Car Insurance: Tips on Auto Insurance
By comparison shopping, you can save hundreds of dollars on your annual car insurance premiums, while ensuring that you are well protected in case of accident, injury or theft.
Although car insurance is expensive - on average 870 per year per car - many people buy policies with little or no research, but insurance premium payments you made to buy coverage may vary up to 300 percent, depending on the company you choose so it is important to compare prices and do your research before choosing an auto insurer.
Car insurance companies offer different types of coverage and most states require drivers to purchase a minimum amount of certain types of coverage is a short description of the types of car insurance coverage.
Bodily liability insurance wound This coverage is mandatory in most states the bodily injury coverage pays for medical expenses, lost wages, rehabilitation, treatment and or funeral expenses for any person injured or killed by car Such coverage will also pay for pain and suffering damages when a third party makes a complaint against successfully.
Liability insurance property damages This warranty covers repair and replacement of vehicles and other property damaged in an accident where you or another authorized driver causes an accident.
Personal injury protection Country medical expenses and a percentage of lost wages to you or any other person authorized to drive your car, regardless of who caused the accident.
Medical coverage payments usually optional, this guarantee covers medical expenses and the above amounts covered by personal insurance protection, regardless of who caused the accident.
Umbrella policies pay for losses above and beyond those covered by either auto or home insurance; which is sometimes a cost effective way to purchase liability insurance.
Collision insurance pays for damage to your car, less any deductible, regardless of who is at fault If your car is financed, your lender may require you to buy this coverage and may even require a particular franchise.
Comprehensive coverage pays for damage or loss of your car in case of fire, theft or vandalism Again, your lender may require this coverage if your car is financed.
Protecting an uninsured motorist coverage or underinsured protects you, the passengers, and any person authorized to drive your car against injuries caused by an uninsured driver, underinsured or hit-and-run.
Rental reimbursement pays up to a certain amount per day for car rental fees or transportation while your car is being repaired following an accident.
Towing and labor covers up to a certain amount for the cost of towing and labor if your car breaks down, whether or not there is an accident involved.
Country automatic replacement for the replacement value of the car, not its depreciated value.
You can save time and money for auto insurance purchase if you know what you want and need.
Ask about insurance requirements in your state requirements differ from state to Search for your requirements of state insurance on consumer action website or the National Association of insurance Commissioners website.
Find out what your car is worth, you can find the current value of your car on the Kelley Blue Book website.
Having a rough idea of your net worth, or what you are protecting when wearing adequate cover liability insurance of liability Buy to protect your belongings in case of accident.
Here are some specific guidelines for different types of coverage.
Liability insurance for bodily injury Experts agree that this is the most important type of cover to transport Consumer Reports recommends that people with a house and other assets to buy a coverage of at least 100 000 per person 300 000 persons of accidents with less active can buy the minimum condition the biggest mistake consumers make is to be underinsured coverage on bodily injury liability and collision overinsured and full coverage.
The property-damage liability insurance Consumer Reports recommends the purchase of at least 100 000 per car.
Medical payments coverage Whether you need an optional medical coverage and how much you need depends on what your insurance includes coverage Some experts recommend that people with excellent health insurance benefits and low co -payments buy the minimum of state is important to remember that medical payments coverage also pays medical expenses for passengers in the car can not be so sure that your regular health insurance gained coverage t.
Collision and comprehensive You need to take the biggest deductible you can afford in a collision and comprehensive, especially if you have a new car if you have an old, low-cost or cheap car, you may want to consider drop the collision and comprehensive coverage altogether, however, you should crash down if you can afford to repair or replace the car accident.
Some political experts Umbrella recommend that people with assets of more than 300,000 purchase of a 1 million umbrella liability policy in addition to other auto insurance This additional protection will cost between 150 and 300 extra per year in fees insurance.
Uninsured underinsured coverage Consumer Reports suggest buying at least 100 000 per person and 300 000 per accident.
The price of a car insurance policy will depend on a number of factors, some of which you can control and some you can not you should have answers to the questions at hand when you apply for insurance automobile.
Make, model and year of the car you can ask how many doors of your car if it has two or four wheel drive and engine size in cubic inches.
Where do you live people in large metropolitan areas tend to pay more for car insurance than those living in rural areas, people with certain postal codes or living in certain areas within a city pay more than others.
Driving record and experience, you will be asked about any history of accidents and traffic violations.
The age, sex and marital status of drivers Men often pay more than younger women drivers often pay higher premiums usually single men under 25 years pay the highest premiums.
Driver training course for new drivers You will be asked if a driver who has just received a license followed a driver training course.
What the car is used for drivers who use their cars for fun pay less than those who use them to get to work.
