages to your car, for instance from a fire.

There are optional protections past legal protections that can further protect you. You will pay more if you choose these add-ons, but, in many cases, they are worth the money. For example, if you get uninsured motorist insurance, you are protected even if the other party involved is illegally driving without insurance.

If you increase your deductibles, you can save money. Even though this can be risky, it can be an excellent method of saving if you can make the initiative to put some money aside, so that you can pay the deductible in case of an accident. If your deductible is low, your insurance premiums will be as well.

Consider eliminating the car rental option on your policy to save money. When you consider including car rental coverage, speak with your insurance company and ask how much that coverage is costing you in premium dollars. Removing it will save you money, so consider whether doing so is worth the risk.

Requesting payment receipts from your insurance company is a really smart idea. If you are ever pulled over or placed in any other situation in which concerns may arise about your insurance, having this proof of current coverage will protect you from further penalization.

Make sure you keep your license clean. You can pay more on insurance if you have tickets and accidents on your record. If you do have an accident or get a ticket, consider attending traffic school. This can often offset the increase in your insurance costs.

When looking for auto insurance, get quotes from various companies. By shopping around, you will be able to receive the best rate for your insurance policy.

Consider buying an insurance policy that will pay for a rental car if needed due to an accident. If you were to be in an accident or go on vacation or need repairs on your vehicle, you don't want to have to pay for separate insurance just for the rental car. You'd want a policy where the coverage you are already paying for will roll over onto any rental you hire. This extra policy can save you up to $20 each day should you need to take advantage of it. This is the price that you will pay per day!

For cheaper insurance rates, try increasing your FICO score. Who knew auto insurers check your credit? There have been studies done that have pointed out that individuals with a lower credit score tend to wind up in more accidents. As a result of these findings, many insurance companies have started weaving the credit check results into their pricing. Your insurance will stay low and your credit will be in better shape.

Sometimes being a part of a well-known organization can help you get discounts on an auto insurance policy. AARP is a great organization to get auto insurance discounts through.

There are more details involved in choosing an auto insurance policy, than you might have thought there were. Like with many things, you should take the time to learn as much as you can to ensure your car is well-insured and covered under any situation that may arise. By utilizing the tips above, you will be better equipped to buy the best policy.

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