It doesn’t take a full day out on the road to figure out why you need auto insurance. The number of traffic accidents is, unfortunately, high, so you should make insurance a high priority if you drive. The chances of at some point ending up with a small scratch on your car or being involved in a fender bender are high even if you are an excellent driver. It may be annoying to dish out a certain amount of money each month to pay for car insurance, but it is one of the life’s necessities, and you will be glad you did if you ever need to file a claim.
Types of Auto Insurance
Before deciding on an auto insurance policy, it is worthwhile to familiarize yourself with different kinds of car coverage. There is collision insurance that will cover the costs of your vehicle even if the collision is your fault. Comprehensive coverage is used when the damage is caused by something other than a collision, such a weather, animals or a fire. Property damage comes in handy if your vehicle destroys someone else’s property in some way. There is insurance coverage that can deal with medical expenses of you and your passengers if there are an injury and another type of coverage that takes care of the other party. Finally, there is insurance to cover costs if the other driver is not insured.
How to Save
Review various policies you already have to make sure you are not paying duplicate insurance. Decide on what kind of policies you want and whether you are looking for an umbrella policy or various types of individual coverage. Look far and wide and receive as many quotes as you can. If you want the best deal, it may be useful to enlist the services of an auto insurance agent. These agents charge fees, but it might be worth it if you would otherwise pay high premiums and the agent finds deals for you.
One way to lower your premiums is to raise your deductible. This means you are agreeing to pay more out of pocket before the policy starts to cover the injury or damage. Make sure you are prepared to cover these potential expenses, however, before you decide to raise your deductibles.
Look for Discounts
Once you have decided on a policy, there are many ways you can save more money. Ask about discounts such as those offered to drivers who install anti-lock brakes or take defensive driving courses. Keep your driving record clean and keep in mind that getting a ticket can raise your premium. If you can’t afford that flashy sports car, take heart in the fact that at least you will be paying less for insurance. Driving an older car you already own may translate into lower premiums, and hot new wheels mean you will be paying more money in insurance. Another way to save is to offer to pay every six months or annually rather than monthly. It is easier for companies to charge less often, and they may discount the total amount if you pay in lump sums.