10 Things You Should Know About Auto Insurance
Auto insurance protect you against financial loss if you have an accident. It is contract between you and the insurance company. You agree to pay the premium and the insurance company agree to pay your losses as defined in your policy.
A policy purchased by vehicle owners to mitigate costs associated with getting into an auto accident. Instead of paying out of pocket for auto accidents, people pay annual premiums to an auto insurance company; the company then pays all or most of the costs associated with an auto accident or other vehicle damage.
1.Insurance rate setting
Rate insurance making is the determination of what rates, or premiums, to charge for insurance. A rate is the price per unit of insurance for each exposure unit, which is a unit of liability or property with similar characteristics. Yes, the government has nothing to do with your car insurance rate. Where you live, your credit score, marital status and your driving record is what actually affects your premium.
2.Accident insurance as protection
Some drivers are lucky enough never to have been or to be involved in an accident. However, if by chance you do have an accident; your risk of losing everything is great. Car insurance is the best protection you can have in the event an automobile accident occurs. It’s also a legal issue – you are required, by law, to have some basic form of auto insurance, and failing to do so carries some fairly strict punishments. So, if you never had been involved in a car accident in some certain times, you do still need automobile insurance to protection your better life.
3.Avoid duplicating medical coverage
If you’re already covered with a decent health, life and/or disability insurance policy, just buy the the minimum personal injury protection that your state requires. In some places the reduction is as much as 40%. So, if you have adequate health insurance you could weigh the pros and cons of eliminating this in auto insurance.
4.Safety features can save you money, too.
Did you know that You can often get a discount if you own a car with automatic seat belts, anti-lock brakes and/or daytime running lights? Also, if you have an approved alarm system or other anti-theft device you can save money, too.
5.Put all your family’s vehicles with one insurance carrier.
Many insurance companies will be happy to take your premiums for more than one car at a time. And not only that — if you buy homeowner’s and/or life insurance too, you’ll save even more.
6.Should not be shopping based on price along.
The insurance company should provide good service at the best price. Excellent personal service is available as well, and they provide added conveniences, although they cost a fair bit more. Ask the company how you can lower your costs, and also check their financial ratings. The rule of thumb is always to get three price quotes from three different companies, and pick the one with the best value.
7.Filter some types of coverage from your policy.
Almost all the states require liability coverage for your car, but the rest of the coverage is probably dispensable. However, you do not want to be under insured if you’re in an accident, so it isn’t advisable to remove all of your additional coverage. Optional coverage includes medical payments, uninsured motorist, collision, and comprehensive coverage.
8.Combine your living needs insurance.
Consider availing the insurance from the same company that has you covered for home, accident, or life. Many companies offer concessions to clients who have more than one kind of policy. Known as a multi-policy discount this could benefit you.
9.Credit scores don’t affect insurance rates.
Most car insurers take a lot of factors into consideration when determining your premium rates. Since your credit score is an indication of how well you manage your financial affairs, many companies look at this number if you want to purchase, renew or change an insurance policy. Most policies are based on your personal credit record. Having an unshakable credit history can lower costs. Pay bills on time, don’t avail too many loans, and be sure that credit balances are as low as possible
10.Rise your deductible.
Choose to have higher deductibles this will reduce the burden by at least 15-25%. But look at your finances first and determine whether you can set aside US$ 200-US$1000 periodically to create an emergency vehicle fund. The higher the deductible, the lower your monthly costs will be.
Make time to make a big saving. Check through all the parameters and mark areas where a saving can be made. The market is competitive and you can be the beneficiary. Pull out your policy now. Hope there may be smart ways you can cut your premiums.