If you have a car, you need insurance for it! The world of insurance, however, can be murky and difficult to understand, much less navigate – that’s why many people avoid thinking about it. Being smart about it, though, is a better path to making sure your money is well spent. So, you and your car are well taken care of. Try these tips for getting better results with your auto insurance.
When considering insurance for a young driver, be sure that it is known to the insurance provider that they will only have access to one car. This will cut the rates considerably, especially if the least valuable and safest car is chosen. Having multiple cars can be a blessing for convenience, but when rates are considered, it is not a good idea.
When you are dealing with car insurance you should always try to find ways to reduce your premium so that you can always get the best price. A lot of insurance companies will lower your rate if you are someone that drives less the 7500 miles in a year. If you can, try taking public transportation to work or even car pooling.
When adding a member of the family to your insurance plan, check and see if it may be cheaper for them to get covered separately. The general rule of thumb is that it is less expensive to add on to your policy, but if you have a high premium already they may be able to find cheaper coverage on their own.
Take a course on safe driving. First, you will want to check and see if your car insurance provider offers any discounts for safe driving courses. Many do. Having taken one might qualify you for a discount. The courses themselves are not very expensive and usually do not take more than a week or two to complete.
Find out all of the available discounts that your insurance provider offers. There may be some discounts available that you did not know about when you opened your policy. You may have to take a driver’s course of some kind but it will increase your driving skills and reduce your premiums.
Look in to the option of group insurance. There are some insurance companies that offer discounts to drivers who get their insurance through a group plan. This could be a policy through an employer or club. Inquire with your employer or any clubs that you belong to and find out if it is available.
As you do a comparative analysis of automobile insurance options, remember that the total cost of yearly premiums is only the beginning. Know about what limitations you may face; what are the deductibles, what’s the level of coverage and what kind of limitations you’ll face, are a few good questions to ask.
In order to save money on car insurance, it is critical that you understand what level of insurance you need. If you are driving an older car, it might not be worth paying for comprehensive or collision coverage. The most your insurance company will pay for damage to the car is its current resale value. Find the current resale value of your car and check it against how much you could save over two or three years by switching to the minimum liability insurance. You could find that simply switching your coverage from collision to liability will save you hundreds of dollars!
Be a good and defensive driver. Avoid text messaging or any other distractions that may cause you to have an accident. If you have an accident that is your fault, it will cause your car insurance rates to go up and you will pay more for your car insurance indefinitely.
If your car has lots of safety features, be sure your insurance agent knows about them! These can save you money. Also, ask if there are features you can add that will save you money. For example, adding an alarm system or steering wheel lock to prevent theft can get you a nice discount on car insurance.
Always have a new policy lined up before you cancel an insurance policy. Otherwise, you could end up with a lapse of coverage. Even a lapse of a single day can raise your car insurance rates significantly. The new company will be able to set up your policy to match up with cancellation of the old policy, so you don’t overpay.
Raising your deductible is a good way to ensure that you have a lower premium. A larger deductible can have a tremendous affect on your total policy cost. If you decide to do this, you must remember that if you get into an accident, you will have to pay the amount of the deductible. It is a good idea to set up an emergency fund for this, just in case.
Your car and your health are important to your lifestyle, and that’s why insurance exists at all. With these tips, you can do more than simply let things happen – now you’re educated about auto insurance, so you can feel confident about where your money is going and what exactly your insurance is doing.