The number of miles driven annually Some insurers require average daily and annual mileage.
The number of insured cars, including two or more cars on the same policy can save you money.
Employment History Insurance companies are particularly interested in how long you've been with the same employer.
When the vehicle is kept cars kept in garages usually cost less to insure.
Safety devices Cars with antilock brakes and air bags often cost less to insure than cars without these characteristics.
Credit history Insurance companies may ask if you have been denied credit within the last 12 months.
A copy of your driver's license s, vehicle registration and vehicle identification number.
To avoid problems later if you need to file a claim, it is best to be honest when you answer these questions.
Raise your deductibles One way to save money is to take on more franchises collision and comprehensive coverage you can afford a higher deductible means lower premiums.
Choose a car that costs less to insure the purchase of a low-profile car - which is rarely stolen and not too expensive to repair - can help reduce insurance costs in the cost of insurance before buy a sports car car, for example, are very expensive to insure while less expensive cars are small sedans and medium enterprises and minivans.
When the gap, cancel the collision coverage if you will not be driving for a long period of time - over 30 days, say - you should inform your insurance company Sometimes it is possible to cancel bonuses collision for that period of time.
Ensuring a young driver in your family policy rather than a separate policy This usually save money Explore discounts for teens who have a good academic record, have passed a driver training course, or who smoke n t .
If you served in the military, you can sometimes get discounts on car insurance through USAA Visit for more information.
To find out if your employer gets preferential rates through a group plan.
Use your car for fun and for other purposes, and get to work on public transportation This can save you money on your policy.
If you are an older driver, investigate the rates offered by organizations such as the American Association of Retired Persons AARP You can find on the Internet.
If you have collision coverage on your car, you do need to cover collision damage when you rent a car for people who rent cars may often want to buy a non-owner liability policy for about 300 a year, rather than paying for by expensive collision damage coverage every time they rent a car.
Insurance companies offer numerous discounts Make sure to ask if discounts are offered for the following.
Good driving record usually a clean record - no accidents or violations in motion for the last three years - will result in lower premiums.
Drivers over 55 years following a recent driving course.
Drivers carpool drivers who carpool to work sometimes receive a discount of 10 to 20 percent on premiums.
More car insurance on the same policy can save you a 15-20 percent discount.
Low annual mileage discounts Some companies offer if you drive less than a certain number of miles each year.
College students away at school Some insurers offer discounts to parents with a college age student attending school more than 100 miles from home and doesn t keep a car on campus.
Locks Some insurers offer discounts 5-15 percent for alarm systems, wheel locks, hood locks and ignition protection devices.
Safety devices can receive up to a 30 percent medical coverage for automatic seat belts and airbags Some states such as Florida, New Jersey and New York require insurers to give discounts for cars with antilock brakes.
Smoking is considered to be a non smoking high-risk behavior drivers can benefit from Nonsmoking discount on liability, medical benefits and collisions.
Longtime customers While it is wise to compare prices, it has not always make sense to switch companies Some insurers reward longstanding customers with discounts and other money saving programs.
Your car insurance with the same carrier you use for home insurance.
Once you know the questions to ask and the coverage you want, it's time to compare prices by contacting companies and insurance agencies.
Contact a number of companies, including major companies selling auto insurance through their own agents, independent agents who sell to several different insurance companies, and insurers, or companies insurance selling to the public by telephone or the Internet.
Get as many quotes as possible Many states offer free price comparisons car insurance It is also possible to get quotes on the phone.
Using the Internet Some companies such as Progressive, offer online quotes and even provide comparative quotes from three of their biggest competitors Two online insurance sites - Quicken InsureMarket and InsWeb - are great places to comparison shop for more information on car insurance, try the network insurance News.
Ask friends for recommendations Be sure to ask about the reliability and speed with which applications are processed.
Check the records of complaints of insurance companies You can find how many were filed consumer complaints against insurance companies through the website of the National Association of Insurance Commissioners.
Look consumer businesses satisfaction ratings can be found on the J D Power and Associates website.
If you fall into the drive to ensure the category because of past accidents or violations in motion, look for a company that offers nonstandard coverage If this is not an option, you will have to buy insurance through the company s awarded by the state high-risk pool.
The insurance department in your state is a great source of information on car insurance Find out the minimum requirements for auto insurance in the state, make sure that all insurance companies you are considering licensed, and inquire about complaints You can find the number of your insurance state service in the phone book or visit the website of the national Association of insurance Commissioners or the Web site of action consumers.
Written with the help of Courtney Nash, a specialist in general search Ceridian Corporation.
C 1999 2005 Ceridian Corporation All rights reserved.
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