Auto insurance includes many different types of coverage, such as liability insurance, collision insurance, comprehensive insurance, medical insurance, uninsured motorist insurance, rental reimbursement, towing and labour cost coverage, and gap coverage.
Different states have different rules about what a car owner needs and what will keep problems from happening. It's a good idea to get a little more insurance than you have to. Insurance premiums can be too expensive, so if you want to be a smart consumer, you need to do a lot of research.
Golden rules:
Visit the website of the state's insurance department to find information for consumers. Read all the rules and decide what kind of coverage you need. Make sure to look at the sample rates. This research will give you a pretty good idea of how much the premiums will be.
Ask at least three big names in the car insurance business for quotes. Insurance companies like Geico (www.geico.com), State Farm (www.statefarm.com), and Allstate (www.allstate.com).
Find out what the highest deductible you can have is and whether or not you can pay for it. Most of the time, raising a deductible from US$ 200 to US$ 500 can cut premiums by up to 30%.
Think about how much your car is worth. If your car is old and worth less than $2,000, you might not need collision and comprehensive coverage. The premiums you pay will be a lot more than what you get back. Ask your insurance company how much the car is worth on the market. You can find out how much your car is worth by going to http://www.kbb.com/.
- Don't buy a car without using your head. Make sure to choose one that doesn't require you to pay more for insurance. It's important to think about not just how much it costs to buy, but also how much it costs to insure.
- Find out if the insurance company has a plan that gives you a discount if you use or drive your car less. Some companies will give you a discount if you take the bus or train to work. You have to show them proof that you do.
- Check your insurance credit history to make sure it is correct. A lot of insurance companies base premiums on your credit history.
- Learn the rules of the state you live in. Find out if your premiums can be lowered even more because your car has airbags, anti-lock brakes, and other safety features. Talk to the companies and your agent to find out.
- Find out if you can get discounts if you are a member of groups like the American Automobile Association. Ask about programs for trade, professional associations, and business benefits. Some companies have discounts for students with a GPA of 3.0 or higher, for people who are retired, for customers who buy from them often, and more.
- Make sure to ask the insurance company if they have group plans that cover more than one car. Multiline discounts include a wide range of options, such as home insurance, safety features, not having any accidents, being over 50, having anti-theft devices fixed, and so on.
Keep in mind that high-performance cars have higher insurance rates. The premium is based on how much it costs to fix the car, how easy it is to get parts, and how likely it is to be stolen. Buy a car that doesn't need more expensive insurance, and look around for the best deals.
