Auto Insurance Basics That Save
“Order your auto insurance like you order your gourmet coffee, go for the works!”
This statement implies when purchasing auto insurance coverage and deciding what coverage amounts you want on the policy. You have the choice to stick with the minimum coverage (state-minimum liability), or juice up the policy with higher liability limits, lower deductibles and tasteful extras.
Some people like their coffee black (plain). Some people prefer cappuccinos, even though they cost more. Either way, you want to be fully aware of your coverages. The worst thing to do is blame your insurance provider or agent when you find out coverage is not present. It’s your responsibility to be aware of your coverages.
Auto Insurance Basics:
It’s best to print out auto insurance quotes and compare them side by side. Apples to apples as they say.
Never the less, the smart way to compare coverage starts with knowing a few basics. Being educated on auto insurance will help you make a better informed decision. Remember, it’s not always about price.
Important keys to consider:
- 1. All 50 states require at least liability insurance coverage. States and local municipalities have began to crack down on non-insured drivers with fines up to $1,000 for fist offense.
- 2. It’s best to remember that your insurance coverage covers you as a driver unless you add additional drivers to the policy. Coverage can be forfeited, if a another person driving is found to be at fault in an accident and not a named driver on the policy.
- 3. Personal items in the vehicle are not covered. Your auto insurance policy is specific to the cover of damage to and from the auto, not items damaged or stolen from within. However, coverage for your personal items can come from a homeowners or renters insurance policy.
- 4. Some companies offer accident forgiveness packages that allow your rates to remain stable after an at-fault accident. These packages can possibly increase your rates by a few dollars per month but are normally worth it. Depending on the amount of the paid claim, your rates may not be totally safe.
- 5. Your insurance company can offer discounted rates depending on your yearly mileage. The less you drive, the less you pay, is the motto. If possible, drive as least as possible, but don’t waste sleep over it.
- 6. Avoid making small auto insurance claims. These small and yet non-costly claims can increase your rates accordingly. The same goes for claims that are barely above your deductible. It’s best to have a small savings for these small claims.
- 7. Multiple policy discounts are the easiest way to save money fast. Discounts can be significant and sometimes you can purchase additional coverage or policies with the difference. Two of the biggest are homeowners insurance and life insurance.
Small savings over time on auto insurance is possible if you take control of your insurance and review it bi-annual or annually. Start today with a free insurance quotes.